Power Generation Carbon Capture and Storage

Global Power Generation Carbon Capture and Storage Market to Reach US$22.9 Billion by 2030

The global market for Power Generation Carbon Capture and Storage estimated at US$10.0 Billion in the year 2024, is expected to reach US$22.9 Billion by 2030, growing at a CAGR of 14.8% over the analysis period 2024-2030. Post-Combustion Capture Technology, one of the segments analyzed in the report, is expected to record a 17.4% CAGR and reach US$12.4 Billion by the end of the analysis period. Growth in the Pre-Combustion Capture Technology segment is estimated at 11.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$2.7 Billion While China is Forecast to Grow at 20.2% CAGR

The Power Generation Carbon Capture and Storage market in the U.S. is estimated at US$2.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.0 Billion by the year 2030 trailing a CAGR of 20.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.6% and 13.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.8% CAGR.

Global Power Generation Carbon Capture and Storage Market - Key Trends & Drivers Summarized

Why Is Carbon Capture and Storage Gaining Traction in the Power Generation Sector?

Carbon Capture and Storage (CCS) is emerging as a vital technology in the power generation sector`s efforts to achieve deep decarbonization and meet global climate targets. As fossil fuel-based power generation still accounts for a significant share of the global electricity mix-especially in coal, natural gas, and oil-powered plants-CCS offers a technological pathway to reduce greenhouse gas emissions without dismantling existing infrastructure. The power generation CCS market focuses on capturing CO2 from flue gases produced during electricity generation and permanently storing it underground or utilizing it in industrial processes.

Governments and international climate bodies are increasingly endorsing CCS as an essential transition strategy, especially in hard-to-abate sectors like thermal power generation. Projects in countries such as the U.S., Canada, Norway, the UK, and China are actively deploying or planning CCS retrofits in power plants to comply with net-zero targets. Integrated CCS systems, including post-combustion capture technologies, pipeline transport networks, and saline aquifer storage, are being co-developed to build carbon-neutral power ecosystems.

The justification for CCS in power lies in its compatibility with existing energy systems. It allows countries to maintain base-load reliability from fossil sources while decoupling emissions from power output. Moreover, with the proliferation of carbon pricing mechanisms and emissions trading schemes, CCS-equipped power plants can gain competitive advantage by generating lower-carbon electricity in increasingly carbon-constrained markets.

What Technological Developments Are Enhancing the Feasibility and Efficiency of CCS?

The CCS market has advanced significantly over the last decade, transitioning from conceptual feasibility to commercial demonstration. Post-combustion capture using amine-based solvents is the most mature technology, and efforts are underway to enhance solvent stability, reduce energy penalties, and improve absorption rates. New generations of solvents, such as mixed amines and amino acid salts, are being tested for their higher CO2 loading capacity and lower regeneration energy demand.

Pre-combustion capture and oxy-fuel combustion are also gaining attention in new-build power projects. Oxy-fuel combustion, which burns fossil fuel in pure oxygen instead of air, results in a high-purity CO2 stream that simplifies capture. Similarly, pre-combustion technologies used in Integrated Gasification Combined Cycle (IGCC) plants enable CO2 removal before combustion, offering higher efficiencies.

On the storage front, geological sequestration in deep saline formations, depleted oil fields, and unmineable coal seams has shown promising safety and permanence characteristics. Advances in seismic monitoring, pressure management, and plume modeling are enhancing risk mitigation and public acceptance. Transport innovations, including dedicated CO2 pipelines and ship-based transfer systems, are improving connectivity between capture sites and remote storage locations, especially in regions with distributed power generation.

Which Regions and Power Types Are Leading the CCS Deployment Curve?

North America leads the global power generation CCS market, with multiple operational projects such as Petra Nova in Texas and the Boundary Dam in Canada. These plants serve as benchmarks for integrating CCS into coal-fired operations. The U.S. Inflation Reduction Act, with enhanced 45Q tax credits, has further improved the economics of CCS retrofits and greenfield projects.

Europe is ramping up deployment through projects like the Northern Lights initiative in Norway and the UK’s East Coast Cluster, which integrate power capture with shared CO2 transport and storage networks. Germany and the Netherlands are also investing in CCS as part of their hydrogen and low-carbon industrial transition strategies. In Asia, China is piloting large-scale CCS in coal-fired and gas-fired plants, especially under its Belt and Road green energy initiatives.

The majority of deployed CCS capacity so far has been in coal and gas plants, but biomass power plants with CCS-known as BECCS-are gaining attention due to their carbon-negative potential. Utilities in Japan, Sweden, and the U.S. are exploring BECCS as part of their decarbonization roadmaps. Gas turbine operators are also evaluating CCS retrofits as natural gas transitions into a bridging fuel in many energy systems.

What Is Driving Growth in the Global Power Generation CCS Market?

The growth in the global power generation carbon capture and storage market is driven by intensifying climate commitments, rising carbon prices, and the pressing need to decarbonize base-load power sources. As renewables scale up but intermittency remains a challenge, CCS enables grid stability while aligning with decarbonization goals. Its ability to extend the utility of fossil-based infrastructure without compromising emission targets offers a practical solution in energy transition pathways.

Regulatory mandates, subsidies, and incentives such as the U.S. 45Q credits, EU Innovation Fund grants, and UK Contracts for Difference (CfDs) are financially de-risking CCS investments. Collaboration between utilities, oil & gas firms, and carbon management startups is accelerating project development across capture, transport, and storage value chains. Moreover, multi-user CO2 hubs and storage banks are reducing infrastructure redundancy and improving scalability.

As ESG metrics and green finance frameworks increasingly favor low-carbon electricity, CCS-enabled power is gaining investor attention. The convergence of policy support, technological maturity, and decarbonization urgency is setting the stage for rapid CCS scale-up in power generation-particularly in geographies with heavy fossil dependency and ambitious net-zero pledges.

SCOPE OF STUDY:

The report analyzes the Power Generation Carbon Capture and Storage market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Technology (Post-Combustion Capture Technology, Pre-Combustion Capture Technology, Oxy-Fuel Combustion Technology, Direct Air Capture Technology); Capture Methodology (Absorption Capture Methodology, Adsorption Capture Methodology, Membrane Separation Capture Methodology, Cryogenic Distillation Capture Methodology); Storage Method (Geological Storage Method, Ocean Storage Method, Mineral Carbonation Storage Method, Other Storage Methods); Application (Coal-Fired Power Plants Application, Natural Gas Power Plants Application, Industrial Processes Application, Bioenergy with Carbon Capture & Storage Application); End-User (Utility Sector End-User, Industrial Sector End-User, Government & Regulatory Bodies End-User)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• Aker Carbon Capture ASA
• Air Liquide
• Baker Hughes
• BASF SE
• Carbon Clean
• Carbon Engineering Ltd.
• CarbonCure Technologies Inc.
• Climeworks
• ExxonMobil Corporation
• Fluor Corporation
• General Electric (GE Vernova)
• Halliburton Company
• Hitachi Zosen Inova AG
• Honeywell International Inc.
• Linde plc
• Mitsubishi Heavy Industries
• Schlumberger Ltd. (SLB)
• Shell plc
• Siemens Energy AG
• Veolia Environnement S.A.

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