Carbon Capture and Sequestration Market

Market Definition

Carbon capture and sequestration refers to the process of capturing carbon dioxide emissions from industrial or energy-related sources and storing them in deep geological formations to prevent atmospheric release.

This includes technologies for carbon dioxide capture, compression, transportation, and long-term storage in sites such as saline aquifers, depleted oil and gas fields, and unmineable coal seams. Applications include storage in depleted oil and gas fields, deep saline formations, and use in enhanced oil recovery.

Carbon Capture and Sequestration Market Overview

The global carbon capture and sequestration market size was valued at USD 3,482.1 million in 2024 and is projected to grow from USD 3,952.9 million in 2025 to USD 9,770.3 million by 2032, exhibiting a CAGR of 13.72% during the forecast period.

This growth is attributed to the increasing deployment of carbon capture solutions across key emission-intensive sectors such as power generation, cement, and chemical manufacturing. Rising regulatory pressure to curb carbon emissions, along with growing commitments to achieve net-zero targets, is boosting the implementation of capture, transport, and storage technologies.

Key Highlights

1. The carbon capture and sequestration industry size was valued at USD 3,482.1 million in 2024.
2. The market is projected to grow at a CAGR of 13.72% from 2025 to 2032.
3. North America held a share of 35.95% in 2024, valued at USD 1,251.8 million.
4. The natural gas processing segment garnered USD 977.7 million in revenue in 2024.
5. The dedicated storage & treatment segment is expected to reach USD 6,013.6 million by 2032.
6. Asia Pacific is anticipated to grow at a CAGR of 14.64% through the projection period.

Major companies operating in the carbon capture and sequestration industry are Aemetis, Inc., 1PointFive, Air Products and Chemicals, Inc., Fluor Corporation, ADNOC Group, Equinor ASA, Dakota Gasification Company, Climeworks, Carbfix hf., Charm Industrial, Heirloom Carbon Technologies, CarbonCure Technologies Inc., Planetary Technologies, Inc., Living Carbon, and CarbonBuilt.

The growing emphasis on environmental sustainability, climate change mitigation, and the circular carbon economy is fueling market expansion. Additionally, ongoing advancements in capture efficiency, the development of large-scale storage infrastructure, and rising investments from energy companies and government bodies are accelerating market development.

• In June 2024, John Wood Group PLC completed preliminary engineering work for the world’s largest planned carbon capture and sequestration hub. The project aims to support large-scale carbon dioxide storage for industrial facilities along the U.S. Gulf Coast, advancing regional decarbonization efforts.

Market Driver

Global Transition To Net-Zero Emission Goals

The growth of the carbon capture and sequestration market is fueled by the global shift toward achieving net-zero greenhouse gas emissions, as outlined in international climate agreements and national policy frameworks.

As countries and corporations commit to mid-century carbon neutrality goals, there is increasing pressure on emission-intensive sectors to implement technologies that mitigate their environmental impact. This shift is creating a strong demand for scalable carbon capture and storage solutions, particularly in hard-to-abate industries such as power, cement, and steel.

This shift is further supported by climate financing mechanisms, cross-sector partnerships, and policy incentives aimed at accelerating decarbonization efforts. As carbon neutrality becomes central to environmental and industrial strategy, investment in carbon capture infrastructure is expanding rapidly, reinforcing its importance in global climate action.

• In July 2024, CF Industries, in partnership with ExxonMobil, announced a USD 100 million emissions reduction project at its Yazoo City ammonia facility. The carbon capture and sequestration initiative will capture up to 500,000 metric tons of CO₂ annually, with permanent storage beginning in 2028.

Market Challenge

Lack of Scalable and Reliable Storage Infrastructure

The lack of scalable and reliable storage infrastructure presents a significant challenge to the expansion of the carbon capture and sequestration market, particularly in regions with limited access to well-characterized geological formations.

