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Carbon Capture Plus Direct Air CO2 Capture Market

Updated: Nov 24, 2022

The cryptocurrency market has taken hold in the investor world. And we've all witnessed the meteoric rises in value of Ethereum, Dogecoin and Bitcoin. The wild swings in valuation can make a investors head swivel just trying to keep up. Now enters carbon capture a burgeoning $6 Billion market that's taking flight, as global climate change wrecks havoc on once fertile land across Europe, United States, South America, Africa and throughout Asia.

Already the U.S. Treasury and IRS (Internal Revenue Service) have passed tax credit plans, Section 45Q that places values on carbon capture for each metric ton either disposed of in a secure geological storage place or used for certain purposes, such as a tertiary injectant in connection with certain oil or natural gas extraction processes (U.S. Treasury Report 2021). Carbon capture and direct air carbon capture are necessary to fight climate change.

Carbon capture is a key technology for decarbonizing the industrial sector and can also play a role in the electric power sector. The revamped 45Q carbon capture tax credit has been on the books since 2018, but final guidance from the Internal Revenue Service (IRS) on how to claim the credit is still forthcoming. Without the tax extension, project developers needed to commence construction before the end of 2023 to take advantage of a credit of up to $50/ton for every ton of CO2 permanently stored underground over 12 years of operation. A $35/ton payment is available for CO2 captured and used in products or for enhanced oil recovery.

The shrinking window to get projects designed, financed, and underway by the deadline and with clarity from the IRS meant about 29 million tons of industrial carbon capture capacity could be deployed based on our estimates. Extending the deadline by two years provides a lot more time for projects in a wide variety of applications to get off the ground. We estimate that the extension could drive 82-142 million tons of total capture capacity before the new deadline at the end of 2025, depending on carbon capture technology costs. That’s an additional 53 to 113 million tons of capture capacity that would not happen but for this new legislation. This step change in deployment will yield meaningful cumulative industrial emission reductions of 342-585 million tons between now and 2035 compared to the original 2023 deadline depending on technology costs. It will take more time to assess what the deadline extension will mean for carbon capture in the electric power sector where technology costs are higher.

Today, leading edge innovators such as Elon Musk, Microsoft and oil giants like Occidental and Exxon Mobil are investing in carbon capture technologies. Carbon Engineering and Climeworks are two start-ups that have built machines to suck CO2 straight out of the atmosphere in a process known as direct air capture. But the technology faces a number of challenges, one of which is that there’s currently no market for the captured CO2. As a result, some companies are selling their captured CO2 to oil companies, which use it to produce even more oil. Particularly, carbon offsets which utilize capture carbon is a big opportunity. is actively working with business partners in the carbon capture and direct air carbon capture markets. While some argue that carbon capture efforts are unnecessary, most scientists believe it is a useful component to reach net zero carbon emissions. And there are 21 large-scale CCUS commercial projects in operation worldwide and plans for at least 40 new commercial facilities have been announced in recent years.

Investment opportunities in the carbon capture and direct air carbon capture industries such as The KraneShares Global Carbon ETF (KRBN), The VanEck Vectors Low Carbon Energy ETF (SMOG) and The iShares MSCI ACWI Low Carbon Target ETF (CRBN) offer attract potential long-term returns.

Among companies leading carbon capture technology developments include :

Net Power


Carbon Engineering

Global Thermostat


BluePlanet (converts carbon capture into high value building materials)


Venture Capital firms are putting money into the carbon capture industry at a pace now of almost $450 Million per year. In addition, major energy companies such as Exxon, Chevron, BP and Siemens are targeting billions of dollars for the development of carbon capture technology. Carbon capture and storage offers nearly 25% annual growth rate CAGR. helps innovative entrepreneurs from every background and income level with mentoring and professional business development solutions. Checkout business services below.

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