Exploring Future Innovations and Trends in Carbon Capture Technology

11 min readMay 9, 2024

Market Overview of Carbon Capture, Utilization and Storage (CCUS)

Carbon Capture, Utilization, and Storage (CCUS) is a pivotal technology in the fight against global warming. Reducing carbon dioxide emissions plays a crucial role in mitigating climate change. The process involves three key stages: capturing CO2 at its source, utilising the captured CO2 for industrial processes, and securely storing it underground. This technology is particularly vital for sectors that are challenging to decarbonise, such as cement, steel, and chemicals. Despite its potential, CCUS faces significant hurdles, including high operational costs, substantial energy demands, and the need for extensive infrastructure. There are also concerns about the long-term stability of storage sites and the environmental risks associated with potential CO2 leakage. To overcome these challenges, extensive efforts are underway globally to enhance the technology’s efficiency, safety, and cost-effectiveness. These efforts include governmental incentives, robust research and development initiatives, and strengthened international collaboration to scale up CCUS deployment. Such global endeavours are instrumental in advancing CCUS technologies to meet climate targets effectively.

Here’s a breakdown of each component:

Carbon Capture refers to capturing CO2 emissions from sources such as power plants or industrial processes before they are released into the atmosphere. CO2 can be captured directly from the fuel combustion source using various technologies, including pre-combustion, post-combustion, and oxy-fuel combustion.
Carbon Utilisation: Carbon dioxide (CO2) becomes a versatile resource once captured. It can be used for many purposes, showcasing the potential of carbon capture, utilisation, and storage (CCUS) technology. The possibilities are vast and inspiring, from enhancing oil recovery (EOR) to serving as a raw material in chemical productions or even being converted into fuel.
Carbon Storage: Carbon capture and storage is a process that involves storing carbon dioxide (CO2) for a long period to prevent its release into the atmosphere. This is typically done through geological storage, where CO2 is injected into underground geological formations, such as exhausted oil and gas fields, deep saline aquifers, or unmineable coal seams. The main objective is to ensure that the CO2 is safely stored underground, where it can remain permanently.

The global CCUS market is expected to be over US$10 Billion by 2030 and is estimated to grow at a CAGR of more than 15% from 2024 to 2030.

Current Challenges in the Market of CCUS

The Carbon Capture, Utilization, and Storage (CCUS) market is crucial for reducing carbon emissions but faces several challenges. Key issues include technological advancements, cost reduction, regulatory hurdles, and public acceptance. Experts believe the primary technical challenge lies in converting captured CO2 into useful products. A collaborative approach requires governments, industries, and other stakeholders to work together. This cooperation will help improve technologies, decrease costs, and create favourable regulatory environments. Such a collective effort is vital, emphasising the crucial role of each stakeholder in achieving a sustainable future.

Here are the key challenges currently facing the CCUS market:

High Costs: The cost barrier associated with CCUS technologies, particularly carbon capture and storage, makes it challenging for companies to adopt them without financial incentives or regulatory support.
Technology Maturity: Some applications, such as extracting CO2 from natural gas processing, have been in use for a while and are well established. However, other applications, including direct air capture or those used in high-emission industries like power generation, still require additional development and demonstration. Additionally, the technology for transporting, storing, and using captured CO2 continuously evolves.
Market Competitiveness: Several products produced using captured CO2, such as ethanol or sustainable aviation fuel, are yet to become competitive with conventional products. This lack of competitiveness is primarily due to the high costs associated with their production and market barriers, including industry standards that do not favour CO2-based products.
Infrastructure Development: Significant infrastructure development, including capture, transportation, and storage facilities, is required to deploy CCUS technologies successfully. Coordinating the timing and location of these developments poses a logistical challenge.
Community and Regulatory Challenges: The success of CCUS (Carbon Capture, Utilization and Storage) projects greatly relies on community support and effective engagement. In the past, some projects had to be cancelled or relocated due to a lack of community support. Additionally, there are significant regulatory obstacles, especially regarding the geologic storage of CO2 and land access.
Safety Concerns: Safety concerns arise when storing CO2 due to potential leaks and risks to health and the environment posed by storage site integrity.

