Market Overview
The Latin America carbon capture and storage (CCS) market size reached USD 0.18 Billion in 2024. The market is expected to grow to USD 0.36 Billion by 2033, exhibiting a CAGR of 8.12% during the forecast period of 2025-2033. Key growth drivers include advances in technology, decreasing costs, government incentives such as tax credits and subsidies, and increased integration of CCS with oil and gas operations. These factors collectively boost market confidence and adoption across various sectors.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Latin America Carbon Capture and Storage (CCS) Market Key Takeaways
- Market size in 2024 stood at USD 0.18 Billion, with a projected CAGR of 8.12% over 2025-2033.
- Government incentives including tax credits, subsidies, and grants are fostering CCS adoption in various Latin American countries.
- Brazil is advancing CCS legislation with Bill 1425/2022 aimed at establishing a legal framework for CCS activities.
- Technological advancements such as direct air capture (DAC) and advanced solvents are enhancing CCS efficiency and viability.
- Integration of CCS with oil and gas operations is growing, exemplified by TotalEnergies’ subsea CO2 capture trial at Brazil’s Mero oilfield.
- Key countries covered include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others.
Market Growth Factors
Government support is a major driver of CCS in the Latin American market․ Governments in Latin America use tax credits, subsidies, and grants to reduce the costs of CCS technologies and encourage domestic companies to adopt CCS․ They also encourage foreign companies to invest in carbon capture projects in Brazil․ For example, Brazil’s Bill 1425/2022 seeks to strengthen existing legislation on carbon capture, storage, and utilization (CCUS) in Brazil, drawing from carbon reduction priorities․
Further technological development driving market growth includes direct air capture (DAC) technologies, as well as novel solvent and solvent-to-solid CO2 capture technologies, which provide increasingly more efficient processes and lower costs for carbon capture, transport and storage․ As a result, CCS is now cheaper to use for large-scale, centralized applications such as power generation, cement and steel production․ In 2024, DACMA GmbH, in partnership with the University of PUCRS, will open the first DAC system in South America, a step toward the commercialization of the technology․
The combined application of CCS and oil and gas production is gaining acceptance as a way of reducing emissions while also producing oil and gas․ CO2 is captured from the natural gas production and reinjected into the reservoir, thereby reducing the carbon footprint of the gas and helping oil recovery․ A subsea carbon capture and storage scheme at Brazil’s Mero oilfield led by TotalEnergies in 2024 also highlights the planned importance of CCS technology to the fossil fuel sector for reducing emissions and increasing production․
Market Segmentation
Service Insights:
- Capture: Includes the processes and technologies involved in capturing CO2 from industrial and energy-related sources.
- Transportation: Covers the movement of captured carbon dioxide through pipelines or other means to storage sites.
- Storage: Involves the sequestration of carbon dioxide in geological formations to prevent its release into the atmosphere.
Technology Insights:
- Post-combustion Capture: Capturing CO2 after fossil fuel combustion processes.
- Pre-combustion Capture: Capturing CO2 before combustion occurs.
- Oxy-fuel Combustion Capture: Uses oxygen instead of air for combustion, resulting in a CO2-rich exhaust stream easier to capture.
End Use Industry Insights:
- Oil and Gas: Adoption of CCS to mitigate emissions and improve resource extraction.
- Coal and Biomass Power Plant: Application of CCS in power generation to reduce carbon footprint.
- Iron and Steel: Use of CCS technologies to reduce emissions during metal production.
- Chemical: CCS integration in various chemical manufacturing processes.
- Others: Covers additional industries utilizing CCS technologies.
Regional Insights
Brazil emerges as a dominant market in Latin America for CCS, with significant activities including legislative progress and innovative pilot projects. The TotalEnergies-led CCS subsea trial at Brazil’s Mero oilfield evidences advanced integration strategies in the region. This regional leadership is supported by government incentives and technological advancements that facilitate CCS adoption and growth across Latin America.
Recent Developments & News
In May 2024, PGS participated in the carbon capture, utilization, and storage (CCUS) Latin America event in Rio de Janeiro, highlighting its CCS expertise focused on Brazil, especially regarding CO2 storage capacity in saline aquifers and seismic data utilization for site characterization. In November 2023, Wintershall Dea, YPF, and Dow signed a Memorandum of Understanding (MoU) to explore CCS opportunities in Argentina. They evaluated potential CCS sites near the Bahía Blanca industrial cluster, which could also support low-carbon hydrogen production.
Key Players
- PGS
- Wintershall Dea
- YPF
- Dow
- TotalEnergies
- DACMA GmbH
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