Market Overview

The Latin America carbon capture and storage (CCS) market size was valued at USD 0.18 Billion in 2024. It is projected to expand to USD 0.36 Billion by 2033, growing at a CAGR of 8.12% during the forecast period of 2025 to 2033. Growth is driven by improved CCS technology, decreasing costs, supportive government incentives such as tax credits and subsidies, and increasing adoption in oil and gas operations. For complete details, visit the Latin America Carbon Capture and Storage (CCS) Market (

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Latin America Carbon Capture and Storage (CCS) Market Key Takeaways

• The market size was valued at USD 0.18 Billion in 2024.
• The market is expected to grow at a CAGR of 8.12% during 2025-2033.
• The forecast period runs from 2025 to 2033.
• Tax credits, subsidies, and grants are promoting CCS adoption across Latin American countries.
• Brazil is advancing in CCS legislation, positioning itself as a regional leader in 2023.
• Technological advancements, such as direct air capture (DAC) and advanced solvent technology, are reducing costs and boosting efficiency.
• CCS integration with oil and gas operations enhances production while lowering carbon emissions.
• The TotalEnergies-led initiative to trial subsea CO2 capture tech at Brazil's Mero oilfield marks a significant development.

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Market Growth Factors

Government Incentives and Policies

In Latin America, tax breaks, subsidies, and grants are in place to promote and reduce the costs of CCS, and they are being targeted to domestic and foreign companies to promote carbon capture deployment. Governments develop internal policy roadmaps that support carbon-reducing technologies. This provides a more positive signal to industries to invest in CCS. Brazil planned to develop Bill 1425/2022, its first CCS-related legislation, in 2023 and it would supply a law defining a policy on carbon capture and storage in the country.

Technological Advancements

Advancements in direct air capture (DAC) with improved solvents are helping to drive down costs and improving the performance of CCS. These developments are making it easier to deploy CCS more widely and in higher volumes within the power, cement and steel sectors. Starting in 2024, DACMA GmbH built the first DAC plant in South America on the campus of the Universidade do PUCRS in Brazil with a capacity of 15 tons each year, showing technological maturity that increases and supporting investment from the public and private sectors toward it.

Integration with Oil and Gas Operations

CCS technologies are also being developed for use in oil and gas. In oil and gas, CCS captures carbon dioxide from gas before reinjecting it for improved oil recovery, reducing the carbon intensity of production. In 2024 TotalEnergies and a consortium announced plans to test subsea carbon capture technology, high-pressure subsea separation (HISEP), to create opportunities to bring down emissions and increase production from the Mero oilfield off the coast of Brazil.

Market Segmentation

Service Insights

• Capture: Encompasses the process of capturing CO2 emissions from industrial sources and power plants, crucial for carbon reduction.
• Transportation: Involves safe and efficient movement of captured CO2 to storage sites.
• Storage: Deals with the long-term containment of CO2 in geological formations.

Technology Insights

• Post-combustion Capture: Technology capturing CO2 after fossil fuel combustion.
• Pre-combustion Capture: Involves capturing CO2 before fuel combustion.
• Oxy-fuel Combustion Capture: Uses oxygen for combustion to produce a CO2-rich flue gas for easier capture.

End Use Industry Insights

• Oil and Gas: Uses CCS to reduce emissions and improve oilfield production.
• Coal and Biomass Power Plant: Applies CCS for emission control from power generation.
• Iron and Steel: Employs CCS to curb industrial emissions.
• Chemical: Incorporates CCS in chemical production processes.
• Others: Encompasses other industries adopting CCS technologies.

Country Insights

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

Regional Insights

Brazil emerges as a dominant country in the Latin America CCS market, evidenced by legislative progress such as Bill 1425/2022 and pioneering projects like DACMA GmbH’s DAC system and the TotalEnergies-led subsea CO2 capture trial at the Mero oilfield. The region's overall market is expected to grow at a CAGR of 8.12% from 2025 to 2033, reaching USD 0.36 Billion.

Recent Developments & News

In May 2024, PGS participated in the carbon capture, utilization, and storage (CCUS) Latin America event in Rio de Janeiro, highlighting expertise in CCS with a focus on Brazil, including CO2 storage in saline aquifers. In November 2023, Wintershall Dea, YPF, and Dow signed a Memorandum of Understanding (MoU) to explore CCS opportunities in Argentina, assessing CCS sites near the Bahía Blanca industrial cluster for potential low-carbon hydrogen production.

Key Players

• PGS
• Wintershall Dea
• YPF
• Dow
• TotalEnergies
• DACMA GmbH

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