Emerging Business Trends and Impact of CCUS

Carbon Capture, Utilization, and Storage (CCUS) technologies are not just a trend but a necessity in the urgent battle against climate change. As companies and governments ramp up their sustainability efforts, CCUS is crucial in reducing carbon emissions. These technologies are not just a part of environmental strategies but are becoming the backbone, with their development poised to impact multiple industries significantly. The integration of CCUS presents challenges and opportunities for businesses striving to meet global sustainability goals. As CCUS technologies advance, their role in corporate and governmental climate initiatives is set to expand, reshaping economic sectors worldwide.

Here are some notable business trends and the impacts of CCUS:

Emerging Business Trends

Investment in Technology and Innovation: Corporations significantly enhance Carbon Capture, Utilization, and Storage (CCUS) technologies, focusing on more efficient and cost-effective methods. This includes advancements in capture techniques, utilisation processes that transform captured CO2 into valuable products, and innovative storage solutions. Startups specialising in CCUS technologies are attracting substantial investments from stakeholders committed to green technology.
Strategic Partnerships and Collaborations: Partnerships increasingly thrive across diverse sectors, including energy, manufacturing, and technology, as entities combine their strengths to implement Carbon Capture, Utilization, and Storage (CCUS) solutions. This cooperative approach highlights the communal responsibility and joint endeavour necessary to address climate change. Moreover, collaborations between industry leaders and academic institutions are crucial in advancing research and development initiatives.
Regulatory and Policy Support: Governments around the globe are not merely promoting but are also instituting robust policies to facilitate the uptake of Carbon Capture, Utilization, and Storage (CCUS) technologies. These initiatives extend beyond basic encouragement, encompassing tax incentives, subsidies, and legislative support. Such governmental endorsement is essential for hastening the adoption of CCUS technologies and propelling the shift towards a sustainable future. Furthermore, there is a growing inclusion of CCUS in international agreements and protocols, which is a critical component of national strategies to reduce carbon emissions.
Expansion into New Markets: As Carbon Capture, Utilization, and Storage (CCUS) technology advances, its application extends beyond its traditional base in the energy sector to encompass new industries. These include cement manufacturing, steel production, and even the beverage sector for carbonation purposes.
Sustainability Reporting and Transparency: Companies increasingly highlight their dedication to reducing emissions and advancing their environmental objectives by featuring Carbon Capture, Utilization, and Storage (CCUS) initiatives in their sustainability reports. Both investor decisions and public trust are now more dependent on the transparency and effectiveness of these CCUS operations and outcomes.

Impact of CCUS

Reduction in Greenhouse Gas Emissions: Carbon Capture, Utilization, and Storage (CCUS) is a critical technology that effectively mitigates CO2 emissions from significant sources such as heavy industries and power generation facilities, which are pivotal in addressing global warming.

Economic Opportunities: Carbon Capture, Utilisation, and Storage (CCUS) extends beyond merely mitigating emissions and fosters significant business opportunities. For instance, CO2 utilisation involves converting captured CO2 into commercially valuable products like synthetic fuels, construction materials, and resources for enhanced oil recovery. This innovation and economic expansion avenue is a primary motivation for numerous enterprises and investors within the CCUS domain. Moreover, CCUS installations can create substantial employment prospects, particularly in the regions where they are established and operated.
Environmental and Social Impacts: Carbon Capture, Utilisation, and Storage (CCUS) can reduce CO2 emissions markedly. However, it is imperative to acknowledge and address associated environmental risks. These include the impact of CO2 storage on surrounding environments, the possibility of CO2 leakage, and the substantial energy demands of CCUS processes. A transparent discussion of these risks is vital for informed decision-making and proactive risk management. Additionally, the technology’s impact on water resources and local ecosystems, particularly at storage sites, requires careful consideration to prevent adverse effects.
Market Dynamics and Competitiveness: Companies implementing Carbon Capture, Utilization, and Storage (CCUS) technologies can secure a competitive advantage, particularly in sectors subject to stringent carbon emissions regulations. Those not adopting CCUS may encounter regulatory challenges or competitive disadvantages, potentially altering market dynamics.

