Carbon Capture, Utilization & Storage (CCUS)

Clear the air on carbon capture, reuse, and storage

Overview

Climate efforts so far have had limited tangible results, and global emissions have continued to increase every year, as current efforts to reduce emissions from hard-to-decarbonize industries such as oil and gas, power, steel, cement, fertilizers, etc., have been inadequate. Carbon capture is one method that can remove carbon dioxide (CO2) emissions from these heavy industries. Moreover, newer technologies like direct air capture (DAC) can also reduce the carbon footprints of industries that do not have active flue stacks, such as construction and data centers, as well as non-stationary emissions from transportation. Carbon capture technologies, along with utilization and sequestration, would play a vital role in quickly decarbonizing economies over the next few decades to reach aggressive zero-emission targets.

Industry Updates

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Market Sizing

The US CCUS market could reach USD 5.9 billion–12.8 billion by 2028

Conservative case

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Base case

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Market Mapping


The next-gen carbon utilization segment has the highest number of startups followed by direct air capture (DAC) and flue-gas capture. This is likely due to the various pathways available to turn captured carbon dioxide (CO2) into valuable commercial products. 

There are only a few carbon sequestration startups, possibly due to challenges in commercial feasibility. The economic gain from storing captured CO2 underground is limited compared to converting it into commercial products. Meanwhile, a higher number of pre-seed and seed-stage startups suggests that the industry is at a very nascent state.

Incumbents
Growth
Early
Seed
Pre-Seed
Flue-gas Capture
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Direct Air Capture (DAC)
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Next-gen Carbon Utilization: Sustainable Fuels
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Next-gen Carbon Utilization: Other
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Carbon Sequestration
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Geotechnologies
Geotechnologies
Geotechnologies
Geotechnologies
Geotechnologies

The Disruptors


The industry is well funded. The average funding of the CCUS disruptors is around USD 50 million. LanzaTech is the highest funded and is a public company operating in the CCUS space. Climeworks, Svante and Twelve are some of the others that have raised more than USD 500 million. 

CCUS disruptors also seem to have long operational histories despite being in a nascent industry. An average disruptor has been in operation for nearly ten years, while some of them are yet to go to market. These longer development timelines suggest the need for heavy innovation in the industry.

Funding History

Competitive Analysis


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Incumbents


Incumbents dominate the flue-gas capture segment, with leading oil companies like Shell, ExxonMobil, and Oxy attempting to maintain the circularity of their operations by capturing and utilizing carbon dioxide (CO2) in enhanced oil recovery (EOR). Meanwhile, companies like Dakota Gas and Air Products capture CO2 from their operations and sell it to third-party EOR operators. Incumbent activity across direct air capture (DAC), next-gen carbon utilization, and carbon sequestration segments are largely limited.

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Notable Investors


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Overview

CCUS plays a vital role in quickly decarbonizing economies over the next few decades

Carbon capture refers to capturing carbon dioxide (CO2) from either flue gas emissions (flue gas capture) or ambient air (direct air capture or DAC). Captured CO2 is then used to produce commercial products (carbon utilization) or stored permanently underground (carbon sequestration).

How CCUS works

063-CCUS-Overview-Chart Image 1
Only the shaded segments are covered in the industry hub
Source: SPEEDA Edge research
Maintaining global warming at a sub-catastrophic level requires halving current emissions by 2030 and achieving net-zero emissions by 2050. However, climate efforts so far seem to have had limited tangible results given global emissions have continued to increase every year. Current efforts have been inadequate in reducing emissions from hard-to-decarbonize industries such as oil and gas, power, steel, cement, fertilizers, etc. 
Carbon capture can remove CO2 emissions from these heavy industries. Moreover, newer technologies such as direct air capture (DAC) can also reduce carbon footprints of industries that do not have active flue-stacks, such as construction and data centers, as well as non-stationary emissions from transportation. Carbon capture technologies, along with utilization and sequestration, would play a vital role in quickly decarbonizing economies over the next few decades to reach zero-emission targets. 
The carbon capture, utilization, and storage (CCUS) industry hub excludes natural carbon capture initiatives such as tree planting and biologically modified trees, as well as carbon utilization pathways that use naturally captured carbon such as biochar and BECCS. The industry hub also excludes conventional carbon utilization pathways such as urea production, enhanced oil recovery (EOR), food and beverages (F&B), etc. 

Key Segments

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