US Carbon Capture and Storage Market Research Report By Technology (Post-Combustion Capture, Pre-Combustion Capture, Oxy-Fuel Combustion, Direct Air Capture), By Application (Power Generation, Industrial Processes, Natural Gas Processing, Transport and Storage), By End Use (Energy Sector, Manufacturing Sector, Chemical Sector, Healthcare Sector) and By Method (Bioenergy with Carbon Capture and Storage, Mineralization, Enhanced Oil Recovery, Aquifer Storage) - Forecast to 2035

US Carbon Capture and Storage Market Overview:

As per MRFR analysis, the US Carbon Capture and Storage Market Size was estimated at 582.75 (USD Million) in 2023. The US Carbon Capture and Storage Market Industry is expected to grow from 679.35 (USD Million) in 2024 to 4,840 (USD Million) by 2035. The US Carbon Capture and Storage Market CAGR (growth rate) is expected to be around 19.543% during the forecast period (2025 - 2035).

Key US Carbon Capture and Storage Market Trends Highlighted

The US Carbon Capture and Storage Market is experiencing significant growth driven by the urgent need for climate change mitigation and the push for net-zero emissions targets. With various federal and state initiatives actively encouraging carbon capture technologies, the market is bolstered by government policies, such as tax incentives and funding for research and development. The US government has prioritized investments in carbon capture, recognizing its role in reducing emissions from industrial sources and power generation. Increased awareness and public support for sustainable practices have further propelled demand for effective carbon capture solutions.

Emerging opportunities in the US market include the integration of carbon capture with renewable energy sources. This combination allows for the capture of emissions while enhancing the overall efficiency of energy generation. Additionally, the role of carbon capture and storage in the production of low-carbon hydrogen is gaining traction, aligning with the broader energy transition strategies pursued by various sectors in the US. Moreover, collaboration among corporations, universities, and governmental bodies is seen as a key pathway to accelerate innovation and deployment of these technologies. In recent times, trends such as the establishment of regional partnerships and clusters for carbon capture projects have become prominent.

Sections of the US, such as the Gulf Coast and Midwest, are seeing concentrated efforts to develop infrastructure for transportation and storage of captured carbon. The commitment from various industries, particularly oil and gas, to utilize captured carbon for enhanced oil recovery stands out as an innovative application. As the recognition of the importance of carbon capture continues to grow, the US Carbon Capture and Storage Market is poised for notable advancements, driven by regulatory support, technological innovation, and a focus on achieving sustainability goals.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Carbon Capture and Storage Market Drivers

Government Policies and Regulations

In recent years, the US Federal Government has emphasized the importance of reducing greenhouse gas emissions, leading to the implementation of various policies and regulatory frameworks favoring carbon capture and storage solutions in the US Carbon Capture and Storage Market Industry. The introduction of the 45Q tax credit, which offers financial incentives for carbon dioxide captured and stored, has been pivotal. The Internal Revenue Service has indicated that this credit could potentially increase carbon capture investment by 20% in the coming years, driving market growth.

Additionally, the Biden Administration's commitment to achieving net-zero emissions by 2050 further underscores the critical role that carbon capture will play in climate strategies, significantly impacting the projected growth of the US Carbon Capture and Storage Market.

Technological Advancements

The ongoing advancements in carbon capture technologies, such as direct air capture and improved geological storage methods, are vital for the growth of the US Carbon Capture and Storage Market Industry. Scientific research and development initiatives, supported by entities like the National Renewable Energy Laboratory, have reported a 30% increase in efficiency for newly developed capture systems over the past five years. This improvement not only reduces the cost of implementation but also enhances the commercial viability of carbon capture projects.As companies leverage these technologies to create more efficient and cost-effective solutions, the market is expected to expand rapidly.

Investment from Private Sector

There has been a notable increase in investment from private sector entities into the US Carbon Capture and Storage Market Industry, driven by a growing recognition of the environmental and financial benefits of carbon capture technologies. Reports indicate that venture capital funding for carbon capture startups reached approximately $1.5 billion in 2021, highlighting the financial community's belief in the future of this technology. This trend is expected to continue as major corporations like ExxonMobil and Occidental Petroleum commit to significant financial resources on carbon capture initiatives.Additionally, the Carbon Capture Coalition, representing over 80 organizations across the energy and industrial sectors, emphasizes a collaborative approach to developing these technologies, thereby driving market growth.

US Carbon Capture and Storage Market Segment Insights:

Carbon Capture and Storage Market Technology Insights

The US Carbon Capture and Storage Market within the Technology segment is undergoing significant evolution, driven by the increasing need to mitigate carbon emissions and combat climate change. The overall market revenue is projected to increase dramatically over the years, reflecting the rising demand for innovative technologies that capture and store carbon dioxide effectively. In particular, Post-Combustion Capture technology is vital due to its applicability to existing power plants, making it a preferred choice for many industries aiming to retro-fit their operations to align with environmental regulations. This technique is particularly significant as it addresses emissions from fossil fuel combustion, which is a major contributor to greenhouse gas emissions in the United States. Simultaneously, Pre-Combustion Capture technology is gaining traction as it allows for carbon removal prior to the energy generation process, enhancing overall efficiency and facilitating low-carbon hydrogen production. This segment holds importance as it can redefine fuel consumption patterns, particularly for natural gas facilities and undergoes extensive research into its capacity for large-scale deployment.