The Indian Market

India’s steadfast commitment to reducing carbon emissions and heavy reliance on fossil fuels underscores the increasing significance of Carbon Capture, Utilization, and Storage (CCUS) in the Indian market. CCUS’s potential in India is vast, promising a future where carbon emissions are significantly reduced and energy security is enhanced.

Government Initiatives and Policy Framework: The Indian government recognises the potential of Carbon Capture, Utilization, and Storage (CCUS) technologies in achieving its climate targets and is actively formulating policies to support their development and deployment. Including CCUS in the government’s strategic plans enhances energy security and reassures stakeholders of a supportive policy environment.
Research and Development: India actively participates in research and development to advance CCUS (Carbon capture, utilisation, and storage) technologies. Esteemed institutions such as the Indian Institute of Technology and the Council of Scientific and Industrial Research are at the forefront of developing more efficient and cost-effective methods for capturing carbon.
Industry Engagement: The active involvement of key industries such as cement, steel, and energy in India is pivotal in the large-scale testing and implementation of CCUS. Given their significant CO2 emissions, these industries have a unique opportunity to reduce greenhouse gases through CCUS adoption.
International Collaboration: India collaborates with other countries to advance CCUS technologies. Initiatives like the U.S.-India Strategic Clean Energy Partnership share knowledge and resources. While adopting carbon capture, utilisation, and storage (CCUS) in India is challenging, these hurdles also present opportunities for innovation and significant investment in the sector. The high costs, technological complexities, and infrastructural requirements can catalyse change, driving the development of more efficient and cost-effective CCUS methods.
Future Prospects: If India gets the right policy support and the industry actively participates, Carbon Capture, Utilization, and Storage (CCUS) can be an essential tool to reduce climate change impacts while promoting economic growth. The development of CCUS is expected to speed up with the maturation of technologies and through more pilot projects that demonstrate its viability.

Key Use Cases and Applications

Carbon Capture, Utilization, and Storage (CCUS) technologies are crucial for reducing global carbon emissions. These technologies capture carbon dioxide (CO2) from industrial and power generation processes. They either repurpose the CO2 in other processes or store it underground to prevent its release into the atmosphere. Implementing CCUS is key to transitioning to a lower-carbon economy, supporting the achievement of international climate goals. By expanding and integrating CCUS technologies, industries and nations can meet emission reduction targets and significantly cut global CO2 emissions. This advancement is essential for a sustainable environmental future.

Here are the key use cases and applications of CCUS:

Power Generation: The widespread use of CCUS in power plants, particularly those fueled by coal and natural gas, is a significant development. It effectively captures CO2 emissions produced during power generation, substantially reducing the greenhouse gases released into the atmosphere.

In a pioneering move, it collaborates with Svante to develop and commercialise solid sorbent-based carbon capture technologies for natural gas power generation, showcasing its dedication to innovative CCUS solutions.

Industrial Processes: Industries such as cement, steel, and chemical manufacturing, major CO2 emitters, can significantly reduce their environmental impact through CCUS. This technology captures these emissions directly from industrial plants, offering a hopeful solution to mitigate climate change.

Aker Solutions, a prominent player in the industry through its subsidiary Aker Carbon Capture, is dedicated to capturing CO2 from waste flue gases in industries such as oil refineries and cement plants, significantly contributing to mitigating CO2 emissions.

Hydrogen Production: Blue hydrogen production uses fossil fuels that capture and store CO2 emissions. This application is critical for making hydrogen production more sustainable until green hydrogen, produced via electrolysis powered by renewable energy, becomes more economically feasible.

