Ocean Carbon Removal Market Size (2024 – 2030)

The Ocean Carbon Removal Market was valued at USD 564.35 million in 2023 and is projected to reach a market size of USD 1,745.07 million by the end of 2030. Over the forecast period of 2024-2030, the market is estimated to grow at a CAGR of 17.5%. 

Carbon Dioxide Removal refers to different methods used for removing carbon dioxide from the atmosphere including direct air capture, enhanced mineralization, ocean-based carbon capture, etc. These approaches are adopted by various industries to reduce carbon emissions to balance their carbon footprint and solve the issue of climate change. Ocean Carbon Removal refers to the process of mitigating carbon dioxide (CO2) levels from the Earth's atmosphere by leveraging the natural capacity of the oceans to absorb carbon. This involves various techniques and approaches focused on enhancing the ocean's capacity to sequester CO2, reducing its concentration in the atmosphere, and addressing climate modification. The Ocean Carbon Removal Market has seen exponential growth and attention due to increased global concerns about climate change and its impact. The Ocean Carbon Removal market has witnessed heightened investments and technological advancements in various methods, driving the upbringing of innovative strategies for efficient carbon removal from oceans.

Key Market Insights:

• As per the International Energy Agency, in 2022, CO2 emissions were responsible for around 89.96% of total greenhouse gas emissions emitted from the energy sector, resulting in about 37.2 Giga tons.

• In 2022, the total global value of venture capital funding for CCUS start-ups hit nearly USD 223 million, up from around 101 million in 2018.

• With the restricted progress on rapidly cutting global GHG emissions over the past decade, countries are now recognizing CDR as a critical component for accomplishing ambitious climate goals like a net zero GHG economy by 2050. 

Ocean Carbon Removal Market Drivers:

Climate change mitigation and Environmental Rules and Regulations are driving the need for ocean carbon removal techniques and methods.

The most compelling impetus propelling the ocean carbon removal market is the urgent global need to fight climate change. The rising levels of carbon dioxide (CO2) in Earth's environmental atmosphere are the most significant catalyst for global warming and the subsequent environmental consequences. Ocean-based carbon removal solutions are gaining traction because they offer a promising approach to curbing atmospheric CO2 levels and mitigating the detrimental effects of climate change. This driver is rooted in the universal acknowledgment of the severe and accelerating threats posed by climate change, including phenomena such as heightening sea levels, extreme weather events, and disruptions to ecosystems. The ocean carbon removal market is significantly persuaded by increasingly stringent environmental regulations and emissions reduction aims enacted by governments and international organizations. These regulations facilitate a potent catalyst for the development and adoption of carbon removal technologies. Businesses and industries are facing huge pressure to reduce their carbon emissions, compelling them to consider carbon removal solutions as an appealing alternative for achieving compliance with environmental mandates. As regulatory requirements continue to develop and strengthen, the demand for effective carbon removal methods is poised to surge.

Increasing interest and financial support from stakeholders are contributing hugely to the global market.

Another crucial driver of the ocean carbon removal market is the growing interest and financial support emanating from diverse stakeholders. These stakeholders involve private investors, philanthropic organizations, and governmental entities. Their deployments inject substantial capital into research, development, and investment in ocean carbon removal technologies. The recognition of carbon removal as a major climate solution has kindled heightened interest in the investment community, thus encouraging innovation and scalability in the market. Financial backing is indispensable for driving these technologies forward and making them accessible on a broader scale.

 Ocean Carbon Removal Market Restraints and Challenges:

Environmental problems and High Costs are restraining market growth.

A paramount limitation confronting the ocean carbon removal market pertains to the aspect of unintended environmental repercussions connected to specific removal methodologies. These apprehensions center on the potential modification of marine ecosystems and the induction of ocean acidification. The intricate hurdle lies in achieving an equilibrium between the requirement of carbon removal and the safeguarding of ecological integrity. The imperative task includes ensuring that carbon removal methods do not inflict harm on marine life or disrupt delicate ecosystems, which needs nuanced and meticulous approaches. Multiple ocean carbon removal techniques entail considerable financial investments in implementation and ongoing operation. The substantial cost factor consists of a deterrent, as these methodologies may lack economic viability in the absence of financial incentives or subsidies for the Ocean Carbon Removal market. The exorbitant expenses connected to technology development, surveillance, and maintenance pose formidable threats to widespread adoption. Strategies geared towards cost optimisation and securing adequate funding become imperative to surmount this hurdle effectively.

Ocean Carbon Removal Market Opportunities:

Aquaculture Innovation, Ocean Rainforest Sustainable Practices for CO2 Reduction Providing Opportunities:

Silver Lining initiative explores this technique to fight ocean acidification and capture CO2 from the atmosphere. Controlled iron release stimulates the spread of phytoplankton, absorbing CO2 during photosynthesis. Climos is a pioneering company experimenting with this technique to potentially enhance carbon capture in the ocean. Innovations in direct air capture (DAC) technology adapted for oceanic use can separate CO2 from seawater. Companies like Global Thermostat focus on creating cost-effective DAC solutions for ocean carbon removal. Establishing robust markets for blue carbon credits supports investment in oceanic carbon removal initiatives. Groups like the Blue Carbon Initiative focus on generating tradeable carbon credits from ocean-based sequestration projects. The idea of biomass-derived biochar, when submerged in the oceans, can sequester carbon for extended periods. Organizations like the International Biochar Initiative are exploring this method for ocean-based carbon removal. Restoring coral reefs not only preserves biodiversity but also supports carbon sequestration. Entities like The Ocean Agency prioritize reef restoration, recognizing its ability for carbon removal. Integrating carbon-sequestering aquaculture practices like shellfish farming prevents carbon while meeting food demands.

