IDTechEx, an independent research provider with a global presence, has released a new report that looks into the carbon dioxide removal (CDR) market and technologies, forecasting that in 2035 the revenue from engineered carbon removal credits will surpass $14 billion.
The report, named “Carbon Dioxide Removal (CDR) 2025-2035: Technologies, Players, Carbon Credit Markets, and Forecasts,” assessed different kinds of technologies that pull carbon dioxide from the atmosphere, safely storing it for long periods of time.
The eight technologies considered in the report include temperature-based direct air capture (DAC), electrochemical DAC, BECCS, biochar, biomass burial, direct ocean capture (DOC), ocean alkalinity enhancement (OAE), and enhanced rock weathering (ERW).
According to the report, as demand for carbon removal continues to increase with approaching climate target deadlines, besides relying on nature-based solutions, the CDR industry will need to employ additional engineered CO2 removal technologies to be able to deliver the needed results for reaching global net-zero by 2050.
Based on granular evaluations and in-depth analysis, the report estimates that in 2035, the revenue from carbon credits generated by engineered CO2 removal technologies will exceed $14 billion.
Additionally, the report signals that in 2025, the direct air capture (DAC) industry will reach the milestone of megatonne carbon removal levels.
With Climeworks signing a deal with Morgan Stanley for the removal of 40,000 tons of CO2 and the completion of Project Stratos by 1PointFive slated for 2025, the megatonne carbon removal objective is well within the reach of the DAC sector.
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Another noteworthy trend that emerged from the research for this report is the increase in development of electrochemical CDR as a way to address the high-energy requirements conventionally associated with many engineered carbon removal technologies.
Beyond energy efficiency, electrochemical solutions also offer better compatibility with intermittent renewable energy sources, including wind and solar power.
In this regard, the report outlines that electrolysis and electrodialysis technologies are the leading choice of direct ocean capture developers, while the demand for similar pH-swing electrochemical approaches is most evident in the direct air capture space.
