Latin America Carbon Capture and Storage (CCS) Market

Latin America Carbon Capture and Storage (CCS) Market Overview:

The Latin America carbon capture and storage (CCS) market size reached USD 0.18 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 0.36 Billion by 2033, exhibiting a growth rate (CAGR) of 8.12% during 2025-2033. Factors propelling market growth include improved technology, decreased cost, the promotion of development through tax credits, subsidies, and grants, and increased integration with oil and gas operations.

Latin America Carbon Capture and Storage (CCS) Market Trends:

Government Incentives and Policies

Incentives and policies for the adoption of CCS technologies are being promoted by various countries in Latin America. These include granting tax credit, subsidy, and/or granting to industries that wish to invest in carbon capture projects. The grants are aimed at mitigating the financial barriers to the adoption of CCS and thereby encouraging both domestic and international companies to leverage the technology. Authorities in Latin America are particularly active in developing an internal policy road map with priority on carbon-reduction technologies such as CCS. The incentives are consolidating market confidence in the CCS technologies and making it easier for the industries to justify the initial investment in the implementation of CCS systems. In 2023, Brazil moved closer to enacting its first carbon capture and storage (CCS) legislation, positioning itself as a South American leader in this area. Bill 1425/2022, which was approved by a special committee, aimed to establish a legal framework for CCS activities.

Technological Advancements

Advancing CCS technologies continue to bring down costs while increasing efficiencies in carbon capture, transport, and storage. With such improvements, CCS will not only be more accessible but also much more viable for large-scale adoption in different sectors. New innovations such as direct air capture (DAC) and advanced solvent technology for carbon capture will spur the application of CCS, overcoming the previous limitations associated with both the technical and economic aspects of the process. These technological developments are encouraging investments from both the public and private sectors as stakeholders see the potential for integrating CCS into industries such as power generation, cement production, and steel manufacturing. In 2024, DACMA GmbH commissioned its first DAC system in South America, located at the University of PUCRS in Porto Alegre, Brazil. This plant, with a capacity of 15 tons per year, marks a notable milestone for carbon capture technology in the Latin America.

Integration with Oil and Gas Operations

The integration of CCS with oil and gas operations, where carbon capture is being used to lower emissions and enhance production. Companies in the Latin America are adopting CCS technologies in oilfields to address environmental concerns while maintaining output. By capturing CO₂ from natural gas and reinjecting it into reservoirs, oil producers can not only lower their carbon footprint but also increase oil recovery and optimize resource extraction. This application of CCS, especially in subsea operations, is becoming a key strategy for industries dependent on fossil fuels. In 2024, the TotalEnergies-led group revealed intentions to trial subsea CO₂ capture tech at Brazil's Mero oilfield. The initial trial will employ high-pressure subsea separation (HISEP) technology to separate CO₂-rich natural gas on the seafloor and then reinject the captured CO₂ back into the reservoir, with the goal of cutting emissions and boosting field production capacity.

Latin America Carbon Capture and Storage (CCS) Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level 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

A detailed breakup and analysis of the market based on the end use industry have also been provided in the report. This includes oil and gas, coal and biomass power plant, iron and steel, chemical, and others.

Country Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

The report has also provided a comprehensive analysis of all the major country markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others.

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.

Latin America Carbon Capture and Storage (CCS) Market News:

• May 2024: PGS announced participation in the carbon, capture, utilization, and storage (CCUS) Latin America event in Rio de Janeiro, showcasing its expertise in CCS with a focus on Brazil. The event focuses on the CO₂ storage capacity in saline aquifers and the utilization of old seismic data for characterizing CCS sites.
• November 2023: A Memorandum of Understanding (MoU) was signed by Wintershall Dea, YPF, and Dow in order to explore carbon capture and storage (CCS) opportunities in Argentina. The companies have assessed potential CCS sites near the Bahía Blanca industrial cluster and those sites also could have supported the production of low-carbon hydrogen.

Latin America Carbon Capture and Storage (CCS) Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America carbon capture and storage (CCS) market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America carbon capture and storage (CCS) market on the basis of service?
• What is the breakup of the Latin America carbon capture and storage (CCS) market on the basis of technology?
• What is the breakup of the Latin America carbon capture and storage (CCS) market on the basis of end use industry?
• What is the breakup of the Latin America carbon capture and storage (CCS) market on the basis of country?
• What are the various stages in the value chain of the Latin America carbon capture and storage (CCS) market? 
• What are the key driving factors and challenges in the Latin America carbon capture and storage (CCS)?
• What is the structure of the Latin America carbon capture and storage (CCS) market and who are the key players?
• What is the degree of competition in the Latin America carbon capture and storage (CCS) 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 Latin America carbon capture and storage (CCS) market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America carbon capture and storage (CCS) 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 Latin America carbon capture and storage (CCS) 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.