The allocated funds from financial initiatives will assist in broadening the comprehension of different facets related to marine carbon dioxide removal strategies. These involve understanding associated risks, observing co-benefits such as mitigating ocean acidification, and conducting scientific studies pivotal in establishing regulatory frameworks. Ultimately, the goal is to facilitate the testing and scaling of marine carbon dioxide removal techniques, leveraging the combined expertise of multiple sectors to drive forward upgrades in this critical area of environmental research. Collaborative policies, like the EU's Ocean Decade initiative, encourage research and development in the Ocean Carbon Removal sector, supporting diverse strategies for effective carbon removal from the ocean, thereby driving market development and innovation.

OCEAN CARBON REMOVAL MARKET REPORT COVERAGE:

Ocean Carbon Removal Market Segmentation: By Technology

• Direct Air Capture

• Biochar

• Enhanced Mineralization

• Ocean Alkalization

• Others

Of these, the Direct Air Capture segment is experiencing a substantial increase in demand in the Global Carbon Dioxide Removal market. This is owing to the location flexibility of this method, which captures carbon directly from the source of emissions, making it appealing to an extensive range of industries. Direct air capture (DAC) technologies take out CO₂ directly from the atmosphere. The CO₂ can be permanently kept in deep geological formations, thereby achieving carbon dioxide removal (CDR).

Thus, the high ability for carbon removal by DAC, when compared to other techniques & high storage permanence, and a restricted land & water footprint led to the enhancement of the market development. Also, the choice of using the captured CO₂ in processing industries, such as food processing or integrating it with hydrogen to generate synthetic fuels, is estimated to promote the adoption of this method in the upcoming years.

Ocean Carbon Removal Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Of all the regions across the world, North America is witnessing an upsurge in demand for carbon dioxide removal infrastructure due to the presence of policy measures & initiatives taken by countries such as the US & Canada to accomplish the goals set up for mitigating the result of climate change, including CarbonSafe, Low Carbon Economy Fund, and others. The huge number of investments made by regional governments in carbon capture projects are enhancing the market growth in the geography. 

COVID-19 Impact Analysis on the Ocean Carbon Removal Market:

The outbreak of COVID-19 posed crucial challenges in all sectors including the Ocean Carbon Removal sector across the globe. It has resulted in the negative growth of the Ocean Carbon Removal services as supply chain disruptions due to trade regulations and restrictions affected the product demand. 

Latest Trends:

Emerging trends represent a growing focus on collaborative efforts among governments, businesses, and environmental organizations to foster advancements in ocean carbon removal. Furthermore, a move towards innovative solutions such as direct air capture (DAC) technology and the exploration of blue carbon credits from ocean-based sequestration projects has marked the latest and modern opportunities within the Ocean Carbon Removal market. In addition, trends show rising stress on exploring various methods like biochar sequestration, reef restoration, aquaculture, and iron fertilization to enhance carbon removal. Microsoft's penetration into ocean carbon removal has signaled a pivotal development in the market. By incorporating ocean carbon removal into its portfolio, Microsoft has joined the league of organizations focusing on bolstering these initiatives, attributing to advancements and scaling up carbon removal efforts. This initiative is anticipated to inspire similar investments and collaborations, further influencing Ocean Carbon Removal market growth and innovation.

Key Players:

1. Climeworks AG

2. Thermostat

3. Carbon Engineering Ltd

4. Mitsubishi Heavy Industries

5. Cella Mineral Storage

6. Arca Climate

7. Carbon Clean Solutions

8. Equinor Carbofex Ltd

9. Carbon Cure Technologies Inc

10. Blue Planet System

11. Bessume Energy AB

Recent Developments

• In 2023, Climeworks signed a 13-year contract with Partners Group Holding, a private equity firm, to capture & store more than 7,000 metric tons of CO2 from the atmosphere on behalf of Partners Group. It is a segment of Partners Group's plan to become carbon neutral by 2030.

• In 2023, Global Thermostat unveiled the biggest direct air capture unit in the US with a capacity of capturing over 1,000 tons of carbon per year in Commerce City, Colorado.

• In October 2022, Carbon Engineering Ltd. and Occidental Petroleum Corp. began the construction of a carbon removal plant in the Permian Basin, U.S. The plant would have the ability to draw 500,000 tons of carbon dioxide from the atmosphere per year using direct air capture technology.

• In October 2022, Climeworks finished the commercial operations of its first-generation technology at its world's first commercial direct air capture facility in Hinwil, Switzerland. The operation would assist the company to sharpen the focus and achieve gigatons of CO2 by 2050.