UK Carbon Capture, Utilization, and Storage (CCUS) Market Size Likely to Reach at a CAGR of 15.69% By 2033

As per the current market research conducted by the CMI Team, the UK Carbon Capture, Utilization, and Storage (CCUS) Market size is expected to record a CAGR of 15.69% from 2024 to 2033. In 2023, the market size is projected to reach a valuation of USD 1.42 Billion. By 2033, the valuation is anticipated to reach USD 5.27 Billion.

UK Carbon Capture, Utilization, and Storage (CCUS) Market: Growth Factors and Dynamics

• Growing Government Policies and Incentives: The UK government has set ambitious climate targets, including achieving net-zero carbon emissions by 2050. Policies such as carbon pricing, tax incentives, and subsidies for CCUS projects are crucial in promoting investment and adoption of CCUS technologies.

• Rising Funding and Investments: The increasing availability of public and private funding for CCUS projects boosts market growth, with government grants, loans, and investment programs supporting infrastructure development. Cost-effectiveness is achieved through continuous advancements in CCUS technologies while growing demand for low-carbon products and services drives companies to invest in CCUS technologies for a competitive edge.

• Technological Advancements: Innovations in carbon capture, utilization, and storage technologies enhance efficiency, scalability, and integration with existing industrial processes. Breakthroughs in materials science, chemical engineering, and process optimization play a significant role in advancing CCUS capabilities.

• Integration with Renewable Energy: Combining CCUS with renewable energy sources, such as bioenergy with carbon capture and storage (BECCS), can create negative emissions, further enhancing the market’s growth potential.

• Increasing demand for CO2-EOR techniques: CO2-EOR can increase oil recovery by up to 30%, reduce greenhouse gas emissions, and generate economic benefits. The UK government supports CCUS technologies, with technological advancements and public awareness increasing demand. Private sector investment, public-private partnerships, and ongoing research make CO2-EOR attractive. The UK actively engages in international cooperation.

• Increasing Demand for Natural Gas: Natural gas is gaining popularity as a cleaner alternative to coal and oil due to its lower CO2 emissions. The UK’s energy mix is increasingly relying on natural gas, highlighting the need for CCUS technologies to manage emissions and contribute to emissions reduction efforts. CCUS can also be integrated into combined heat and power plants for increased sustainability.

• Rising Cleaner Energy Transition: The UK government’s commitment to achieving net-zero carbon emissions by 2050 necessitates a shift from traditional fossil fuels to cleaner alternatives. Clean fuels such as hydrogen and bioenergy are critical to this transition, and CCUS technologies help ensure these fuels can be produced with minimal carbon emissions.

UK Carbon Capture, Utilization, and Storage (CCUS) Market: Partnership and Acquisitions

• In November 2023, Equinor and Captura are partnering to test and scale technology for large-scale, commercial ocean-based carbon dioxide removal plants. The pilot plant, set to be installed in fall 2024, will remove a measurable stream of CO2 from seawater, which will be used for the Northern Lights plant.

• In June 2021, Bechtel partnered with renewable energy company Drax to build Bioenergy with Carbon Capture and Storage (BECCS) power plants globally. Drax, Europe’s largest decarbonisation project, aims to become carbon-negative by 2030. Bechtel will focus on North America and Western Europe, focusing on optimizing plant design for efficiency, performance, and cost.

Report Scope

UK Carbon Capture, Utilization, and Storage (CCUS) Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the UK Carbon Capture, Utilization, and Storage (CCUS) Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Project Delays and Cancellations: The pandemic led to widespread disruptions in supply chains, labor availability, and project financing, causing delays and cancellations of several CCUS projects. Travel restrictions and social distancing measures hindered on-site activities, including construction, maintenance, and inspections.

• Economic Downturn: The economic slowdown caused by the pandemic resulted in reduced industrial activity and lower energy demand. Consequently, investments in CCUS projects, which are often capital-intensive, faced financial constraints as companies prioritized essential operations and cost-cutting measures.

• Funding Challenges: Government budgets were reallocated to manage the public health crisis and economic relief efforts, leading to a temporary reduction in funding and incentives available for CCUS projects. This impacted the financial viability and progression of ongoing and planned projects.

• Emphasis on Green Recovery: As part of the post-pandemic recovery strategy, the UK government has emphasized a green recovery, integrating environmental sustainability into economic revival plans. This includes renewed commitments to net-zero targets and increased support for CCUS as a critical technology for decarbonization.

• Policy and Regulatory Support: The pandemic highlighted the need for resilient and sustainable energy systems. In response, the UK government introduced enhanced policy measures and regulatory frameworks to support CCUS development. Initiatives such as the Ten Point Plan for a Green Industrial Revolution and the North Sea Transition Deal include significant provisions for CCUS investment.

• Increased Public and Private Investment: Recognizing the importance of climate action, both public and private sectors have ramped up investments in CCUS technologies. Governments have announced stimulus packages and funding programs targeting clean energy and CCUS projects, while private investors and corporations are increasingly prioritizing sustainability in their investment portfolios.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Carbon Capture, Utilization, and Storage (CCUS) Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the UK Carbon Capture, Utilization, and Storage (CCUS) Market:

• Royal Dutch Shell PLC
• Linde PLC
• Schlumberger Limited
• Exxon Mobil Corporation
• Honeywell International Inc.
• Flour Corporation
• Equinor ASA
• Halliburton
• TotalEnergies
• Atlas Copco
• Worley
• Fuel Industry UK
• Baker Hughes
• Bechtel Corporation
• NOV
• Others

The UK Carbon Capture, Utilization, and Storage (CCUS) Market is segmented as follows:

By Technology

• Pre-Combustion Capture
• Oxy-Fuel Combustion Capture
• Post-Combustion Capture

By Application

• Oil and Gas
• Power Generation
• Iron and Steel
• Chemical and Petrochemical
• Cement
• Others

By Services

• Capture
• Transportation
• Utilization
• Storage