Europe Power Generation Carbon Capture and Storage Market Size & Share 2025 - 2034

Europe Power Generation Carbon Capture and Storage Market Size

The Europe power generation carbon capture and storage market was valued at USD 716.2 million in 2024. The market is expected to grow from USD 974.3 million in 2025 to USD 5.5 billion by 2034, at a CAGR of 21.2%, according to Global Market Insights Inc.

• The power generation industry is consistently pursuing cleaner generation with the incorporation of different technological innovations. The prolific growth across the sector is accompanied by the release of carbon emissions, which has necessitated the widespread adoption of carbon capture and storage technologies across the region.
   
• Growing adoption of cluster-based models, where multiple emitters within industrial zones share infrastructure for CO₂ capture, transport, and storage, is bolstering the industrial growth.  This approach is gaining traction due to its ability to reduce capital costs, streamline logistics and supported by national and EU-level funding, enabling coordinated development and operational efficiency.
   
• For instance, in April 2025, the European Investment Bank (EIB) granted a loan of over USD 300 million to Exergi for the construction of Sweden's first large-scale bioenergy plant with carbon capture and storage (BECCS). The plant is expected to be fully operational in 2028 and is projected to capture up to 800,000 tons of carbon dioxide per year.
   
• Shifting trends toward clean energy coupled with strict environmental norms to minimize carbon emissions will propel the industry's growth across the power generation applications. In addition, the EU’s Net-Zero Industry Act (NZIA) has set a target of 50 million tons of CO₂ injection capacity annually by 2030, reinforcing CCS as a strategic priority, in turn adding to the Europe power generation carbon capture and storage market growth.
   
• The growth of regional industry is further driven by the Industrial Decarbonization Accelerator Act, the revision of the EU Emissions Trading System (ETS), and the development of an EU regulatory package on CO₂ transport infrastructure. In addition, the EU Industrial Carbon Management (ICM) Strategy will support the creation of a common and harmonized approach to the transport of CO2 to facilitate the development of several cross-border CCS initiatives currently taking shape in Europe.
   
• Technological advancements along with increasing carbon storage facilities across various countries in the region are accelerating the industry outlook. For instance, as per the Global CCS Institute Europe forum held in May 2025, maximum storage capacity developed in Europe is concentrated around the North Sea, but new storage opportunities are emerging in countries including Italy, Greece, Bulgaria, and Romania, serving to address regional disparities in CO₂ storage capacity.
   
• Innovations span the entire CCS value chain, including advanced capture techniques, modular transport systems, and improved storage monitoring, further augmenting the business landscape. The integration of digital technologies is also improving operational transparency and safety, addressing public and regulatory concerns. As technology matures, retrofitting existing power plants with CCS is becoming more feasible, expanding the market potential across Europe.
   

Europe Power Generation Carbon Capture and Storage Market Trends

• Continuous & exponential rise in post-combustion CCS as a retrofit solution, along with the rising trend of purpose-built carbon-capture-ready plants, is augmenting the industry landscape. Rather than decommissioning coal or gas-fired assets, operators are increasingly investing in solvent-based CO₂ capture systems to reduce emissions from their existing fleets.
   
• For instance, in May 2025, the European Commission adopted a delegated regulation specifying the identification and calculation rules that apply to European oil and gas producers required to provide new CO2 storage solutions by 2030. It included the setting out the individual shares of oil and gas producing companies in fulfilling the EU’s collective target of 50 million tonnes of annual CO2 injection capacity into geological CO2 storage sites by 2030.
   
• New-built power stations are now being designed as carbon capture ready, meaning the physical and operational layout includes space and integration points for future CCS installation. This trend is prevalent in natural gas combined cycle (NGCC) plants that are being constructed with the expectation that capture systems will be added within the next decade as regulatory environments tighten.
   
• For instance, in June 2025, SLB Capturi, in collaboration with Aker Solutions, completed an EPCIC contract to implement a carbon capture system at Hafslund Celsio’s waste-to-energy facility in Oslo. This project, the second under Norway’s Longship initiative, featured SLB Capturi’s modular Just Catch 400 unit, designed to capture approximately 350,000 metric tons of CO₂ annually.
   