The development of transport pipelines, injection wells, and monitoring systems requires substantial investment, long lead times, and complex regulatory approvals, which delay project deployment and limit expansion beyond pilot-scale operations. Additionally, uneven geographic distribution of suitable storage sites creates logistical hurdles for emitters located far from potential storage zones, increasing transportation costs and technical complexity.

To overcome these challenges, stakeholders are focusing on the development of regional carbon storage hubs, investing in shared infrastructure, and streamlining site characterization and permitting processes. Industry leaders are also engaging in public-private partnerships, advancing carbon transport technologies, and promoting cross-border collaboration to build resilient and accessible storage networks that can support large-scale deployment.

Market Trend

Integration with Hydrogen Production & Renewables

The integration of carbon capture and sequestration with clean hydrogen production and renewable energy systems is significantly influencing the market by offering scalable pathways to industrial decarbonization.

This approach enables the production of blue hydrogen by capturing carbon emissions from natural gas reforming, providing a lower-emission alternative for sectors such as steel, cement, and refining. When paired with bioenergy and intermittent renewables, carbon capture also facilitates negative emissions and enhances grid stability.

This integrated approach supports the development of flexible, low-carbon energy systems that are critical to achieving national and corporate climate goals. Additionally, the growing investment in hydrogen infrastructure, cross-sector partnerships, and long-term policy support are reinforcing the role of carbon capture in clean energy integration.

As energy systems transition to sustainability, the strategic alignment of carbon capture with hydrogen and renewables is accelerating technology deployment and driving long-term market growth.

• In February 2024, BP selected BASF’s OASE white gas treating technology for its H2Teesside blue hydrogen project in the UK. The technology is designed to capture up to 99.99% of carbon dioxide during hydrogen production, enhancing energy efficiency and lowering emissions. Once operational in 2028, the facility aims to capture around two million tonnes of CO₂ annually, with storage supported by the Northern Endurance partnership.

Carbon Capture and Sequestration Market Report Snapshot

Segmentation	Details
By Capture Source	Natural Gas Processing, Power Generation, Fertilizer’s Production, Chemicals, and Others
By End Use	Dedicated Storage & Treatment, Enhanced Oil Recovery (EOR)
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Capture Source (Natural Gas Processing, Power Generation, Fertilizer’s Production, Chemicals, and Others): The natural gas processing segment earned USD 977.7 million in 2024, mainly due to its widespread adoption of capture technologies to remove carbon dioxide as part of routine gas purification processes.
• By End Use (Dedicated Storage & Treatment and Enhanced Oil Recovery (EOR)): The dedicated storage & treatment segment held a share of 62.15% in 2024, largely attributed to the growing number of large-scale sequestration projects focused on long-term carbon dioxide storage in geological formations.

Carbon Capture and Sequestration Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America carbon capture and sequestration market share stood at 35.95% in 2024, valued at USD 1,251.8 million. This dominance is reinforced by supportive regulatory policies, significant government investments, and early adoption of carbon capture technologies across key industrial sectors.

Additionally, the availability of established pipeline and storage infrastructure, combined with strong collaboration between energy companies and technology providers, is facilitating the implementation of carbon capture projects at the regional level. 

The growing focus on reducing emissions from power generation and natural gas processing is further boosting demand for large-scale carbon capture solutions. Furthermore, advancements in capture efficiency, availability of tax incentives, and an expanding portfolio of commercial-scale projects are accelerating regional market expansion.

• In June 2024, Technip Energies and Turner Industries received a contract from ExxonMobil to implement a carbon capture and sequestration project at its Louisiana facility. The project is a part of ExxonMobil’s strategy to develop large-scale carbon reduction solutions across its U.S. operations.

The Asia-Pacific carbon capture and sequestration industry is set to grow at a CAGR of 14.64% over the forecast period. This growth is attributed to rising industrial emissions, increasing energy consumption, and a growing focus on achieving national decarbonization targets.

The presence of coal-dependent economies, combined with rising environmental concerns, is fueling the adoption of carbon capture technologies in key sectors such as power generation, cement, and steel. Government-led initiatives supporting low-carbon energy transitions and infrastructure development are further propelling regional market growth.

