Saudi Arabia CCS Market Trends: Industrial Decarbonization, Energy Transition & Strategic Investments

According to IMARC Group's latest research publication, Saudi Arabia Carbon Capture and Storage Market size reached USD 29.8 Million in 2025. The market is projected to reach USD 57.9 Million by 2034, exhibiting a growth rate (CAGR) of 7.67% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Carbon Capture and Storage Market

• Satellite-Based Emissions Detection: IBM collaborates with SDAIA and Saudi Ministry of Energy using AI-trained satellite imaging to detect, map, and reduce carbon emissions across the Kingdom, providing unprecedented visibility into greenhouse gas sources through advanced pattern recognition.
• Optimized Capture Process Efficiency: Machine learning algorithms optimize solvent-based and membrane-based CO2 capture systems, achieving 10 to 20 percent cost reductions in industrial projects while maximizing absorption efficiency through real-time parameter adjustments at Jubail facilities.
• Geological Storage Site Monitoring: Deep learning models analyze seismic data and reservoir characteristics to predict long-term storage integrity, ensuring secure CO2 sequestration in Saudi Arabia's saline aquifer formations and preventing potential leakage through continuous monitoring.
• Predictive Maintenance and Reliability: AI-driven predictive systems analyze sensor data from capture equipment, pipelines, and injection systems to forecast maintenance needs, reducing downtime and operational costs while ensuring continuous CO2 processing at Aramco's gas plants.

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How Vision 2030 is Revolutionizing Saudi Arabia Carbon Capture and Storage Industry

Vision 2030 positions CCS as fundamental to achieving Saudi Arabia's net-zero emissions target by 2060, with the Circular Carbon Economy National Program driving systematic deployment across industrial sectors. The Saudi Green Initiative commits to reducing 278 million tonnes of CO2 emissions annually by 2030, with CCS infrastructure forming a critical pillar alongside 50 percent renewable energy generation. The Kingdom's ambitious target of capturing 44 million tonnes of CO2 per year by 2035 would match North America's entire current CCS capacity, establishing Saudi Arabia as a global decarbonization leader. Aramco's 1.5 billion dollar investment in the Jubail CCS Hub, awarded to Larsen & Toubro in February 2025, demonstrates concrete commitment to achieving net-zero Scope 1 and 2 emissions across wholly owned assets by 2050. Government policies designate Jubail and Yanbu as international CCS hubs, leveraging industrial clustering to provide shared infrastructure that reduces costs for petrochemical, steel, and cement producers while accelerating regional emission reductions.

Saudi Arabia Carbon Capture and Storage Market Trends & Drivers:

The Jubail CCS Hub represents the Kingdom's flagship decarbonization infrastructure, designed to capture 9 million tonnes of CO2 annually starting in 2027 from Aramco's gas plants at Wasit, Fadhili, and Khursaniyah alongside emissions from neighboring petrochemical and steel facilities. Aramco holds 60 percent ownership, with SLB and Linde each controlling 20 percent, creating a shared infrastructure model where multiple industrial emitters benefit from economies of scale in CO2 transport and geological storage. The captured carbon will be transported through dedicated pipeline networks and permanently stored in saline aquifer formations beneath the Eastern Province, leveraging Saudi Arabia's substantial geological capacity estimated to safely sequester billions of tonnes. By 2035, Aramco targets capturing 11 million tonnes annually from its own operations plus additional volumes from industrial partners, ultimately scaling toward the national goal of 44 million tonnes per year across all sectors.

Saudi Arabia's refining sector generates approximately 49.5 million tonnes of CO2 emissions annually across nine refineries, with individual facilities producing between 2.6 and 9.4 million tonnes per year from energy-intensive processes and carbon-heavy feedstocks. The complexity of decarbonizing refining operations makes CCS essential rather than optional, as alternative technologies cannot economically address emissions from existing infrastructure without massive operational disruptions. Aramco's expansion of the Jafurah unconventional gas field, reaching 2 billion cubic feet per day production by 2030, will increase associated CO2 emissions while simultaneously providing concentrated point sources ideal for cost-effective capture. The company's strategy of capturing CO2 from gas processing before it disperses into the atmosphere leverages superior economics compared to diffuse emission sources, with capture costs significantly lower than industrial average due to high concentration and continuous availability. This positions gas processing facilities as anchor tenants for CCS infrastructure development.

Aramco is pioneering direct air capture technology through partnerships including a demonstration plant with Siemens Energy in Germany and a domestic pilot unit capable of removing 12 tonnes of CO2 annually from ambient air. While current DAC capacity remains modest, this technology addresses emissions from dispersed sources like transportation that cannot feasibly connect to point-source capture infrastructure. The company is also developing mobile carbon capture systems for vehicles, designed to trap up to 25 percent of automotive emissions onboard for later unloading at fuel stations. Beyond technological innovation, Aramco's nature-based carbon removal initiatives include restoring mangrove habitats that have already absorbed approximately 445,000 tonnes of CO2, alongside algae cultivation systems that biologically sequester carbon from industrial facilities. These complementary approaches create a diversified carbon management portfolio addressing current industrial emissions through CCS hubs while investing in next-generation technologies and natural solutions for comprehensive decarbonization across all emission categories by 2050.

Saudi Arabia Carbon Capture and Storage Market Industry Segmentation:

The report has segmented the market into the following categories:

Service Insights:

• Capture
• Transportation
• Storage

Technology Insights:

• Post-combustion Capture
• Pre-combustion Capture
• Oxy-fuel Combustion Capture

End Use Industry Insights:

• Oil and Gas
• Coal and Biomass Power Plant
• Iron and Steel
• Chemical
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Carbon Capture and Storage Market

• February 2026: Aramco awarded Larsen & Toubro a $1.5 billion contract for the Jubail CCS hub, capturing 9 million tons of CO2 yearly from gas plants via dehydration tech, boosting Saudi Green Initiative goals with saline aquifer storage.
• January 2026: Aramco, Linde, and SLB finalized a shareholders' deal for Jubail's massive CCS facility, handling emissions from three Aramco plants plus industries, cutting 9 million tonnes annually through pipeline transport.
• March 2025: Aramco launched Saudi Arabia's first direct air capture test unit with Siemens Energy, pulling 12 tons of CO2 per year to test desert-suited materials, paving way for scaled emissions cuts.
• April 2025: Aramco launched Saudi Arabia's first Direct Air Capture test unit in collaboration with Siemens Energy, capable of removing 12 tons of CO2 annually directly from the atmosphere, representing significant technological advancement in climate mitigation beyond traditional point-source capture methods.
• February 2025: Saudi Aramco awarded a 1.5 billion dollar engineering, procurement, and construction contract to Larsen & Toubro for Phase I of the Jubail Carbon Capture & Storage hub in Eastern Province, marking the Kingdom's largest single CCS infrastructure investment under the Accelerated Carbon Capture & Sequestration initiative.

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