UK Carbon Capture, Utilization, and Storage (CCUS) Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the UK Carbon Capture, Utilization, and Storage (CCUS) Market 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 Terroterial Greenhouse Gas Emissions

Source: According to Department of Energy Security & Net Zero

The Carbon Capture, Utilization, and Storage (CCUS) market refers to the industry focused on technologies and solutions designed to capture carbon dioxide (CO2) emissions from various sources, utilize the captured CO2 for beneficial purposes, and store it to prevent its release into the atmosphere. This market is integral to UK efforts aimed at mitigating climate change by reducing greenhouse gas (GHG) emissions.

As industrial activities, power generation, and transportation continue to emit substantial amounts of CO2, the UK faces heightened pressure to address its carbon footprint to meet national and international climate goals. The UK government has committed to achieving net-zero greenhouse gas emissions by 2050, a target that necessitates urgent and comprehensive action to reduce CO2 emissions across all sectors.

UK Carbon Capture, Utilization, and Storage (CCUS) Market – Significant Growth Factors

The Carbon Capture, Utilization, and Storage (CCUS) Market presents significant growth opportunities due to several factors:

• Government Commitment and Policy Support: The UK government’s goal of net-zero emissions by 2050 drives the CCUS market, with policies like the Industrial Decarbonization Strategy and Net Zero Strategy emphasizing its role in reducing emissions from hard-to-abate sectors. Financial incentives like the USD 1.2 billion CCUS Infrastructure Fund support project development.

• Increasing CO2 Emissions: The rising levels of CO2 emissions from industrial activities, power generation, and transportation are driving the need for effective mitigation strategies. CCUS provides a solution to capture and store CO2 emissions, particularly from sectors where emissions are difficult to reduce through other means.

• Rising Technology Advancements: Improved capture technologies, including efficient solvents and membrane-based systems, are reducing CO2 capture costs and energy requirements. Enhanced storage and monitoring systems ensure safe, permanent CO2 storage, boosting public and regulatory confidence.

• Growing Industrial and Commercial Viability: The economic feasibility of CCUS is improving as technologies become more cost-effective. The potential for CO2 utilization in enhanced oil recovery (EOR), chemical production, and building materials provides additional revenue streams, enhancing the commercial attractiveness of CCUS projects.

• Increasing Public and Corporate Commitment to Sustainability: Growing awareness of climate change and its impacts is driving public and corporate commitment to reducing carbon footprints. Many companies are setting ambitious sustainability targets and incorporating CCUS into their decarbonization strategies to meet these goals.

• Development of Industrial Clusters: The creation of CCUS industrial clusters, such as those in Teesside and Humber, offers significant opportunities for shared infrastructure and economies of scale. These clusters can capture CO2 from multiple sources, transport it via shared pipelines, and store it in nearby geological formations, reducing overall costs and increasing efficiency.

• Financial Incentives and Grants: The government has introduced various financial incentives, grants, and subsidies to support the development and deployment of CCUS projects. These financial measures help reduce the initial capital costs associated with CCUS technologies.

UK Carbon Capture, Utilization, and Storage (CCUS) Market – Mergers and Acquisitions

The Carbon Capture, Utilization, and Storage (CCUS) market has experienced numerous mergers and acquisitions in recent years, as companies aim to broaden their market presence and capitalize on synergies to enhance their product offerings and profitability. Noteworthy examples of mergers and acquisitions in the CCUS market include.

• In May 2024, Worley partnered with Bayou Bend CCS LLC to design and evaluate CO2 gathering, handling, and sequestration facilities for the Gulf Coast’s Bayou Bend CCS carbon capture and storage project, aiming to reduce regional CO2 emissions and support net zero goals.

• In March 2024, SLB agreed to merge its carbon capture business with Aker Carbon Capture to accelerate industrial decarbonization at scale. The deal will leverage ACC’s commercial carbon capture product offering and SLB’s new technology developments. SLB will own 80% of the combined business, while ACC will own 20%. The transaction is subject to regulatory approvals.

• In March 2023, Baker Hughes and Horisont Energi signed a memorandum of understanding for the Polaris carbon storage project off Norway. The agreement aims to minimize the carbon footprint, cost, and delivery time of carbon capture, transport, and storage (CCTS). The Polaris project, part of Horisont Energi’s “Barents Blue” project, is expected to have a total carbon storage capacity of over 100 million tons.

These mergers and acquisitions helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Carbon Capture, Utilization, and Storage (CCUS) Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

UK Carbon Capture, Utilization, and Storage (CCUS) Market – Significant Threats

The Carbon Capture, Utilization, and Storage (CCUS) Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• High Cost and Economic Viability: The high initial capital expenditure for CCUS infrastructure, coupled with operational costs related to energy consumption and maintenance, makes it difficult to compete with other low-carbon technologies. Reducing costs is crucial to make CCUS more attractive.

