Europe Carbon Capture and Storage Market Size & Share 2026-2035

Europe Carbon Capture and Storage Market Size

Europe carbon capture and storage market was estimated at USD 2.4 billion in 2025. The market is expected to grow from USD 5 billion in 2026 to USD 24.2 billion in 2035, at a CAGR of 19.1%, according to a recent study by Global Market Insights Inc.

• The regional market is witnessing significant growth as industries intensify efforts to decarbonize and meet stringent climate goals. With a focus on mitigating greenhouse gas emissions, CCS technology is being rapidly adopted across energy, industrial, and manufacturing sectors.
• Increasing regulatory support, including carbon pricing mechanisms and subsidies, is catalyzing investments in CCS projects. For instance, in February 2026, the Norway government exempted the EU ETS-regulated industry from domestic carbon dioxide tax, thereby ending double carbon pricing.
• The market is being further propelled by advancements in capture technologies, including chemical absorption and membrane-based systems, which are enhancing efficiency and reducing operational costs. For instance, in December 2025, Stockholm Exergi decide to build a large-scale capture and storage of carbon dioxide using BECCS at its bioenergy-generation plant in Stockholm’s Värtan.
• Industrial clusters are increasingly adopting shared CCS infrastructure, enabling economies of scale and fostering collaborative solutions among multiple stakeholders. The development of dedicated CO2 transport and storage networks, including pipelines and offshore storage facilities, is a critical component driving the market's expansion.

Europe Carbon Capture and Storage Market Trends

• The Europe carbon capture and storage industry is experiencing a transformation driven by strong government support, industrial adoption, technological innovation, increased investment and a growing understanding of the crucial role CCS plays in achieving ambitious climate goals.

• Proactive stance of European governments, exemplified by initiatives including the European Green Deal have resulted in increased funding, incentives, and supportive policies for CCS endeavors favoring industry growth. For instance, in May 2026, the European Commission approved over USD 5 billion aid scheme to assist decarbonization of industry across Germany.

• The increasing demand for low-carbon products and energy solutions is driving CCS adoption in sectors such as cement, steel, and chemicals, where emissions are difficult to eliminate through conventional methods. For instance, in December 2025, MHI and Worley decided to supply a CCS facility to Heidelberg Materials UK's Padeswood cement works. The facility is set to be operational in 2029 and will capture around 800,000 tonnes of CO2 per year.
• Growing collaborations between technology providers, project developers, and industrial operators are accelerating innovation and deployment. The increasing demand for low-carbon products and energy solutions is driving CCS adoption in sectors such as cement, steel, and chemicals, where emissions are difficult to eliminate through conventional methods.

Europe Carbon Capture and Storage Market Analysis

• Based on technology, the Europe carbon capture and storage market is segmented into pre-combustion, post combustion, and oxy-fuel combustion. The post combustion technology market will grow at a CAGR of 30.4% by 2035. The continuous and rapid growth in energy demand from oil and gas facilities or refining processes is expected to complement the post-combustion technology.
• The technology is being developed and implemented across refineries to reduce emissions generated by heavy processes across oil & gas and cement applications. For instance, in April 2026, Heidelberg Materials project at the Rezzato–Mazzano cement plant in Brescia, Italy have been initiated. It will use post-combustion technology at its white clinker production line, which in turn will increase the CO2 capture rate.
• Pre-combustion technology will grow at a rate of 6.6% through 2035, driven by its excessive use across oil & refining industries. Significant cost reductions have been achieved in large-scale CCS deployment, and this trend is expected to continue, particularly with its widespread applications in power plants and the oil and gas industries.

• Based on application, the Europe carbon capture and storage market is categorized into oil & gas, chemical processing, power generation, among others. The power generation application market will grow at a CAGR of over 15% by 2035. Carbon capture and storage (CCS) in power generation is expected to become one of the fastest-growing applications, as power plants are significant contributors to carbon emissions.

• Capturing carbon in power plants enables the use of low-cost fossil fuels for electricity generation while simultaneously reducing greenhouse gas emissions. For instance, in July 2025, Sulzer was selected Net Zero Teesside (NZT) Power project in Teesside, northeast England. The company will use its separation technology to capture around 2 MTPA of CO₂ annually for permanent storage offshore in the North Sea.

