The global carbon capture, utilisation and storage (CCUS) market is set to reach $51.6bn by 2050, according to new analysis from Astute Analytica. This projected expansion reflects heightened global commitment to reducing carbon emissions, with governments and industries investing heavily in CCUS technologies to combat the environmental impacts of industrial activities.
The report highlights CCUS as a key technology in achieving carbon neutrality by 2050, particularly as industries face mounting pressure to align with international climate targets.
According to Astute Analytica, “The CCUS market is poised for robust growth as more industries look to decarbonise and meet stricter emissions targets.” The report identifies North America and Europe as leaders in the deployment of CCUS projects, fuelled by supportive government policies and considerable financial backing.
The CCUS process involves capturing carbon dioxide (CO2) emissions from industrial sources before they can enter the atmosphere, subsequently storing or repurposing the captured CO2.
With growing environmental concerns, industries such as power generation, steel, cement and chemicals are embracing these solutions to reduce their carbon footprints. By 2050, it is expected that CCUS technologies will prevent up to 14% of annual global CO2 emissions.
Astute Analytica’s report highlights North America’s dominance in the CCUS market due to policies like the US 45Q tax credit, which incentivises the capture and storage of carbon emissions.
In Europe, the EU’s Green Deal and the UK’s Ten Point Plan are also playing vital roles in accelerating CCUS adoption. The report states, “In North America and Europe, incentives and supportive policies have spurred an unprecedented wave of CCUS projects.”
Several CCUS projects in the US and Europe have leveraged government incentives to advance their initiatives. In the US, Occidental’s 1PointFive project in Texas benefits from the 45Q tax credit, aiming to capture up to one million metric tonnes of CO2 per year, once fully scaled.
In Europe, the Porthos project in the Netherlands, supported by EU funding, plans to transport CO2 emissions from Rotterdam’s industrial area to offshore storage sites.
Additionally, the UK government has pledged £21.7bn ($28.2bn) over 25 years to support CCS projects, including the HyNet North West cluster in Merseyside and the East Coast Cluster in Teesside.
However, the report cautions that while CCUS has garnered global support, challenges remain. High initial investment costs, regulatory hurdles and the lack of widespread infrastructure are among the barriers to CCUS deployment. The report also suggests that for the technology to achieve full potential, ongoing support and further policy frameworks will be necessary.
Asia-Pacific is projected to be a rising market, with growing industrial emissions and government initiatives in countries such as China, India, and Japan driving demand. The report states, “With the industrial sector growing rapidly in Asia-Pacific, the need for CCUS technology is becoming increasingly urgent.”
In addition to capturing emissions, CCUS technology also enables the use of captured CO₂ in products like synthetic fuels, plastics, and concrete. This “utilisation” aspect offers an economic incentive for companies to adopt CCUS, as they can potentially turn a profit from carbon by-products. “Utilisation of CO2 could unlock new revenue streams, making the technology more appealing to industries,” the authors add.
