Carbon capture and storage (CCS) is a set of technologies that can greatly reduce carbon dioxide (CO2) emissions from fossil fuel power plants and industrial processes. With CCS, the CO2 captured is transported to a storage location where it is then injected underground, avoiding atmospheric release. CCS technologies offer an important bridge between fossil fuels and renewable energy, and will play a key role in reducing carbon emissions to meet reduction targets globally. The global Carbon Capture and storage Market is estimated to be valued at US$ 5.9 billion in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2033, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing government support programs for scaling up CCS technologies is one of the key trends driving the growth of carbon capture and storage market. Many governments have introduced policies and initiatives to incentivize CCS deployment and commercialization through funding and tax credits. For instance, in the US, the FUTURE Act provides tax credits up to $50 per metric ton of carbon dioxide stored, and California's Low Carbon Fuel Standard program awards credits to projects that demonstrate negative carbon intensity through the use of CCS. Similar programs have been launched in the UK, Canada, Australia, and other countries. These government initiatives are proving instrumental in scaling up CCS demonstration projects and making the technology commercially viable. They aim to bridge the economic gap between high capture costs and low carbon prices, and accelerate widespread CCS adoption globally.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the carbon capture and storage market is moderate. High capital requirements for building carbon capture and storage infrastructure pose a barrier for new companies. However, technological advancements are lowering these costs over time.

Bargaining power of buyers: The bargaining power of buyers is high. Carbon capture and storage technologies are not widely adopted yet. Buyers can negotiate on price and demand improved project economics from technology providers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. A few large companies dominate the supply of key equipment, however alternative suppliers are available. Suppliers also compete based on technology performance.

Threat of new substitutes: Technologies that can reduce fossil fuel use or capture emissions at combustion sources pose a threat of substitution.

Competitive rivalry: Competition in the market is intense as large energy and industrial companies strive to develop leadership in carbon capture solutions.

SWOT Analysis
Strengths: Carbon capture and storage technologies allow continued use of fossil fuels while reducing emissions. It is a bridge technology towards decarbonization. Large global projects underway demonstrate commercial viability.

Weaknesses: High capital costs and need for extensive infrastructure. Public perception issues around long term storage of captured CO2. Integration challenges with large industrial facilities.

Opportunities: Growing policy and regulatory support for carbon reductions opens funding avenues. Development of utilization avenues like Enhanced Oil Recovery increases commercialization potential.

Threats: Competing low carbon technologies like renewable energy and hydrogen pose substitution risks. Public opposition to onshore CO2 storage could delay projects. Cost reductions needed for widespread adoption.

Key Takeaways
The Global Carbon Capture And Storage Market Demand is expected to witness high growth over the forecast period supported by policy tailwinds.

The Asia Pacific region, led by China and India, dominates current carbon capture projects owing to widespread coal use and nascent climate policies. The region is also witnessing a rise in carbon utilization demonstrations.

Key players operating in the carbon capture and storage market include Shell, Linde, Fluor, Mitsubishi Heavy Industries, and Aker Solutions. They are investing heavily in scale-up of technologies as well as partnerships for developing integrated carbon capture value chains. Collaboration between energy companies, industrial facilities, and technology developers will be key to commercialization at gigaton scale needed for climate change mitigation through this approach.

For more insights, Read- https://www.ukwebwire.com/carbon-capture-and-storage-market-overview/