United States Carbon Capture and Sequestration Market Forecast to Grow at 13.5% CAGR | Key Players: Linde, Climeworks, Mitsubishi Heavy Industries, Shell, Fluor

Market Overview:

The Global Carbon Capture and Sequestration (CCS) Market is projected to grow at a CAGR of 13.5% during 2024-2031. According to the Global CCS Institute, 24 CO2 capture and injection facilities were operational in 2020, with 12 located in the U.S. These facilities operate across five major sectors: fertilizer production, chemical production, hydrogen production, natural gas processing, and power generation. CCS involves a three-step process: capturing CO2 generated by industrial or power generation activities, transporting the CO2, and storing it in underground geologic formations. CO2 can also be utilized in enhanced oil recovery (EOR) to increase production from aging oil fields.

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The process captures emissions from energy-intensive industrial operations, including cement, steel, aluminum, pulp and paper, and refineries, as well as from fossil fuel combustion in power generation. CO2 is primarily transported via pipelines, though trucks, trains, and ships are also used depending on infrastructure and geography. Appropriate storage sites include depleted oil and gas fields, deep saline formations, and unmineable coal seams.

CCS not only reduces industrial and energy-related carbon emissions but also enables carbon removal from the atmosphere through technologies like bio-energy carbon capture and storage (BECCS) and direct air carbon capture and storage (DACCS). Additionally, CCS can act as a platform for low-carbon hydrogen production, contributing to broader decarbonization goals. While fuel combustion emissions have declined in Europe, industrial process emissions remain significant, highlighting the critical role of CCS in achieving climate targets and sustainable industrial operations.

Recent Key Developments:

✅ January 2026: Equinor and Shell announced the expansion of the Northern Lights CCS project in Norway, enhancing CO2 transport and storage capacity to support multiple industrial emitters across Europe.

✅ December 2025: Occidental Petroleum finalized plans to integrate direct air capture (DAC) technology with its CCS operations in Texas, aiming to permanently store millions of tons of atmospheric CO2 annually.

✅ November 2025: TotalEnergies and partners commenced operations at an expanded saline formation CO2 injection site in France, providing industrial-scale carbon capture for cement and chemical producers.

✅ October 2025: Beijing Energy Institute launched a post-combustion carbon capture pilot project at a large coal-fired power station, demonstrating scalable CO2 emission reductions in China's energy sector.

Recent Key Developments: North America / Europe / Asia Pacific
✅ January 2026: Carbon Engineering signed an agreement with a leading U.S. utility to build one of North America's largest DACCS facilities, targeting negative emissions for power generation.

✅ December 2025: The U.S. Department of Energy (DOE) awarded multi-million-dollar grants to support next-generation solvent and sorbent technologies for industrial CO2 capture, improving efficiency and lowering costs.

✅ November 2025: Mitsubishi Heavy Industries initiated a CCS pilot project in Japan integrating carbon capture with hydrogen production, reducing emissions from hard-to-abate industrial sectors.

✅ October 2025: A consortium led by Chevron and Shell completed upgrades to the Gorgon CO2 injection facility in Australia, expanding storage capacity and improving monitoring for long-term sequestration.

Key Players:
Linde AG | Carbfix | Fluor Corporation | Climeworks | Mitsubishi Heavy Industries | General Electric | NET Power | Siemens | Global Thermostat | Shell CANSOLV

Overview: Linde is a global industrial gases and engineering company with sales of US$ 27 billion (€24 billion) in 2020. The company offers high-quality technologies. solutions and services that make its customers more successful and help sustain and protect the planet.

Market Dynemics:

Growing Demand to Reduce Global Warming
The global CCS market is being increasingly driven by the urgent need to combat climate change and reduce greenhouse gas emissions. According to the Intergovernmental Panel on Climate Change (IPCC), limiting global temperature rise to 1.5°C under the Paris Agreement requires not only emission reductions but also active carbon removal from the atmosphere. Carbon sequestration technologies stabilize CO2 in solid or dissolved forms, preventing it from contributing to global warming.