Additionally, increasing collaborations between regional industries, research institutions, and global technology providers are enhancing project scalability and accelerating the deployment of carbon capture and sequestration solutions across Asia Pacific.

Regulatory Frameworks

• In the EU, Directive 2009/31/EC on the Geological Storage of Carbon Dioxide governs the capture, transport, and storage of carbon dioxide. It aims to ensure environmentally safe sequestration by setting standards for site selection, monitoring, and liability, contributing to the EU’s broader decarbonization and climate neutrality goals.
• In the U.S., the Class VI Wells Rule under the Underground Injection Control (UIC) Program regulates the injection of carbon dioxide for long-term geological sequestration. It sets technical standards and permitting requirements to ensure safe, permanent storage and supports the development of carbon capture and sequestration infrastructure.
• In Australia, the Offshore Petroleum and Greenhouse Gas Storage Act regulates carbon dioxide storage in offshore geological formations. It provides a legal framework for licensing, monitoring, and long-term liability management, enabling the development of commercial-scale CCS projects in marine environments.

Competitive Landscape

Companies operating in the carbon capture and sequestration industry are actively enhancing their competitive position through technological innovation, infrastructure expansion, and strategic alliances with industrial and government stakeholders. Key players are heavily investing in research and development to improve capture efficiency, reduce energy consumption, and advance monitoring and verification systems that ensure long-term storage integrity.

They are also focusing on developing modular and scalable carbon capture solutions tailored to diverse industrial applications, including blue hydrogen production, cement manufacturing, and natural gas processing. Additionally, firms are partnering with energy companies, research institutions, and public sector entities to accelerate large-scale project deployment, secure funding, and expand their presence across both established and emerging markets.

• In June 2024, SLB and Aker Carbon Capture finalized a joint venture to scale carbon capture and sequestration solutions, combining their technologies to serve industrial emitters. The new entity, based in Oslo, aims to expand deployment in hard-to-abate sectors with a focus on modular systems and large-scale storage.

Key Companies in Carbon Capture and Sequestration Market:

• Aemetis, Inc.
• 1PointFive
• Air Products and Chemicals, Inc.
• Fluor Corporation
• ADNOC Group
• Equinor ASA
• Dakota Gasification Company
• Climeworks
• Carbfix hf.
• Charm Industrial
• Heirloom Carbon Technologies
• CarbonCure Technologies Inc.
• Planetary Technologies, Inc.
• Living Carbon
• CarbonBuilt

Recent Developments (Partnerships/Agreements/Expansion)

• In May 2025, BKV Corporation and Copenhagen Infrastructure Partners formed a strategic USD 500 million joint venture to advance carbon capture and sequestration solutions. The partnership aims to develop scalable infrastructure for capturing CO₂ from industrial sources and storing it securely underground.
• In February 2025, Bloom Energy and Chart Industries partnered to integrate fuel cell technology with advanced CO₂ processing, aiming to deliver a scalable, low-carbon power solution for energy-intensive industries through simplified capture and potential sequestration or reuse.
• In October 2024, 1PointFive and Enterprise Products Partners signed an agreement to develop a CO₂ pipeline network linking industrial sites near the Houston Ship Channel to the Bluebonnet Sequestration Hub. The partnership aims to expand carbon transport and storage access for hard-to-abate sectors in southeast Texas.
• In November 2023, BKV Corporation and EnLink Midstream launched their first carbon capture and sequestration project in the Barnett Shale, initiating underground CO₂ injections from natural gas processing in Bridgeport, Texas. The facility is designed to sequester up to ~210,000 metric tons of CO₂ annually, serving as a scalable model for future Class II sequestration wells.
• In September 2023, ADNOC invested in major integrated carbon capture and sequestration projects in the MENA region. The project captured carbon dioxide from industrial operations for secure underground storage, supporting the company’s emissions reduction goals and strengthening its regional carbon management capabilities.