Siemens Energy, a key player in the field, has developed innovative technologies such as the Silyzer. This technology is instrumental in efficient green hydrogen production via Proton Exchange Membrane (PEM) electrolysis. Siemens Energy’s significant increase in production capacities is a testament to its commitment to supporting large-scale green hydrogen production.

Enhanced Oil Recovery (EOR): CO2 captured through carbon capture, utilisation and storage (CCUS) can be utilised in enhanced oil recovery by injecting it into oil fields to enhance pressure and improve oil extraction rates, thus not only storing CO2 but also improving oil production.

Equinor (Norway): A beacon of sustainability, Equinor is a leader in CCUS technologies and has implemented several projects to reduce CO2 emissions through enhanced oil recovery techniques. This provides reassurance about the industry’s commitment to a greener future.

Synthetic Fuel Production: An emerging area is utilising CO2 to produce synthetic fuels, such as synthetic diesel or methanol. These fuels can be used in existing engines and infrastructure, providing a lower-carbon alternative to traditional fossil fuels.

Mitsubishi Heavy Industries (MHI): Known for its technical capabilities and global presence, MHI is active in various CCUS projects, including strategic partnerships aimed at exploring carbon capture and storage feasibility in the Asia Pacific region

Building Materials: Captured CO2 can be used to manufacture building materials such as concrete. Injecting CO2 into concrete permanently stores it and enhances the material’s properties.

Fluor is known for its extensive expertise in engineering, procurement, and construction of carbon capture projects. It provides a wide range of products and robust business strategies.

Agriculture: Another beneficial application is using CO2 in agricultural practices, such as greenhouses, to promote plant growth. Plants absorb CO2 during photosynthesis, leading to faster growth and higher yields.

Syngenta: Syngenta, a leading agricultural company, is committed to sustainable agriculture and investing in technologies to mitigate climate change impacts, including CCUS. They are involved in researching and developing crop protection products, seeds, and digital solutions that promote carbon sequestration and reduce emissions in agriculture.

Geological Storage: Beyond utilisation, storage is a critical component of CCUS, where CO2 is injected into underground geological formations such as depleted oil and gas fields or deep saline aquifers, securely storing it away from the atmosphere for thousands of years.

Chevron: Chevron has been involved in CCUS research and projects, including initiatives related to geological storage, as part of their efforts to address climate change and reduce emissions

Ocean Storage: Although proposals exist to store CO2 in the deep ocean, this is still experimental and controversial due to potential ecological impacts. The hope is that the CO2 will remain trapped under pressure.

ExxonMobil: ExxonMobil has been involved in CCUS research and development for years and may have explored ocean storage options.

Our Perspective

Carbon Capture, Utilization, and Storage (CCUS) technologies are pivotal in the global transition towards a low-carbon economy. As industries and nations strive to meet ambitious climate goals, CCUS provides a viable solution to reduce carbon emissions from industrial processes and fossil fuel power generation. The market for CCUS is witnessing substantial growth, driven by increased regulatory pressures and incentives for carbon reduction. This growth is further fueled by technological advancements that enhance the efficiency and economic viability of capturing and utilising CO2. Notably, sectors such as power generation, cement production, and steel manufacturing are key areas CCUS can significantly impact, making it a critical component in decarbonising these high-emission industries. This progress instils hope for a cleaner, more sustainable future.

Furthermore, the market dynamics of CCUS are influenced by policy frameworks and financial support from governments worldwide. For example, carbon pricing mechanisms and subsidies are instrumental in promoting the adoption of CCUS technologies. The future of the CCUS market also hinges on developing a robust infrastructure for transporting and storing captured carbon safely and efficiently. As more stakeholders, including energy companies and governments, invest in CCUS projects, collaboration and innovation are expected to rise, leading to more scalable and cost-effective solutions. This collaborative approach, driven by the collective determination to combat climate change, is essential for the CCUS sector to overcome technical and economic challenges and realise the potential as a cornerstone of sustainable industrial practices.

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