• Technological Challenges: Despite advancements, capturing CO2 from various industrial sources remains technically challenging due to unique industrial processes requiring tailored capture technologies. Long-term storage integrity and safety are crucial, as leakage or unintended release could undermine CCUS’s effectiveness and pose environmental and safety risks.

• Regulatory and Policy Uncertainty: Consistent and supportive policies are crucial for the success of CCUS projects, as changes can deter investment and slow development. Securing permits and regulatory approvals can be complex and time-consuming, involving multiple bodies and environmental assessments.

• Public Perception and Social Acceptance: Public safety concerns and limited awareness about CO2 storage can lead to project delays and opposition. Effective communication and education are crucial to building public trust and support for CCUS initiatives and addressing potential leakage risks and seismic activity.

• Infrastructure and Logistical Challenges: The development of a comprehensive CO2 transportation network, including pipelines and shipping routes, is crucial for connecting capture sites with storage locations but can be logistically challenging and expensive. Identifying suitable geological storage sites is a critical challenge.

• High Risk of CO2 Leakage: One of the primary safety concerns is the risk of CO2 leakage from storage sites. If CO2 were to escape from geological storage, it could potentially migrate to the surface, posing risks to human health, ecosystems, and the environment. This leakage could undermine public trust and confidence in the safety and reliability of CCUS technologies.

Category-Wise Insights

By Technology:

• Pre-Combustion Capture: Pre-combustion capture technology represents a significant segment within the UK’s Carbon Capture, Utilization, and Storage (CCUS) market. This technology involves capturing carbon dioxide (CO2) emissions before the combustion process occurs, typically in the context of fossil fuel-based power generation and industrial applications. In pre-combustion capture, fuel is converted into synthesis gas (syngas) through processes such as gasification or steam reforming. The resulting syngas, consisting mainly of hydrogen (H2) and carbon monoxide (CO), undergo a separation process to capture the CO2 before combustion. Pre-combustion capture offers several advantages, including higher capture efficiency and lower energy penalties compared to post-combustion capture methods.

• Oxy-Fuel Combustion Capture: Oxy-fuel combustion capture technology is another key segment in the UK’s CCUS market, particularly relevant to power generation and industrial processes reliant on combustion. This technology involves burning fossil fuels in a high-purity oxygen (O2) environment instead of air, resulting in a flue gas predominantly composed of CO2 and water vapor. The CO2 is then separated from the water vapor and other impurities for capture and subsequent storage or utilization. Oxy-fuel combustion offers advantages such as higher CO2 concentrations in the flue gas, facilitating more efficient capture, and potential cost savings due to reduced flue gas treatment requirements.

• Post-Combustion Capture: Post-combustion capture technology represents a prominent segment within the UK’s CCUS market, particularly applicable to existing fossil fuel-based power plants and industrial facilities. This technology involves capturing CO2 from the flue gas emitted after combustion has occurred. Various capture techniques such as chemical absorption, adsorption, and membrane separation are employed to selectively capture CO2 from the flue gas stream. Post-combustion capture offers advantages such as retrofitting potential for existing infrastructure and flexibility in deployment across a wide range of industrial processes. However, it typically incurs higher energy penalties and operational costs compared to pre-combustion and oxy-fuel combustion capture methods.

By Application

• Oil and Gas: The oil and gas industry produces substantial CO2 emissions during extraction, refining, and processing operations. CCUS technologies offer a promising solution to mitigate these emissions by capturing CO2 at various stages of the production process. Captured CO2 can be utilized for enhanced oil recovery (EOR), wherein it is injected into depleted oil reservoirs to increase oil production. Additionally, CO2 can be safely stored underground, contributing to long-term carbon sequestration efforts. The oil and gas industry’s adoption of CCUS technologies aligns with broader sustainability goals while enhancing operational efficiency and extending the lifespan of existing oil fields. Government incentives and regulatory frameworks supporting CCUS deployment further drive investment in this application segment, positioning the oil and gas sector as a key driver of CCUS adoption in the UK.

• Power Generation: Power generation represents a crucial application segment in the UK’s CCUS market, given the significant role of fossil fuels in electricity generation. Coal and natural gas-fired power plants are major sources of CO2 emissions, making them prime candidates for CCUS integration. Carbon capture technologies enable the capture of CO2 emissions from power plant flue gases, preventing their release into the atmosphere. Captured CO2 can be utilized in EOR or safely stored underground, contributing to emissions reduction and climate change mitigation efforts.