Oxy-Fuel Combustion is another noteworthy technology that stands out due to its ability to generate a concentrated stream of CO2 for easier capture. This technique is essential for industries focused on cleaner combustion methods, thus minimizing the carbon footprint during energy generation. Direct Air Capture, while still in developmental phases compared to other technologies, is gaining attention for its potential to remove CO2 directly from ambient air. This innovative approach appeals to various sectors seeking negative emissions solutions, emphasizing its long-term viability for sustainability goals. Each of these technologies contributes uniquely to the overall objective of reducing carbon emissions, reflecting a comprehensive strategy within the US Carbon Capture and Storage Market. Market growth in the Technology segment is influenced by favorable government policies and incentives aimed at promoting carbon management, supporting the continual advancement and adoption of these technologies. Increasing investments in Research and Development initiatives further drive innovation, focusing on enhancing efficiency and reducing costs associated with carbon capture processes.

As businesses and industries become more enlightened about their environmental responsibilities, the burgeoning awareness around the significance of carbon capture solutions bolsters the relevance of these technologies. Moreover, the potential for technological collaboration between enterprises indicates promising opportunities for progress, particularly as the United States aims to reach ambitious climate goals. As the landscape evolves, each technology brings its own set of advantages and challenges, paving the path for a more sustainable future in the energy and industrial sectors. The dynamic nature of the US Carbon Capture and Storage Market ensures that these technologies remain at the forefront of the dialogue around effective climate action strategies.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Carbon Capture and Storage Market Application Insights

The Application segment of the US Carbon Capture and Storage Market plays a critical role in mitigating greenhouse gas emissions across various industries. Within this segment, Power Generation emerges as a vital contributor, as it enables the reduction of carbon emissions from fossil fuel-based plants, thus aligning with national energy policies aimed at enhancing sustainability. Additionally, Industrial Processes hold significant importance, particularly in sectors such as cement and steel production where emissions are traditionally high. Natural Gas Processing is also noteworthy, as it facilitates the capture of CO2 emissions while transforming raw natural gas into usable fuel, reflecting the increasing demand for cleaner energy sources in the US.

Furthermore, Transport and Storage are essential for the successful implementation of carbon capture initiatives, acting as the backbone by enabling the safe and efficient movement and sequestration of captured carbon. Overall, these Application areas within the US Carbon Capture and Storage Market are increasingly recognized as crucial drivers of both environmental improvement and economic opportunities, as industries adapt to stricter emission regulations and pursue innovative technologies to combat climate change.

Carbon Capture and Storage Market End Use Insights

The US Carbon Capture and Storage Market reflects a diverse range of end uses that drive its growth and significance. The Energy Sector is a crucial player, as it seeks to mitigate carbon emissions while transitioning to renewable sources, making carbon capture technology essential for traditional energy producers aiming for lower carbon footprints. The Manufacturing Sector also plays a vital role, with industries such as steel and cement production under pressure to adopt cleaner practices, presenting ample opportunities for carbon capture integration. The Chemical Sector benefits from carbon capture by enabling the production of innovative materials while reducing environmental impact.

Meanwhile, the Healthcare Sector’s involvement highlights the potential of carbon management strategies to address emissions tied to medical waste and facility operations. Together, these segments contribute to the evolving landscape of the US Carbon Capture and Storage Market, showcasing its critical importance in achieving sustainability goals and compliance with regulatory frameworks focused on carbon reduction. As demand for cleaner technologies rises, advanced carbon capture solutions across various end uses become vital to navigate environmental challenges and support market growth.

Carbon Capture and Storage Market Method Insights

The Method segment of the US Carbon Capture and Storage Market plays a vital role in addressing climate change and fostering sustainability across various industries. The integration of Bioenergy with Carbon Capture and Storage is particularly significant, as it allows for the conversion of biomass into energy while simultaneously capturing CO2 emissions, thus contributing to a circular carbon economy. Mineralization provides a unique approach by converting CO2 into stable minerals, ensuring long-term storage and environmental safety. Enhanced Oil Recovery utilizes captured CO2 to increase oil extraction efficiency, thereby supporting energy production and economic stability.

Aquifer Storage allows for the safe underground storage of CO2 in geological formations, preventing its release into the atmosphere. Each of these methods not only demonstrates the technical viability of capturing and storing carbon but also highlights opportunities for innovation and investment in the US Carbon Capture and Storage Market. The focus on these methods reflects the growing demand for sustainable practices and the urgency to mitigate climate impact, ensuring that the US remains at the forefront of carbon management technologies. As the market continues to evolve, these methods will likely adapt and expand to meet both regulatory requirements and economic incentives, maximizing the potential for significant reductions in greenhouse gas emissions.