• The oil & gas application market will grow at a CAGR of 22.4% by 2035. The implementation of policy frameworks that support emission reduction across multiple oil & gas refining processes will enhance the business environment and drive industry growth in the coming years.

• For instance, in August 2025, Halliburton won a completion and downtown monitoring services contract for Northern endurance partnership CCS project in UK. The contract involves the construction and delivery equipment for partnership CCS project needed for carbon capture across an onshore compression facility.

• UK market was estimated at USD 662.5 million in 2025. The UK carbon capture and storage (CCS) market is experiencing rapid growth driven by strong government commitments to reduce emissions and achieve net-zero targets by 2050. Initiatives including the CCUS Action Plan and funding for CCS projects are propelling the sector.
• For instance, in May 2026, the UK government set to introduce an Energy Independence Bill to increase homegrown renewable energy and boost energy security. This in turn will implement various measures that will further uplift the CCS industry across the country in years to come.
• Netherlands CCS market will grow at a CAGR of 18.4% by 2035. The country is focusing on industrial-scale CCS projects, particularly in power generation and heavy industries. For instance, in May 2025, Netherlands government decided to fund USD 726 million in its Aramis CCS project, following the withdrawal of financial support by key partners Shell and TotalEnergies.
• Norway CCS market will reach USD 3.4 billion by 2035, owing to expanding its CCS market as part of its ambitious climate strategy to achieve carbon neutrality by 2050. The government has been investing heavily in CCS research, development, and infrastructure, focusing on integrating CCS with renewable energy and hydrogen production.
• The country’s strong policy support, including carbon pricing mechanisms and EU climate regulations is driving further growth and innovation in the CCS sector. For instance, in March 2026, Norway’s Northern lights CCS project began injecting its first volume of biogenic carbon dioxide, which was captured from wastewater treatment.

Europe Carbon Capture and Storage Market Share

The top 5 companies, including Shell, Equinor, TotalEnergies, Linde, and Air Products catered over 35% market share in 2025. These companies in the Europe carbon capture and storage (CCS) market are transforming the industry by integrating CCS into carbon markets. Shell, Equinor, TotalEnergies, ExxonMobil, and Eni are the major companies engaged as project developers and have a strong presence across the region, catering to their major market share.

Companies including Linde, Air Products, SLB, Aker Solutions, Mitsubishi Heavy are not only leveraging CCS to meet emission reduction targets but are also exploring opportunities to monetize carbon capture and storage across the region. For instance, in March 2026, Aker Solutions won a FEED contract for a CO2 terminal in Lithuania. This shift is fostering the development of new business models and revenue streams within the sector.

Europe Carbon Capture and Storage Market Companies

Major players operating in the Europe carbon capture and storage industry are:

• Air Products

• Aker Solutions
• Chevron
• Dakota Gasification
• Eni
• Equinor
• Exxon Mobil
• Fluor
• General Electric
• Halliburton
• Harbour Energy
• Linde
• Mitsubishi Heavy
• NRG Energy
• Ørsted
• Shell
• Siemens
• SLB
• Sulzer
• TotalEnergies

Europe Carbon Capture and Storage Industry News

• In May 2026, Aker Solutions, Vår Energi, and KNCC signed a memorandum of understanding to advance the Trudvang CCS project in North Sea, Norway. The partnership will strengthen CO2 storage development and operations, and marine transportation.
• In February 2026, the government of Sweden have initiated building the infrastructure needed to scale carbon capture and storage along with a new state support of USD 3.4 million to the Malmö CO2 Hub.
• In February 2026, the government of Italy decided to provide a support package of around USD 2 billion, focusing on accelerating emission reduction across the country. The funding will be distributed for over 15 years across various CCS projects and is anticipated to reduce emissions by an estimation of 3.8 MTPA.
• In December 2025, the Sweden Energy Agency decided to fund around USD 1 billion for a support scheme for bio-CCS plant. The funding will be allocated through a reverse auction, in turn resulting in lower bidder winning process. This is anticipated to fasten the construction BCCS plant, thereby resulting in curbing carbon emissions.