• Iron and Steel: The iron and steel industry constitutes a significant application segment within the UK’s CCUS market, characterized by high CO2 emissions resulting from steel production processes. CCUS technologies offer a viable solution to address these emissions by capturing CO2 from blast furnaces and other steelmaking processes. Captured CO2 can be utilized in various applications such as EOR, chemical synthesis, or safely stored underground. Integration of CCUS in the iron and steel industry not only reduces carbon emissions but also enhances the sector’s competitiveness by aligning with sustainability goals and regulatory requirements.

• Chemical and Petrochemical: CCUS technologies offer opportunities to mitigate these emissions by capturing CO2 from various chemical manufacturing processes, including ammonia production, hydrogen production, and ethylene production. Captured CO2 can be utilized in chemical synthesis, such as producing methanol or urea, or stored underground for long-term carbon sequestration. Integration of CCUS in the chemical and petrochemical industry aligns with sustainability objectives, enhances process efficiency, and ensures compliance with emissions regulations. Government incentives and industry partnerships drive investment in CCUS technologies, fostering innovation and accelerating the transition towards sustainable chemical production.

• Cement: The cement industry represents a notable application segment within the UK’s CCUS market, characterized by substantial CO2 emissions resulting from the calcination process and fossil fuel combustion in cement kilns. CCUS technologies offer a viable solution to mitigate these emissions by capturing CO2 from cement production facilities. Captured CO2 can be utilized in concrete curing processes or safely stored underground, contributing to emissions reduction and climate change mitigation efforts. Integration of CCUS in the cement industry aligns with sustainability goals, enhances the sector’s environmental performance, and ensures compliance with emissions regulations. Government support through incentives and carbon pricing mechanisms incentivizes cement producers to invest in CCUS technologies, driving market growth and innovation in this application segment.

• Others: UK industries like waste-to-energy, pulp and paper, and food and beverage processing are utilizing CCUS technologies to capture CO2 from flue gases or process streams. These sectors require tailored solutions due to unique CO2 emission sources and process characteristics. The captured CO2 can be transported underground or used in various applications, depending on market demand and regulatory requirements. The deployment of CCUS technologies is crucial for achieving net-zero emissions targets.

By Services

• Capture: The UK’s Carbon Capture, Utilization, and Storage (CCUS) market is focusing on the capture segment to reduce carbon emissions. Technologies like post-combustion capture, pre-combustion capture, and oxyfuel combustion are used to capture CO2 at its source. With increasing regulatory pressures and the need to decarbonize industries, companies are developing cost-effective and scalable solutions. Collaborations between industry players and government initiatives are driving innovation to make carbon capture economically viable across various sectors.

• Transportation: The transportation segment within the UK’s CCUS market encompasses the infrastructure and logistics required to transport captured CO2 from the capture sites to storage facilities or utilization sites. Efficient transportation systems are essential to ensure the safe and reliable transfer of CO2 over short or long distances. Pipelines are the primary mode of transportation for CO2 due to their cost-effectiveness and reliability. However, other methods such as shipping and road transport may be employed based on the geographical location of the capture and utilization/storage sites.

• Utilization: The utilization segment of the UK’s CCUS market focuses on finding productive applications for captured CO2 rather than simply storing it underground. Utilization technologies convert CO2 into valuable products such as chemicals, fuels, building materials, and other commodities, thereby creating economic value while reducing greenhouse gas emissions. Various innovative processes, including carbon utilization in concrete production, enhanced oil recovery, and synthetic fuel synthesis, are being explored to maximize the commercial viability of CO2 utilization.

• Storage: In the context of the UK’s CCUS market, the storage segment involves the secure and permanent underground storage of captured CO2 to prevent its release into the atmosphere. Geological storage formations, such as depleted oil and gas reservoirs, saline aquifers, and unmendable coal seams, serve as repositories for CO2 storage. The storage process involves injecting CO2 into these geological formations at suitable depths and pressures, where it undergoes mineralization and remains trapped over geological timescales. Robust monitoring, verification, and accounting measures are implemented to ensure the integrity and safety of CO2 storage sites.

Report Scope

Competitive Landscape – UK Carbon Capture, Utilization, and Storage (CCUS) Market

The UK Carbon Capture, Utilization, and Storage (CCUS) Market is highly competitive, with a large number of manufacturers operating in the UK. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the Carbon Capture, Utilization, and Storage (CCUS) market are adopting innovation and development to differentiate themselves and gain traction. These players often focus on unique strategies, such as technology advancements, collaborations and partnerships, demonstration projects, risk mitigations, and rising public awareness and education.

Key players often collaborate with governments and industry partners to develop and deploy demonstration projects across various sectors, showcasing the effectiveness of CCUS in reducing emissions and supporting sustainable development. These projects serve as tangible examples of CCUS applications, instilling confidence among investors and policymakers and paving the way for broader market adoption.

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