• The integration of CCS with emerging energy technologies including blue hydrogen and bioenergy with carbon capture and storage (BECCS) is opening new avenues for growth. These hybrid applications are enhancing the versatility of CCS and aligning with Europe’s broader energy transition goals.
   
• The synergies between CCS and low-carbon fuels are creating diversified revenue streams and strengthening the business case for CCS in power generation. When biomass is combusted in a power plant and the resulting CO₂ is captured and stored, the system achieves net-negative emissions pulling carbon out of the atmosphere and locking it underground.
   
• Implementation of high-profile pilot and commercial-scale BECCS projects backed by federal investments across the region is swaying the industry growth. For instance, in July 2024, the EU approved aid scheme for CCS from biomass processing in Sweden by allotting over USD 3 billion. This in turn will contribute to the achievement of Sweden's climate targets and the EU's strategic objectives under the European green deal.
   

Europe Power Generation Carbon Capture and Storage Market Analysis

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• The CCS market in Europe is witnessing strong momentum driven by EU climate targets, industrial decarbonization, oil & gas transition strategies, the emergence of cross-border CO₂ transport and storage infrastructure, and a growing emphasis on carbon dioxide removal (CDR) solutions, especially in hard-to-abate sectors.
   
• European countries are accelerating CCS deployment not only for climate compliance, but also to preserve industrial competitiveness and enable green hydrogen production (via blue hydrogen pathways). The European Union’s goal to become climate-neutral by 2050, and intermediate 2030 goals, is a top-down policy force catalyzing CCS deployment is augmenting a favorable scenario for Europe power generation carbon capture and storage market growth.
   
• For instance, in November 2024, Air Products announced the construction of a cutting-edge carbon capture and CO₂ treatment facility at its existing hydrogen plant in Rotterdam, the Netherlands by 2026. The facility was designed to produce "blue" hydrogen by capturing carbon emissions, supplying ExxonMobil’s Rotterdam refinery and other customers through Air Products' established hydrogen pipeline network.
   
• Heavy industries across the region are using CCS to comply with sector-specific emission reductions, especially in countries with hard-to-abate clusters. For instance, the Porthos project in Rotterdam began CO₂ pipeline construction and signed final storage agreements to capture 2.5 million tonnes of CO₂ annually from local industry starting in 2026.
   
• European CCS projects are also backed by the EU Innovation Fund, national programs like the UK’s Cluster Sequencing and the Norwegian Longship initiative, and multinational joint ventures (JVs) and PPPs. These investments are creating a significant opportunity for industry expansion. The oil and gas companies in Europe are repositioning CCS as a core business strategy for decarbonizing their own operations commercializing CO₂ transport and storage services for low-carbon fuel markets.
   
• Countries including Norway, UK, Denmark, and the Netherlands are expanding CCS infrastructure, supported by cross-border CO₂ transport networks, which in turn is propelling the industry's growth. For instance, in December 2024, the Greensand Future project in Denmark, led by INEOS and Harbour Energy, which aims to capture and store 400,000 tonnes of CO₂ annually by 2025, with plans to expand to 8 million tonnes per year by 2030, will augment the industry growth down the line.
   

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• Based on technology, the market is segmented into pre combustion, post combustion, and oxy-fuel combustion. Post combustion technology showcased 70% market share in 2024. The technology remains one of the most widely deployed technologies, particularly in the power generation sector, due to its flexibility and strong retrofit potential.
   
• Rising integration with renewable energy and heat recovery systems is bolstering the technology adoption. To compensate for over 20%-30% of a power plant's output to run the capture system in the traditional way, innovative designs are increasingly integrating renewable energy sources, including onsite solar and wind to power solvent regeneration systems and auxiliary equipment.
   
• The technology’s ability to integrate seamlessly into both existing and new coal-fired or gas-fired power plants without requiring major alterations to core combustion systems continues to bolster its adoption. Additionally, its scalability and maturity have made post-combustion capture a go-to solution for industrial facilities seeking compliance with tightening global emissions standards.
   
• For instance, in September 2024, Mitsubishi Heavy Industries deployed their KM CDR Process technology to remove around 25,000 tonnes of CO₂ annually at Europe's first fully operational post-combustion carbon capture plant, which is part of the Ravenna Carbon Capture and Storage project launched by Eni and Snam near Ravenna, Italy.
   
• The pre-combustion CCS technology will grow at a CAGR of 15% till 2034. Growing regulatory pressure to curb carbon emissions has fueled widespread adoption of advanced sustainable technologies, including pre-combustion carbon capture systems. This method involves converting solid, liquid, or gaseous fuels into a mixture of hydrogen and carbon dioxide through gasification or reforming prior to combustion.
   
• The oxy-fuel combustion technology stood at USD 73 million in the year 2024.      Oxy-fuel combustion represents another promising avenue in the CCS market, particularly for its ability to simplify the carbon separation process. In this approach, conventional air is replaced by pure oxygen for fuel combustion, resulting in a flue gas primarily composed of carbon dioxide and water vapor.
   
• Technology is being evaluated for several ongoing CCS developments in terms of economic viability and associated engineering risks. The effective demonstration and dissemination of the new oxy-fuel projects at a commercial scale will boost technology adoption in the coming years.
   

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• The Netherlands dominated the carbon capture and storage market in Europe with 62% share in 2024 and generated USD 447.3 million in revenue. The Netherlands carbon capture and storage (CCS) market has experienced significant advancements, positioning the country as one of the leaders in Europe's industrial decarbonization efforts.
   
• For instance, in April 2024, the Netherlands signed cross-border agreements with Norway, Denmark, Belgium, and Sweden to facilitate international CO₂ transport and storage, enhancing regional cooperation in CCS. These developments underscore the Netherlands' commitment to achieving climate neutrality by 2050 through strategic investments and international collaboration in CCS infrastructure.
   
• The UK power generation CCS market will grow at a rate of 31% till 2034, driven by decarbonization mandates, government incentives, and growing collaboration between the private and public sectors. As part of its legally binding 2050 net-zero target, the UK is investing heavily in CCS to reduce industrial emissions and enable clean hydrogen production while also developing large-scale transport and storage infrastructure in key industrial clusters.
   
• In December 2024, the Northern Endurance Partnership (NEP), comprising TotalEnergies, Equinor, and bp, has achieved financial close on the UK's first large-scale carbon capture and storage (CCS) project, marking a significant milestone in the nation's decarbonization efforts. This development underscores the UK's commitment to achieving net-zero emissions by 2050 and revitalizing its industrial regions through sustainable technologies.
   
• Increasing government funding and support through the UK CCS Infrastructure Fund (CCIF) and the Carbon Capture Usage and Storage (CCUS) Cluster Sequencing Process, the government is providing large capital support and long-term business models to various players. These incentives de-risk early-stage investments and attract private capital across industry.
   
• Norway’s power generation CCS industry will grow at a rate of over 44% by 2034 and is being propelled by strong government leadership and investments, particularly through various CCS projects. For instance, in October 2024, the Norway government allocated over USD 200 million in the state budget for the Longship project, which represents the world’s first full-scale CCS value.
   
• Similarly, in June 2025, Norway and Switzerland signed an agreement to strengthen international collaboration on carbon capture and storage (CCS) and carbon dioxide removal (CDR) under Article 6 of the Paris Agreement. This partnership reflects both countries’ commitment to achieving net-zero goals and represents a key step toward establishing a sustainable commercial market for CCS and CDR in the region.
   

Europe Power Generation Carbon Capture and Storage Market Share

• The top 5 companies in the Europe power generation carbon capture and storage industry are Equinor, Aker Solutions, Technip Energies, Linde Plc, and Exxon Mobil Corporation, collectively contributed around 30% of the market in 2024. Equinor’s expertise in offshore infrastructure and subsurface storage gives it a competitive edge in CO₂ transport and sequestration.
   
