Fossil Fuels Only Part Of The Equation
The global carbon capture and storage (CCS) market is expected to exceed US $8.75 billion by 2025, according to a new report. The rising global energy demand along with the growing awareness towards reducing carbon dioxide emissions in most of the industrial economies is anticipated to drive the CCS market.
Currently, meaningful industrial CO2 capture is required particularly in the power sector. The increasing adoption of gas injection techniques for enhanced oil recovery (EOR) across several matured petroleum reserves globally is expected to be one of the key factors driving CCS demand.
Enhanced oil recovery (EOR) is expected to account for the highest demand with a net worth estimated to reach over 6.18 billion by 2025. Prevalence of factors such as depleting oil reserves globally coupled with heavy dependence on crude oil imports mainly in the Asia Pacific region is anticipated to be one of the major reasons driving the demand for EOR activities globally.
CCS requirement in high purity industrial applications such as natural gas processing, coal to liquid (CTL), ammonia, and hydrogen production facilities holds immense potential for project demonstration. The segment is estimated to witness the fastest growth in terms volume of CO2 captured. Carbon capture and storage demand in the industrial sector is expected to grow at a CAGR of 6.2% from 2016 – 2025.
Further key findings from the report suggest:
- The global CCS demand exceeded 61 million t in 2015 and is estimated to grow at a CAGR of 6% from 2016 – 2025.
- Post-combustion capture technology is anticipated to grow at the highest CAGR of 15.6% from 2016 – 2025.
- Pre-combustion capture technology demand in the US is estimated to exceed a total volume of 80 million t by 2025.
- Stringent regulatory framework for cleaner environment coupled with increasing CO2 injection EOR technique in most of the depleted hydrocarbon basins are expected to be the major factors driving demand in North America.
- The Asia Pacific CCS industry is expected to grow at the highest CAGR of 9.7% from 2016 – 2024.
- Key players include Shell CANSLV, AkerSolutions, Statoil, Linde Engineering, Mitsubishi Heavy Industries and Sulzer.
- ACTL with North West Sturgeon Refinery CO2 Stream in Canada, Future Gen 2.0 Project in US, Preheat CCS & Don Valley Power Projects in UK are some of the upcoming projects over the next few years.