Carbon capture and storage market to reach $6.6bn by 2034

Driven by the energy, heavy industry and power generation sectors, the global carbon capture and storage market could reach $6.6bn by 2034, supported by an annual growth rate of 5.8%.

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The global carbon capture and storage (CCS) market is valued at $3.7bn in 2024 and is projected to grow to $6.6bn by 2034. This expansion is supported by the increasing integration of CCS technologies in electricity generation, the oil and gas sectors, and heavy industries such as cement and steel.

Technologies and fields of application

Advances in capture techniques, including solvent absorption, membrane separation and cryogenic processes, are improving system reliability while lowering operational costs. These innovations are accompanied by improvements in CO₂ compression, transportation and geological storage. Demand for such solutions is increasing in regions where climate policies mandate short-term emission reduction targets.

Operational challenges and industry responses

CCS development faces several barriers. Investment and operating costs remain high, and CO₂ transport infrastructure is still limited in many areas. Regulatory uncertainties also hinder initiatives. To address these issues, sector players are relying on public-private partnerships and research and development efforts to improve project profitability.

Regulatory framework and financial support

The implementation of carbon pricing mechanisms, such as emissions taxes and cap-and-trade schemes, is encouraging companies to adopt CCS technologies. At the same time, initiatives like the US Section 45Q tax credit and the European Union Innovation Fund provide financial support to capture projects. Strict standards, such as those set by the US Environmental Protection Agency and the EU CCS Directive, regulate geological storage and ensure operational safety.

Growth prospects through enhanced oil recovery

Using captured CO₂ in enhanced oil recovery (EOR) applications offers a major growth lever. This method, which involves injecting CO₂ into depleted oil fields to extract residual volumes, benefits from existing infrastructure and the investment capacities of oil companies. EOR also allows CCS costs to be offset by immediate added value, fostering adoption in fossil-fuel-rich regions.

GE Vernova and YTL PowerSeraya will assess the feasibility of capturing 90% of CO₂ emissions at a planned 600-megawatt gas-fired power plant in Singapore.
The carbon removal technology sector is expanding rapidly, backed by venture capital and industrial projects, yet high costs remain a significant barrier to scaling.
A Wood Mackenzie study reveals that the EU’s carbon storage capacity will fall more than 40% short of the 2030 targets set under the Net Zero Industry Act.
A bilateral framework governs authorization, transfer and accounting of carbon units from conservation projects, with stricter methodologies and enhanced traceability, likely to affect creditable volumes, prices and contracts. —
Carbon Direct and JPMorganChase have released a guide to help voluntary carbon market stakeholders develop biodiversity-focused projects while meeting carbon reduction criteria.
Japan and Malaysia have signed a preliminary cooperation protocol aiming to establish a regulatory foundation for cross-border carbon dioxide transport as part of future carbon capture and storage projects.
Green Plains has commissioned a carbon capture system in York, Nebraska, marking the first step in an industrial programme integrating CO₂ geological storage across multiple sites.
The price of nature-based carbon credits dropped to $13.30/mtCO2e in October as a 94% surge in September issuances far outpaced corporate demand.
Article 6 converts carbon credits into a compliance asset, driven by sovereign purchases, domestic markets, and sectoral schemes, with annual demand projected above 700 Mt and supply constrained by timelines, levies, and CA requirements.
The GOCO2 project enters public consultation with six industrial players united around a 375 km network aiming to capture, transport and export 2.2 million tonnes of CO2 per year starting in 2031.
TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.

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