Saudi CCS & Carbon Markets: $334.79M by 2033, Driven by Vision 2030
Saudi Arabia’s carbon capture and storage (CCS) market is growing and evolving with purpose. Starting at USD 107.93 million in 2025, it’s on track to reach USD 334.79 million by 2033, expanding at a 15.2% CAGR. But behind the numbers lies a deeper story: this isn’t merely a tech upgrade. It’s a national pivot toward climate accountability, industrial reinvention, and a future where carbon isn’t just captured, but reimagined as part of a sustainable energy ecosystem.
Vision 2030 Spurs CCS Investment: $800K Tons CO₂ Targeted Annually
Saudi Arabia’s Vision 2030 and Net-Zero by 2060 goals have catalyzed CCS adoption. Flagship projects like Saudi Aramco’s Uthmaniyah CCS, which aims to capture 800,000 tons of CO₂ annually, exemplify the country’s commitment to decarbonizing its oil and gas sector. The Saudi Green Initiative (SGI) and the National Industrial Development and Logistics Program (NIDLP) are aligning policy and infrastructure to scale CCS across industries.
Pre-Combustion Capture Leads Tech Segment with 14.7% CAGR
Among CCS technologies, pre-combustion capture dominates, growing at a 14.7% CAGR. This method, which isolates CO₂ before fuel combustion, is particularly suited to Saudi Arabia’s gas processing and refining sectors. With fossil fuels still central to the energy mix, pre-combustion technologies offer a pragmatic path to emissions reduction while maintaining energy output.
Capture Services Dominate: Industrial Demand Fuels 14.7% CAGR
Capture services, the backbone of CCS, are expected to grow at 14.7% CAGR, driven by demand from petrochemical and cement industries. Facilities like the Hawiyah CO₂ Injection Facility are already operational, and expansion across industrial zones is underway. As the NIDLP prioritizes sustainable manufacturing, capture services will be critical to meeting emissions targets.
Catalytic Conversion Surges: 15.6% CAGR in CO₂ Utilization
Catalytic conversion is the standout in CO₂ utilization technologies, projected to grow at 15.6% CAGR. This process transforms captured CO₂ into methanol, synthetic fuels, and plastics. SABIC’s Innovation Center is pioneering these efforts, turning emissions into economic assets. The result is a dual benefit: environmental mitigation and industrial value creation.
Oil & Gas Sector Drives CCS Demand: 16.0% CAGR Forecast
The oil and gas sector remains the largest end-user, with a projected 16.0% CAGR. Power plants like Riyadh Power Plant and Jeddah South Thermal Power Plant are prime candidates for CCS retrofits. Enhanced Oil Recovery (EOR) practices, which inject CO₂ into aging fields, further integrate CCS into existing infrastructure, creating a closed-loop carbon system.
Regional CCS Hotspots: Riyadh, Jeddah, Dhahran, Dammam, Mecca
Saudi CCS & Carbon Markets are geographically diverse:
- Riyadh: A hub for refining and chemical CCS projects.
- Jeddah: Thermal power and Red Sea sequestration potential.
- Dhahran: Aramco’s HQ and EOR innovation center.
- Dammam: Industrial base for catalytic conversion and capture.
- Mecca: Emerging green energy hub integrating CCS with solar.
These cities represent the multifaceted deployment of CCS across energy, industry, and sustainability sectors.
Hydrogen & EOR Synergies Create Long-Term CCS Opportunity
Saudi Arabia’s push into blue hydrogen, which relies on CCS, creates a sustainable growth loop. Projects like Jazan Energy’s hydrogen initiative will amplify CCS demand. Coupled with EOR, which reuses captured CO₂, the kingdom is building a carbon economy that aligns with both climate goals and industrial profitability.
Infrastructure Costs Remain a Barrier, But Policy Momentum Persists
Despite strong policy support, high infrastructure costs and geological challenges pose hurdles. Pipeline networks, monitoring systems, and suitable storage sites require significant investment. Yet, with government backing and industrial buy-in, these barriers are being addressed through strategic planning and international collaboration.
Saudi CCS & Carbon Markets Set for Regional Leadership
Saudi Arabia is positioning itself as a regional leader in CCS. With robust growth across capture, conversion, and utilization technologies, and deep integration into oil, gas, and hydrogen sectors, the market is poised for sustained expansion. The synergy between climate ambition and industrial strategy makes Saudi CCS & Carbon Markets a cornerstone of the kingdom’s energy transition.
Also Read: Saudi Carbon Capture and Storage Market to Store 44M Tons by 2035