US Carbon Capture and Storage Market Key Players and Competitive Insights:

The competitive insights of the US Carbon Capture and Storage Market reveal a rapidly evolving landscape characterized by advancements in technology, increasing investment, and a growing focus on sustainability amidst climate change concerns. A multitude of stakeholders, ranging from large energy corporations to emerging start-ups, are vying for market share as they seek to develop and deploy effective carbon capture solutions. Regulatory frameworks and government incentives are also shaping the competitive dynamics of the market, pushing companies to innovate and adopt cutting-edge practices. The competitive environment is underscored by collaborations and partnerships among various entities aimed at enhancing technological capabilities, expanding geographical reach, and achieving project financing, further intensifying the market competition.

In the context of the US Carbon Capture and Storage Market, TotalEnergies stands out as a formidable player known for its commitment to innovation and sustainability. The company's robust portfolio in renewable energies and low-carbon solutions allows it to maintain a strong competitive edge. TotalEnergies has made significant investments in research and development to advance its carbon capture technologies, enabling it to capture and store carbon emissions effectively. Its strategic approach, which focuses on collaborative projects and leveraging its vast expertise in energy production, bolsters its market presence. The company’s emphasis on integrating carbon capture initiatives within its broader operational framework enhances efficiency and reduces emissions, further solidifying its reputation as a leader in the industry.

Global CCS Institute plays a pivotal role in shaping the discourse surrounding carbon capture and storage in the US. As an influential advocacy organization, this institute collaborates with various stakeholders to promote the deployment of CCS technologies and facilitate knowledge sharing. The Global CCS Institute’s efforts to conduct extensive research and provide resources support stakeholders in understanding and implementing effective carbon management practices. Additionally, the organization actively engages in policy advocacy to create a favorable environment for CCS adoption, which strengthens its position in the market. By facilitating partnerships and supporting educational initiatives, the Global CCS Institute helps drive innovation and best practices in the realm of carbon capture, contributing to the overall growth of the US Carbon Capture and Storage Market.

Key Companies in the US Carbon Capture and Storage Market Include:

• TotalEnergies


• Global CCS Institute


• Drax Group


• Shell


• ExxonMobil


• Occidental Petroleum


• Babcock and Wilcox


• Fluor Corporation


• Linde


• NET Power


• Carbon Clean Solutions


• Siemens Energy


• Chevron


• Aker Solutions

US Carbon Capture and Storage Market Industry Developments

Recent developments in the US Carbon Capture and Storage Market indicate a surge in investment and collaboration among key players. TotalEnergies and Occidental Petroleum continue to push the envelope with innovative projects aimed at carbon reduction. The Global CCS Institute reported a rise in awareness and support for carbon capture technology, underscoring its importance in achieving net-zero emissions targets. Major corporations like Shell and ExxonMobil are expanding their carbon capture portfolios in response to governmental incentives and evolving regulations aimed at curbing climate change.

In September 2023, Fluor Corporation announced partnerships with Siemens Energy to advance carbon capture projects, increasing operational efficiencies. Drax Group has also been actively involved in the integration of carbon capture solutions. Furthermore, Babcock and Wilcox disclosed a contract relating to advanced carbon capture technology in August 2023. The market valuation of these companies has seen upward trends, driven by heightened public interest and governmental policy support. Significant events over the past few years, particularly in 2021 and 2022, included increased federal funding aimed at incentivizing the development of CCS technology, which has fortified the sector's growth within the US industrial landscape.

US Carbon Capture and Storage Market Segmentation Insights

Carbon Capture and Storage Market Technology Outlook

• Post-Combustion Capture


• Pre-Combustion Capture


• Oxy-Fuel Combustion


• Direct Air Capture

Carbon Capture and Storage Market Application Outlook

• Power Generation


• Industrial Processes


• Natural Gas Processing


• Transport and Storage

Carbon Capture and Storage Market End Use Outlook

• Energy Sector


• Manufacturing Sector


• Chemical Sector


• Healthcare Sector

Carbon Capture and Storage Market Method Outlook

• Bioenergy with Carbon Capture and Storage


• Mineralization


• Enhanced Oil Recovery


• Aquifer Storage

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	582.75 (USD Million)
MARKET SIZE 2024	679.35 (USD Million)
MARKET SIZE 2035	4840.0 (USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	19.543% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	TotalEnergies, Global CCS Institute, Drax Group, Shell, ExxonMobil, Occidental Petroleum, Babcock and Wilcox, Fluor Corporation, Linde, NET Power, Carbon Clean Solutions, Siemens Energy, Chevron, Aker Solutions
SEGMENTS COVERED	Technology, Application, End Use, Method
KEY MARKET OPPORTUNITIES	Increased regulations on emissions, Government funding and incentives, Technological advancements in capture, Expansion in industrial applications, Growing carbon trading markets
KEY MARKET DYNAMICS	regulatory support and incentives, technological advancements and innovation, increasing carbon emissions awareness, investment in renewable energy, collaboration between public and private sectors
COUNTRIES COVERED	US