Carbon Capture and Storage: A Key to Tackle Global Warming
The world is on fire. The rising repercussions of climate change are now impossible to ignore. the Intergovernmental Panel on Climate Change (IPCC) concluded in its most recent report that, there is no doubt that human activity caused the atmosphere, ocean, and land to warm. According to our analyst, the global carbon capture and storage market was valued at USD 1.7 billion in 2021 and is projected to reach up to USD 3.27 billion by 2030, registering a CAGR of 10 % during the projection period.
Where does it leave us, then? As part of their commitment to limiting global warming to roughly +1.5Â°C above pre-industrial levels by 2030, world leaders made the Paris Climate Agreement in 2016. Through the use of renewable energy, energy efficiency, and the storage and utilization of carbon, these leaders aimed to decarbonize the future. Canada went one step further and promised to have zero emissions by 2050.
Let's find out what carbon capture is, what is holding it back, and what innovation can help this process forward.
What Exactly Does "Carbon Capture and Storage" Mean?
In the battle against global warming, carbon emissions could be reduced by utilizing carbon capture and storage (CCS). It involves capturing the carbon dioxide produced by power plants or other industrial processes, such as the production of steel or cement, transferring it, and then storing it underground. Carbon dioxide (CO2) emissions from industrial operations, such as the manufacture of steel and cement, or from the burning of fossil fuels in the creation of electricity are captured using CCS. This carbon is then transported from the location of production and piped or delivered to be kept underground in geological formations.
Connecting Link Between Power Generation and Adoption of CCS
Power generation had a maximum market share and dominated the market in 2021. One of the important business sectors in the oil and gas sector, with a sizable stake in 2021, is carbon capture and storage. The oil and gas sector's strong foundational expertise and cutting-edge technology are two of the most important reasons encouraging the development of CCS projects. The adoption of CCS in the oil and gas sector is facilitated by elements including easy access to low-cost financing, extensive value chain links, and high revenue of market participants.
Since the 1930s, methods for extracting CO2 from streams of unprocessed natural gas have been used to meet gas demand. In the past, there have been a few small-scale uses for CO2 that has been caught, but most of the CO2 that has been separated has been released into the atmosphere. However, the use of CCS projects is becoming more important to absorb CO2 released into the atmosphere as a result of the present restrictions and taxes imposed by the regional and municipal governments.
Foot printing of Carbon Capture and Storage on a Global Scale
Some of the key drivers driving the growth of the carbon capture and storage market are rapid industrialization, the increasing need to reduce carbon emissions, the implementation of strict environmental regulations, and the expanding popularity of sustainable technologies.
For international leaders in recent years, climate change has grown to be a major concern. Around the world, it has had a serious influence on society as well as on animals and the environment, and it has prompted varied responses from nations.
Technologies for carbon capture and storage have come under the limelight as a result of the growing need to tackle global warming as a result of greater emission levels. The largest industries in the world, which are the main sources of carbon emissions, are utilizing CCS technologies more and more. As a result, the market for carbon capture and storage is growing, and this pattern is anticipated to continue for the foreseeable future.
Governments across the globe are implementing a variety of initiatives to encourage the adoption of carbon capture and storage technologies. New regulations are consistently implemented in an effort to lower the amount of carbon dioxide produced by industry and power plants. This will continue to drive the market for CCS technologies over the course of the projection period.
The oil and gas sector is quickly becoming the best application field for carbon capture and storage technologies as the number of enhanced oil recovery (EOR) projects rises. The database of the International Energy Association (IEA) shows that CO2-EOR is used to produce about 500,000 barrels of oil per day.
What are the New Innovations that Contributed to the Carbon Capture and Storage Market Growth?
● To begin front-end planning for Direct Air Capture facilities in Texas, Carbon Engineering announced in October 2022. It is anticipated that this location will make it easier to construct a number of DAC facilities with the capacity to capture 30 million tonnes of CO2 per year for targeted sequestration.
For the implementation of carbon capture and storage (CCS) projects in Timor-Leste and Australia, CO2CRC and Santos teamed up in March 2022 with Korea Trade Insurance Corporation, SKE&S, and Korea-CCUS Association (K-CCUS). According to Santos, these businesses have signed an MOU to work together on the construction of carbon capture and storage (CCS) plants in Australia and surrounding regions.
The construction of a sizable carbon capture and storage (CCS) project in Alberta, Canada, was announced by Shell in July 2021. The plant is anticipated to remove 300 million tonnes of CO2 from the atmosphere throughout the duration of its operation as a chemical and refinery.
In June 2021, Carbon Engineering stated that they would work together to design and build the UK's first significant direct air capture (DAC) facility, with a capacity of 0.5 to 1 MTPA.
What's Required to Make Carbon Capture and Storage Possible?
Carbon capture can overcome financial challenges and provide a competitive solution in order to achieve net-zero targets with strong industry engagement, government backing, and innovative supply chain solutions. There are three primary factors that make the future of carbon capture more promising than ever, despite a number of headwinds.
The potential of carbon capture is being embraced by heavy industries.
Governments all throughout the globe are in favor of carbon capture.
Collaboration between industries is producing inventive, more affordable solutions.