Europe Carbon Capture Utilization Industry Overview
The Europe carbon capture utilization market size is expected to reach USD 3,985.4 million by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 18.4% from 2020 to 2028. Increasing applications of CCU in the enhanced oil recovery (EOR) in the oil and gas segment are expected to contribute to the growth of the market. Further, the food and beverages, chemicals, cement, and other industries are anticipated to be the major application segments that are expected to contribute to the growth of the market over the forecast period.
Industrial emerged as the largest market share in 2020 in terms of value for application segment as it is used in the industries such as cement, chemicals, power, steel, food, and beverages to capture carbon and utilize it for a better purpose. In terms of value, cement in the industrial application segment emerged as the largest segment in 2020 as many companies are showing interest in the adoption of carbon capture and utilization technologies in their manufacturing plants in the form of pilot-scale projects to evaluate the technology and economics of carbon capture and recovery, which is expected to contribute to the growth of the market in the coming years.
The demand for carbon dioxide has been experiencing a dip in sectors such as beverage manufacturing as restaurants and bars across Europe have shut operations. Also, reduced demand for oil has resulted in halted operations in oil production in some of the exploration sites of oil gas vendors that employ carbon dioxide-based EOR techniques. Further, the demand for industrial-grade carbon dioxide has also been on the lower side as industrial activities have slowed down in states badly affected by COVID-19.
However, the demand for CCU for the utilization of carbon dioxide has been on a higher side from medical and fire-fighting applications in Europe. The requirement for a large number of COVID care centers across the country, along with a number of medical applications of carbon dioxide, has resulted in high demand for medical-grade carbon dioxide in the region in recent times. Further, the requirement for fire-fighting equipment in newly developed hospitals and centers and upgrade in safety standards in existing facilities have resulted in increased demand for carbon dioxide in firefighting applications in the country.
Significant technological advancements in non-power sectors, such as petroleum refining, chemical, cement manufacturing, and metal foundry, in mature economies, such as the Netherlands, the U.K., and Norway, have led to the implementation of CCU technologies in small or pilot phases. Such favorable initiatives, coupled with increasing awareness among policymakers across various industrial sectors regarding the benefits of such techniques to curtail CO2 emissions are likely to provide immense opportunities for future investments.
The industrial application segment dominated the market and accounted for a revenue share of 41.6% in 2020. The cement industry emits a significant amount of CO2 during the calcination of limestone (CaCO3) to form CaO, which is the main precursor for cement production. The growing number of regulatory measures undertaken by the local governments to limit carbon emissions has created lucrative opportunities for the carbon capture utilization market.
Moreover, carbon dioxide is widely used for upstream well servicing applications such as hydraulic fracturing and Enhanced Oil Recovery (EOR) applications such as miscible oil displacement in the oil gas industry. Carbon dioxide is injected into the rock pores to recover crude oil. CO2 is miscible with crude oil and is comparatively less expensive than other similar miscible fluids used for these applications, making it a preferred choice for EOR applications.
Europe Carbon Capture Utilization Market Segmentation
Grand View Research has segmented the Europe Carbon Capture Utilization market based on application and country
Based on the Application, the market is segmented into Enhanced Oil Recovery (EOR), Industrial, and Agriculture.
- The industrial application segment led the market for carbon capture utilization in Europe and accounted for more than 41.0% revenue share in 2020and is anticipated to maintain its dominance over the forecast period. The industrial segment is further sub-segmented into applications such as Properties such as higher toughness and impact strength, light transmittance, protection from Ultraviolet (UV) radiations, and chemical and heat resistance make recycled PC resins suitable for use in electrical and electronic device components such as television frames, mobile cases, electrical housing, and others.
- Carbon capture utilization in EOR is one of the significant industries, which has a growth rate of 18.2% from 2020 to 2028. The strong underpinning expertise and the availability of high-end technologies are the most crucial factors favoring the adoption of carbon capture utilization across the oil gas industry. Furthermore, factors such as comprehensive value chain relationships, access to low-cost finance, and revenues generated by the market players, are used to fund to adopt the carbon capture utilization in the oil and gas industry.
Key Companies Market Share Insights
The European Carbon Capture Utilization (CCU) market is moderately consolidated with the presence of various multinational players. This makes the industry highly competitive in nature as it also requires high initial investments and RD costs. Some of the significant industry participants include Royal Dutch Shell, Equinor ASA, Linde, and Aker Solution. For instance, in April 2021, the company announced to join a project to build UK’s large-scale carbon capture and H2 hub as major oil players are focusing on cleaner energy. The company will team up with Harbour Energy Plc and StoreggaGeotechnologies Ltd.
In addition, in March 2021, Aker carbon capture and Siemens energy joined forces to generate sustainable power. Both companies have signed an MoU to develop a combined offering for the Carbon capture solutions that can be used in gas turbines and gas power plants. This collaboration will help both companies to explore ways to jointly track the development of major projects across the globe. Some of the prominent players in the Europe Carbon Capture Utilization market include:
- Aker Solutions
- Equinor ASA
- Fluor Corporation
- Linde Plc
- Mitsubishi Heavy Industries Ltd. (MHI)
- Royal Dutch Shell
- Siemens Energy
- Sulzer Ltd.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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