The International Energy Agency (IEA) estimates that CCS technology needs to capture approximately 400 million tons of CO2 annually by 2025 to help keep temperature increases within 2°C. Beyond industrial applications, CCS can be applied to waste-to-energy facilities. In Europe, for instance, over 2 million tons of residual waste were treated in 2018, with less than half going to landfills, which release climate-damaging methane. By integrating CCS with incineration, CO2 emissions can be captured and stored, and in cases where biomass is used, CCS could even achieve negative emissions by removing more carbon than is released.

High Capital Investments Required
A significant restraint on CCS adoption is the high upfront cost of deploying the technology. CCS is often cited as less economically competitive compared to renewable energy sources like solar and wind, which have experienced dramatic cost reductions over the past decade. The cost of carbon capture varies widely depending on the source:

Industrial processes with concentrated CO2 streams (e.g., natural gas processing, ethanol production) range between US$ 15-25 per ton of CO2.

Processes with dilute CO2 streams (e.g., cement production, power generation) range between US$ 40-120 per ton of CO2.

Direct air capture (DAC) is currently the most expensive method but offers a crucial pathway for atmospheric carbon removal.

Despite high costs, companies are actively investing in research and development to reduce CCS expenses. For example, in 2021, Aker Solutions initiated a project to cut CCS costs by 70% for new storage facilities. The strategy focuses on optimizing the CO2 value chain, particularly in transport and long-term storage, making CCS deployment more economically viable over time.

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Regional Insights:

North America holds the largest share of the global CCS market at approximately 40%, led by the United States and Canada. The region benefits from advanced industrial infrastructure, well-established oil & gas and power sectors, and supportive government policies such as the 45Q tax credit in the U.S., which incentivizes carbon capture and storage projects. The presence of major CCS players like Mitsubishi Heavy Industries, Fluor Corporation, and Linde AG also drives market growth.

Europe accounts for around 30% of the market. Growth is driven by stringent environmental regulations, EU climate targets, and industrial decarbonization initiatives. Countries such as Norway, the UK, France, and the Netherlands are investing heavily in CO2 transport and storage infrastructure. Key projects include the Northern Lights CCS project in Norway and industrial capture initiatives in cement and chemical sectors.

Asia-Pacific represents approximately 20% of the market and is the fastest-growing region due to industrial expansion and rising energy demand in China, India, and Japan. Government programs promoting clean energy transition and CCS integration with hydrogen production are accelerating market adoption. Japan and China are focusing on pilot and commercial-scale CCS projects to reduce emissions from power generation and heavy industries.

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Market Segmentation:

By Service:
The CCS market is segmented into Capture, Pre-Combustion, Oxy-fuel, Post-Combustion, Transportation, and Storage. Capture services dominate with around 45% share, as they represent the core stage of the CCS value chain, including CO2 removal from flue gases and industrial processes. Post-combustion capture accounts for 25%, widely applied in power generation and industrial facilities due to retrofit compatibility. Pre-combustion capture holds about 10%, mainly in hydrogen and gas processing plants. Oxy-fuel capture contributes roughly 5%, mostly in experimental or pilot projects. Transportation services, which involve pipelines, trucks, and ships, represent 10%, while Storage (including saline aquifers, depleted oil & gas fields, and coal seams) accounts for 5%, reflecting the critical end-stage of CO2 sequestration.

By End-User:
The market is classified into Oil & Gas, Power Plants, Mining, Iron & Steel, Chemical Industry, Cement Industry, and Agriculture. Oil & Gas leads with approximately 35% share, primarily due to enhanced oil recovery (EOR) applications. Power plants account for 25%, driven by decarbonization initiatives in fossil-fuel-based electricity generation. Cement and chemical industries together represent about 20%, reflecting the high CO2 intensity of these sectors. Iron & Steel contributes 10%, while Mining and Agriculture collectively make up 10%, including emerging applications like bio-energy carbon capture in agricultural waste.

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