In the face of climate change and environmental degradation, the shift towards sustainable energy is not just a necessity but a revolution. Sustainable energy encompasses sources that are renewable and have minimal impact on the environment, ensuring that future generations can meet their energy needs without compromising the planet.
This blog explores the significance of sustainable energy and delves into the findings of the 2024 Sustainable Energy Research Review, highlighting the growth and potential of carbon dioxide removal, carbon credits, biorefinery products, and sustainable marine fuels.
Why Sustainable Energy Matters?
Sustainable energy is crucial for several reasons:
- Environmental Conservation: Unlike fossil fuels, sustainable energy sources such as wind, solar, and hydropower produce little to no greenhouse gases, helping to mitigate climate change.
- Energy Security: By diversifying energy sources, countries can reduce their dependence on imported fuels, enhancing energy security.
- Economic Growth: The sustainable energy sector is a significant driver of economic growth, creating jobs and fostering innovation.
This Research Review includes highlights and excerpts from the following reports published by BCC Research in 2024:
The global market for carbon dioxide removal (CDR) is projected to grow from $3.4 billion in 2024 to $25.0 billion by 2029, at a compound annual growth rate (CAGR) of 49.0%. CDR technologies, such as direct air capture and bioenergy with carbon capture and storage (BECCS), are essential for achieving net-zero emissions. These technologies are gaining momentum due to increased government funding and stricter carbon regulations.
Key facts:
- The EMEA region is expected to witness significant growth in the upcoming years as it recognizes the importance of CDR technologies for environmental sustainability and aims to achieve self-reliance and carbon neutrality across the value chain by 2050. The launch of ETS, carbon taxes, and other regulations are strengthening the demand for CDRs in the region.
- A single ton of biochar can capture approximately 2.68 tCO2e from the atmosphere. The annual CDR potential of biochar is around 2.65 billion tCO2e. Thus, it has significant potential in the global carbon dioxide removal market. Also, it is more economical compared to other CDR technologies. The average price of biochar is around $2.65 per kg, which can be as low as $0.09 per kg to as high as $8.85 per kg. For blended biochar, the price ranges between $0.08 per kg and $13.48 per kg.
Carbon credits are a vital tool in the fight against climate change. The market for carbon credits is expected to expand from $342.6 billion in 2024 to $1.2 trillion by 2029, at a CAGR of 28.4%. This growth is driven by corporate commitments to sustainability and the need for businesses to offset their carbon emissions. High-quality carbon removal credits are particularly in demand, commanding premium prices.
Key facts:
- The CCUS cost depends on the availability and cost of energy sources, which varies regionally. China and Japan have a presence of leading CO2-based polymer companies, thus overtaking Western companies in R&D for the utilization of captured carbon in the chemicals industry.
- Most of the R&D in the CCUS industry focuses on cost reduction, especially for carbon capture, as carbon capture service is the major cost center in the overall capex, accounting for around 75% of the share. U.S. DOE has set its targets to reduce the cost of carbon capture to less than $40 per ton by 2025 and $30 per ton by 2035.
Biorefineries are revolutionizing the production of fuels, chemicals, and materials. The global market for biorefinery products is anticipated to grow from $775.2 billion in 2024 to nearly $1.2 trillion by 2029, at a CAGR of 8.8%. These facilities convert biomass into a range of sustainable products, reducing reliance on fossil fuels and promoting a circular economy. Advances in enzymatic hydrolysis and catalytic processes are enhancing the efficiency of biorefineries.
Key facts:
- Only 10%-15% of the output from petroleum refineries is diverted to the petrochemical industry for the synthesis of organic chemicals, leaving 85%-90% to produce fuels – a competitive figure for biorefineries to produce a number of organic compounds and fuels.
- The European bioeconomy employs more than 19 million people.
The shipping industry is a significant contributor to global greenhouse gas emissions. Sustainable marine fuels, such as hydrogen, ammonia, methanol, and biofuels, offer a cleaner alternative to traditional fossil-based marine fuels. Although they currently account for less than 1% of total marine fuel consumption, the market is poised for substantial growth. The global market for sustainable marine fuels is expected to reach $3.4 billion by 2028, demonstrating a CAGR of over 59.4%.
Key facts:
- The APAC region is expected to witness the highest growth in the upcoming years as it recognizes the importance of sustainable marine fuels in marine industry. Region has nine among top ten largest container ports in the world, hence, highest demand of sustainable fuels is expected from the region. These ports are mainly located in China, Singapore, and Korea.
- According to UNCTAD, the top three carbon dioxide emitters, namely China, the U.S., and India, accounted for more than 50% of emissions, and the top 20 accounted for 80% of the global emissions.
Conclusion
This Research Review underscores the dynamic and rapidly evolving landscape of sustainable energy technologies. From carbon dioxide removal to biorefinery products and sustainable marine fuels, these advancements are paving the way for a greener, more resilient future. As we continue to innovate and invest in these technologies, we move closer to achieving global decarbonization goals and creating a sustainable world for future generations.
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