Australia Carbon Capture and Storage Market

Australia Carbon Capture and Storage Market Overview:

The Australia carbon capture and storage market size reached USD 59.40 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 120.03 Million by 2033, exhibiting a growth rate (CAGR) of 8.13% during 2025-2033. The government support, environmental policy commitments, and technological advancements are augmenting the market growth. Furthermore, energy sector investment, private sector engagement, industrial decarbonization needs, and growing carbon markets are stimulating the market growth. Apart from this, surging export opportunities, and increasing demand for sustainable solutions are contributing to the market growth. The country’s abundant storage capacity and commitment to net-zero emissions further support the widespread adoption and development of CCS technologies across various sectors, boosting the Australia carbon capture and storage (CCS) market share.

Australia Carbon Capture and Storage Market Trends:

Government Support

Government assistance is leading the carbon capture and storage (CCS) sector in Australia. Australia has recognized CCS as a significant technology that will enable it to meet its climate change goals. The government's aspiration to be net-zero by 2050 has spurred policy responses aimed at assisting the development of CCS implementation. The government has also made concerted efforts to provide a regulatory environment conducive to CCS development, including permitting guidelines, environmental monitoring guidelines, and safety guidelines. Regulatory certainty enhances investor confidence and brings both domestic and international investors to invest in CCS ventures. For example, CCS has been encouraged by the government as one of the most high-profile technologies in the "Technology Investment Roadmap," which highlights several pathways for emissions reductions in hard-to-abate industries.  In line with this commitment, the Australian Federal Budget 2024–25 allocated $556.1 million over ten years to the 'Resourcing Australia’s Prosperity' program, which includes mapping geological storage potential for CCS, and an additional $32.6 million over four years to support regional cooperation on carbon sequestration, thereby reinforcing the government's dedication to advancing CCS initiatives

Environmental Policy Commitments

Australia’s environmental policy commitments significantly contribute to the acceleration of the CCS market. As part of its international obligations under the Paris Agreement, Australia has set ambitious carbon reduction targets to achieve net-zero emissions by 2050. To meet these targets, Australia has emphasized the need for technological innovations, including CCS, to reduce the carbon footprint of industries with high emissions. This ambitious goal has created a clear incentive for industries and stakeholders to invest in and adopt CCS technologies as an essential tool in meeting their emission reduction obligations. With the goal to produce 500,000 tons of clean hydrogen annually by 2030, CCS is central to ensuring that hydrogen production is both economically viable and environmentally sustainable. In support of this, the Australian government announced in May 2024 a significant investment of AU$566 million to enhance offshore mapping programs aimed at identifying new carbon capture and storage locations and potential sites for clean hydrogen projects. This initiative is part of the broader "Future Made in Australia" agenda, underscoring the nation's commitment to developing a robust CCS infrastructure to meet its climate objectives .

Technological Advancements

Technological advancements in carbon capture and storage (CCS) are significantly driving the market growth. These innovations are addressing key challenges related to the efficiency and cost-effectiveness of CCS, making the technology more accessible for industries to adopt. Over the past decade, advancements in CO2 capture technologies, such as solvent-based absorption and membrane separation techniques, have improved the overall efficiency of carbon capture, reducing the energy required to capture CO2 emissions. For instance, the development of direct air capture (DAC) systems has expanded the range of CCS applications, allowing CO2 to be captured directly from ambient air, not just from industrial flue gases. This development is important as it opens up new opportunities for industries that do not have direct emissions sources, such as agriculture, to utilize CCS. Furthermore, improvements in CO2 storage methods have reduced the risks associated with long-term storage, such as leakage, through advanced monitoring and verification technologies. These advancements not only lower the costs of CCS but also enhance its overall feasibility for widespread adoption, further accelerating the Australia carbon capture and storage  market growth.

Australia Carbon Capture and Storage Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on service, technology, and end use industry.

Service Insights:

• Capture
• Transportation
• Storage

The report has provided a detailed breakup and analysis of the market based on the service. This includes capture, transportation, and storage.

Technology Insights:

• Post-combustion Capture
• Pre-combustion Capture
• Oxy-fuel Combustion Capture

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes post-combustion capture, pre-combustion capture, and oxy-fuel combustion capture.

End-Use Industry Insights:

• Oil and Gas
• Coal and Biomass Power Plant
• Iron and Steel
• Chemical
• Others

The report has provided a detailed breakup and analysis of the market based on the end-use industry. This includes oil and gas, coal and biomass power plants, iron and steel, chemical, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Carbon Capture and Storage Market News:

• In 2024, Santos and Beach Energy's Moomba CCS project, operational since October 2024, has stored 340,000 tons of CO₂-equivalent by year-end. The project aims to sequester 1.7 million tons annually, positioning Australia as a potential CCS hub for the Asia-Pacific region.
• In 2024, SK Earthon secured carbon storage exploration rights in Australia, aiming to address domestic storage shortages and enhance collaboration with the Australian government and industry

Australia Carbon Capture and Storage Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia carbon capture and storage market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia carbon capture and storage market on the basis of service?
• What is the breakup of the Australia carbon capture and storage market on the basis of technology?
• What is the breakup of the Australia carbon capture and storage market on the basis of end use industry?
• What is the breakup of the Australia carbon capture and storage market on the basis of region?
• What are the various stages in the value chain of the Australia carbon capture and storage market? 
• What are the key driving factors and challenges in the Australia carbon capture and storage market?
• What is the structure of the Australia carbon capture and storage market and who are the key players?
• What is the degree of competition in the Australia carbon capture and storage market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia carbon capture and storage market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia carbon capture and storage market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia carbon capture and storage industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.