Carbon Capture-to-fuel Market: Overview
- Carbon capture-to-fuel is the method of producing synthetic fuels by capturing carbon from the atmosphere through the direct air capture (DAC) system with hydrogen to produce hydrocarbon fuels
- In the carbon capture-to-fuel method, a DAC plant uses large-sized fans to pull outside air through filters coated with a liquid solution that traps carbon dioxide. This captured carbon dioxide is then converted into small pellets of calcium carbonate.
- In this method, the CO2 captured from DAC plants can also be stored under the ground. This, in turn, helps in eliminating emissions from fuels, which is required to reduce the impact of global climate change.
- The fuels produced by using the carbon capture-to-fuel method are naturally renewable, as they are obtained from the recycled CO2.
Key Drivers of Global Carbon Capture-to-fuel Market
- Rise in the demand for clean fuel and limited availability of hydrocarbon-based fossil fuels are expected to boost the global demand for the carbon capture-to-fuel method in the near future
- One of the major factors driving the demand for carbon capture-to-fuel is the rise in concerns about global warming and the resulting demand for CO2-free technologies, which is prompting governments and private investors across the globe to closely consider all possible options to manufacture manmade fuels
- Moreover, combustion of fossil fuels at such a large scale results in the release of carbon dioxide and other greenhouse gases into the atmosphere. Increase in the level of these gases in the atmosphere has resulted in irreversible phenomena such as climate change and depletion of ozone. According to the Paris Climate Change Agreement, removal of the existing CO2 from the atmosphere is necessary. This factor is expected to drive the global market for carbon capture-to-fuel during the forecast period.
Carbon Capture-to-fuel Market: Key Developments and Policies
- In January 2020, Svante Inc. and Climeworks AG announced to have signed an agreement to collaborate for the development of carbon capture technology solutions. Both companies share the objective of preventing climate-relevant amounts of CO2 from being released into the atmosphere or removing them from the air. The Joint Development Agreement (JDA) would help Svante’s and Climeworks’ respective carbon capture technology solutions to be scaled up rapidly.
- In September 2019, Carbon Engineering Ltd. (CE), a major player in the clean energy sector in North America, announced to have expanded the capacity of its first commercial direct air capture (DAC) plant. This would enable its corporate customers to permanently remove carbon dioxide (CO2) emissions from the atmosphere. The planned facility is being engineered in partnership with Oxy Low Carbon Ventures, LLC (OLCV), which is a subsidiary of Occidental.
North America to Hold a Major Share of Global Carbon Capture-to-fuel Market
- Based on region, the global carbon capture-to-fuel market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Europe is expected to hold a major share of the global carbon capture-to-fuel market during the forecast period. Implementation of stringent regulations on carbon emissions is driving the market in the region. Demand for the carbon capture technology has been rising significantly in Europe over the last few years.
- The European Union (EU) has already taken an initiative for deployment of renewables, with a target of 20% renewables in its overall energy consumption by 2020. Furthermore, member countries the EU aim to increase this target to 27% by 2030. Based on the EU Reference Scenario 2016, the share of renewables in the net electricity generation is projected to rise to 37%, 43%, and 53% by 2020, 2030, and 2050, respectively.
- North America is another key region of the global carbon capture-to-fuel market. The growing focus on research and development activities to introduce innovative technologies is the primary factor driving the market in North America.
- Growing awareness regarding emission control technologies including the carbon capture-to-fuel method and expansion of manufacturing facilities in Asia Pacific are projected to drive the carbon capture-to-fuel market in the region during the forecast period.
Key players in Global Carbon Capture-to-fuel Market
- Svante Inc.
- Carbon Engineering Ltd.
- Climeworks AG
- Shell Cansolv
- Carbon Recycling International
- Antecy B.V.
Global Carbon Capture-to-fuel Market: Research Scope
Global Carbon Capture-to-fuel Market, by Fuel
- Synthetic Gasoline
- Aviation Fuel
Global Carbon Capture-to-fuel Market, by Technology
- DAC (Direct Air Capturing)
Global Carbon Capture-to-fuel Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa