Global Market for Carbon Capture, Utilization, and Sequestration (CCUS) Is Expected to Grow at a Compound Annual Growth Rate of 37% Through 2031
High project costs are one of the primary obstacles to the successful scaleup of CCUS capacity
A new report from Guidehouse Insights analyzes the global market for Carbon Capture, Utilization, and Sequestration (CCUS). The capacity and spending estimates in the report are segmented by region and carbon capture technology stage, and span from 2022-2031. Capture costs by point source types are also charted. The report utilizes Guidehouse Insights’ forthcoming Global CCUS Project Tracker.
CCUS has increasingly been recognized as an essential component of decarbonization strategies including all pathways outlined by the United Nation's Intergovernmental Panel on Climate Change. According to a new report from Guidehouse Insights, global CCUS capacity is expected to grow at a CAGR of 37.3%, from 46.5 Mtpa in 2022 to 804.2 Mtpa in 2031.
“In heavy-emitting industries that are difficult to decarbonize, such as cement making and steel making, CCUS stands out as one of the only viable options to mitigate emissions,” says Peter Marrin, senior research analyst with Guidehouse Insights. “While learning rates have cut costs since the first CCUS project went online 50 years ago, a much steadier and more robust queue of projects is needed for economies of scale to further reduce expenses.”
However, existing capacity, announced new projects, and investment spending in recent years have been far less than what is needed for the rapid global deployment of CCUS capacity that is necessary to achieve net-zero global carbon dioxide emissions by 2050. High project costs predominantly stem from expensive carbon dioxide capture equipment and are one of the primary obstacles to the successful scaleup of CCUS capacity. In the meantime, several companies—many from the oil & gas industry—have partnered in recent years to share knowledge and explore opportunities in CCUS. These relationships, along with dozens of proposed CCUS hubs around the world, could cut costs further, according to the report.
The report, Carbon Capture, Utilization, and Sequestration, provides capacity and spending estimates for four carbon capture technology stages: pre-combustion, post-combustion, oxy-fuel combustion, and direct air capture. An outlook is provided for major global regions and cover 2022-2031. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Carbon Capture, Utilization, and Sequestration, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.