Market Trends in CCUS
The Future of CO₂ Capture
Combatting climate change has gained new momentum in recent years. Over 140 countries have set ambitious net-zero targets, many aiming for 2050. However, with nearly 40 billion tons of CO₂ emissions per year, the world faces a major challenge. CCUS (Carbon Capture, Utilization, and Storage) is seen as a key technology for decarbonizing industrial processes.
CCUS: An Evolving Technology
CCUS technologies encompass the capture of CO₂ either directly at the emission source or from the atmosphere. The captured CO₂ is subsequently either stored deep underground or recycled for use in new products. Although CCUS has existed for over 50 years, its application has long been limited to oil-based recovery, where captured CO₂ is injected into oil and gas fields to increase reservoir pressure and extract more oil. The economic viability of other applications seemed lacking. However, the growing awareness of climate change has prompted governments to promote the development and implementation of CCUS technologies.
Despite advancements, usage remains limited. In 2011, only 19 million tons of CO₂ were captured worldwide, but this number rose to 52 million tons annually by 2023. Nevertheless, this only accounts for 0.1 percent of global anthropogenic emissions. Projections suggest that capacity could reach 1.2 billion tons by 2035, still falling short of the requirements for net-zero targets.
Drivers and Challenges of CCUS Development
A significant driver for the growth of CCUS is geological storage.
- Geological Storage: Government mechanisms such as tax incentives have greatly contributed to this momentum. In the United States, for instance, the expansion of the 45Q tax credit has significantly improved the financing framework for CCUS projects. Companies can benefit from credits of up to $85 per ton of CO₂ permanently stored. About half of the world’s planned projects are located in the U.S., highlighting the role of such incentives in fostering innovation and infrastructure.
- New Business Models: At the same time, the business model is evolving from a complete value chain to a division among several players, which increases the flexibility of the projects. Industries with high CO₂ concentrations, such as natural gas processing or ethanol production, are among the pioneers, as the capture costs are lowest here.
- Innovative Technologies: Projects like Direct Air Capture (DAC) offer long-term transformative potential but face challenges such as high costs and energy requirements.
CO₂ Utilization: A Growing Market
The use of captured CO₂ is gaining importance, especially in regions without sufficient storage infrastructure. Applications include:
- Synthetic Fuels: Demand is growing, particularly due to shipping and aviation regulations.
- Building Materials: CO₂ can be recycled in cement and concrete production, promoting sustainable construction methods.
Investments and Global Dynamics
The past decade has seen a significant increase in investment in CCUS. Market analysts report that financing volumes nearly doubled between 2022 and 2023. This development reflects the growing interest of public and private investors. The private sector plays a central role, with startups like Twelve, which converts CO₂ into chemicals and fuels, as well as Svante and CarbonCapture Inc., which develop innovative filtration systems, attracting substantial investment amounts. At the same time, the demand for carbon offset certificates is rising, driven by major companies such as Amazon, Microsoft, and Alphabet.
The introduction of regional and global emissions markets significantly influences CCUS development. In Europe, the Net Zero Industry Act aims to increase annual CO₂ storage to 50 million tons by 2030. Meanwhile, the EU Innovation Fund supports large-scale projects. However, challenges remain, such as building cross-border CO₂ transport infrastructure.
Examples of international cooperation demonstrate how these obstacles can be overcome. The agreement between Denmark, Norway, Belgium, and Sweden on cross-border CO₂ storage serves as a model for future projects.
Future Outlook
By 2035, global capture capacity could rise to over 1 billion tons of CO₂ per year. Geological storage sites will play a central role, particularly in countries with large natural capacities like Norway, the U.S., and Australia. Technologies such as Direct Air Capture promise transformative effects but continue to face challenges such as high costs and energy requirements.
Conclusion
CCUS has the potential to serve not only as a bridging technology but also as a long-term solution for climate protection. Recent advancements in investment, political support, and technological innovation create a solid foundation. However, significant efforts are still needed to achieve net-zero targets by 2050. The coming years will be critical in scaling CCUS from pilot projects to widespread applications, making a decisive contribution to climate stabilization.
Doris Höflich, Market Intelligence Senior Expert
Sources:
- IDTech
- Global CCS Institute
- CaptureMap
- DNV
- AGR