• Equinor’s partnership with Shell and TotalEnergies is further positioning it as a cornerstone of Europe’s cross-border CCS ecosystem. For instance, in April 2025, Equinor, alongside partners Shell and TotalEnergies, greenlit the second phase of the Northern Lights carbon capture and storage project with a Final Investment Decision (FID). This next stage follows a landmark agreement with Stockholm Exergi to handle the transport and storage of 900,000 tonnes of biogenic CO₂ annually over 15 years.
   

Europe Power Generation Carbon Capture and Storage Market Companies

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

• Air Liquide
• Aker Solutions
• Chevron Corporation
• CarbonFree
• Dakota Gasification Company
• Equinor
• Exxon Mobil Corporation
• Fluor Corporation
• General Electric
• Global Thermostat
• HALLIBURTON
• Linde plc
• Mitsubishi Heavy Industries Ltd.
• NRG Energy, Inc.
• Shell plc
• Siemens
• SLB
• Sulzer Ltd.
• Harbour Energy
• Technip Energies N.V.
   
• Aker Solutions, headquartered in Norway is an engineering and technology provider in the CCS space, particularly known for its modular capture systems like Just Catch. The company has secured multiple EPCIC contracts, including the Hafslund Celsio project in Oslo, reinforcing its reputation for scalable and cost-effective capture solutions. The company headquartered in Norway, reported an annual revenue of USD 5 billion in the year 2024.
   
• Equinor, headquartered in Norway reported an annual revenue of USD 103 billion in the year 2024. The company holds a leading position in the European CCS market, primarily due to its role in developing and operating the Northern Lights project, part of Norway’s Longship initiative.
   
• Technip Energies headquartered in France reported an annual revenue of USD 8 billion in 2024 is rapidly emerging as a key player in the European CCS market, especially in the front-end engineering design (FEED) segment. The company has been awarded several high-profile CCS FEED contracts, including Connah’s Quay Low Carbon Power project in the UK.
   

Europe Power Generation Carbon Capture and Storage Industry News

• In April 2025, Aker Solutions was awarded an Engineering, Procurement, and Construction (EPC) contract by Equinor for the expansion of onshore facilities as part of the Northern Lights Phase 2 carbon capture, transport, and storage project in Norway. The contract marked a key step in advancing the second phase of the initiative, aimed at enhancing CO₂ handling capacity and supporting the country’s broader climate goals.
   
• In March 2025, Equinor joined forces with Polish multi-utility company ORLEN through a newly signed collaboration agreement to explore carbon capture and storage (CCS) opportunities in Poland. The partnership aims to assess the potential for deploying CCS technology to help reduce industrial emissions and support Poland’s transition to a lower-carbon economy. This move underscores Equinor’s commitment to expanding its low-carbon solutions across Europe.
   
• In March 2025, TotalEnergies, in collaboration with Equinor and Shell, verified the Final Investment Decision (FID) for the second phase of the carbon capture and storage (CCS) project Northern Lights in Norway. This will increase the facility’s ability to transport and store CO₂ from 1.5 million to over 5 million tonnes per year by 2028. This expansion will add new storage vessels, injection wells, CO₂ carriers, pumps, jetty, and other enhancements with an investment of USD 700 million.
   
• In January 2025, Technip Energies was selected by Uniper to carry out the Front-End Engineering Design (FEED) for a proposed Combined Cycle Gas Turbine (CCGT) power station integrated with Carbon Capture and Storage (CCS) technology. The project, known as the Connah’s Quay Low Carbon Power initiative, is planned for development at Uniper’s Connah’s Quay site.
   
• In December 2024, GE Vernova, in partnership with Technip Energies and Balfour Beatty, received a critical contract regarding the Net Zero Teesside Power in the UK. This project is set out to build the world’s first gas power station with integrated carbon capture and storage (CCS) capabilities. The facility is planned to capture 2 million tons of CO₂ per annum which will subsequently be transported and indefinitely stored by the Northern Endurance Partnership.
   

This Europe power generation carbon capture and storage market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Technology

• Pre combustion
• Post combustion
• Oxy-fuel combustion

The above information has been provided for the following countries:

• UK
• Netherlands
• Norway