Power Generation Carbon Capture and Storage Market Size - By Technology, Analysis, Share & Growth Forecast, 2025 - 2034

Power Generation Carbon Capture and Storage Market Size

The global power generation carbon capture & storage market was valued at USD 3.2 billion in 2024 and is estimated to reach the value of USD 11.7 billion by 2034, growing at a CAGR of 10.3% from 2025 to 2034. Strict emission rules require power plants to use carbon capture and storage (CCS) technologies to reduce greenhouse gas emissions. Governments impose fines for high carbon output, pushing the use of CCS to meet climate goals.
 

Global commitments to net-zero emissions are increasing the need for CCS technologies as a key solution to lower carbon emissions. Power companies are aligning with international climate agreements, focusing on CCS to reduce fossil fuel emissions. For instance, Norway’s government-backed Longship CCS project, part of the Paris Agreement, plans to capture and store up to 1.5 million tons of CO? annually from industrial emissions, with the potential to increase to 5 million tons by 2025, demonstrating large-scale CCS efforts to meet Norway's 2050 net-zero goals.
 

Improved capture efficiency and lower costs are encouraging CCS use across different industries, making it more practical for large-scale carbon emission reduction. Advances in storage solutions are improving the feasibility of CCS projects for power producers. In 2023, the Department of Energy announced an extra USD 45 million for its Carbon Capture Projects Program to enhance capture technologies for power generation and industries that are hard to decarbonize. These funds support research and development to boost capture efficiency, reduce energy use, and lower overall costs.
 

Using CCS helps power companies align with global climate goals and shows their commitment to sustainability. CCS allows utilities to cut their carbon emissions while continuing energy production, which is appealing to environmentally conscious investors and consumers. Under the EU's Corporate Sustainability Reporting Directive (CSRD), large utilities must report their greenhouse gas reduction targets, CCS investment plans, and spending timelines, complying with ESRS E1 reports as required by EU regulations, ensuring comprehensive CCS reporting.
 

In April 2025, President Trump introduced tariffs affecting the electric vehicle contractor market. Equipment for carbon capture and storage (CCS) also has increased tariffs for some suppliers. This leads to higher costs for key components, which may force project developers to either absorb these costs or pass them on to utilities, slowing down CCS projects. However, these higher import duties might encourage U.S. manufacturers to boost production of necessary equipment, strengthening the domestic supply chain.
 

Power Generation Carbon Capture and Storage Market Trends

Governments are enforcing stricter emission rules to encourage the use of carbon capture and storage (CCS) technology, motivating energy companies to invest in it. Power plants use CCS to meet climate goals while still using fossil fuels during the shift to cleaner energy. For instance, in 2024, Canada introduced a tax credit for CCS investments, offering up to 30% federal tax credits. Additionally, Manitoba enacted a law to regulate and promote CCS use by utilities.
 

Advancements in capture methods are lowering CCS costs, making it a more affordable option for utilities looking to reduce their carbon emissions. This combination of policy support and technological progress is increasing CCS use in the energy sector. For instance, in 2024, the U.S. Department of Energy announced USD 54.4 million in funding to improve carbon management strategies, enhancing capture efficiencies and reducing costs for power generators.
 

CCS is combined with renewable energy to provide stable and reliable power generation while still reducing overall carbon emissions. This mix allows the continued use of fossil fuels while cutting overall carbon emissions during the transition to cleaner energy. In 2023, the UK revised its BECCS Business Model, introducing dual contracts for electricity and carbon. This lets BECCS plants deliver firm, negative-emission power along with intermittent renewables by 2027.
 

Energy companies are working together to expand CCS infrastructure and share costs, making it more affordable for everyone involved. By partnering, these companies can use their resources and expertise to speed up the development and use of CCS technology in the energy sector. For instance, in 2024, the UK government awarded contracts for Net Zero Teesside Power. BP and Equinor operate a 742 MW gas power plant with CCS, capturing and storing up to 2 million tons of CO? annually, supported by USD 28 billion in funding.
 

Power Generation Carbon Capture and Storage Market Analysis

• The power generation carbon capture and storage market was valued at USD 2.1 billion, USD 2.2 billion, and USD 3.2 billion in 2022, 2023 and 2024, respectively. Public funding boosts carbon capture and storage (CCS) projects by providing grants and tax breaks, encouraging private companies to invest in this technology. For instance, in 2023, the European Commission allocated USD 148.9 million to the Northern Lights CCS project to expand pipelines and storage systems for CO? in the Norwegian North Sea.
   
• Companies work with labs and startups to improve CCS systems and create advanced technologies that reduce emissions. This collaboration speeds up technological progress, cuts costs, and improves efficiency for power plants. For instance, in 2023, the U.S. Department of Energy launched an USD 820 million initiative to support up to ten CCS projects, partnering power companies with national labs and startups to develop new capture technologies.
   
• Strict climate commitments require energy companies to use CCS technologies widely, encouraging cooperation and knowledge sharing in the industry. This technology allows fossil-fuel plants to meet global net-zero targets while maintaining energy production. For instance, in 2024, the U.S. EPA set emission guidelines requiring 90% CO? capture for existing coal-fired plants, mandating CCS use by January 1, 2032, for plants operating beyond 2039 to meet emissions targets.
   
• New CO? pipelines and storage facilities are being built worldwide to meet the demand for carbon capture and storage. Expanded networks help transport and store captured emissions, making large-scale CCS possible for power systems. For instance, in 2024, the Dutch Emissions Authority issued the first EU permit for underground CO? storage to the Porthos project, allowing a pipeline network to inject up to 2.5 million tons of CO? per year into depleted North Sea gas fields starting in 2026.
   

• Based on technology, the power generation carbon capture & storage market is segmented pre combustion, post combustion, and oxy-fuel combustion. The post combustion segment has a market revenue share of over 69.3% in 2024.
   
• This technology is important for reducing greenhouse gas emissions and tackling climate change. For instance, in 2023, the Department of Energy gave a study grant to Duke Energy Indiana to explore updating a power plant with technology that removes CO? from exhaust gases and looks into storing it in nearby underground formations.
   
• The pre combustion segment is estimated to grow to over a CAGR of 6% by 2034. This approach captures carbon dioxide before burning fossil fuels by turning them into a hydrogen-rich gas, which can then be used for generating electricity or in other industries. According to a plan by the Department of Energy published in January 2025, certain technologies reached a significant development stage in 2024.
   
• Oxy-fuel ability to update existing power plants makes this method a promising short-term solution for cutting emissions. In mid-2023, the Department of Energy selected projects to study and test new ways to capture carbon using oxygen-based methods for coal power and industrial use. These efforts aim to reduce risks associated with these carbon capture approaches.
   

• The U.S. power generation carbon capture and storage market in 2022, 2023 and 2024 was valued at USD 1 billion, USD 1 billion, and USD 1.4 billion, respectively. Government incentives and dedicated storage facilities are driving the growth of Carbon Capture and Storage (CCS) technology. Utilities are updating coal and gas plants to focus on reducing emissions. In the U.S., the Inflation Reduction Act's improved tax credit offers up to USD 85 per ton for capturing and storing CO?, effective in 2023 for utilities.
   
• The Europe market is expected to grow over CAGR of 21.2% by 2034. Partnerships between industry leaders and government bodies are driving innovation and expanding CCS infrastructure across Europe. In 2023, the European Commission launched a funding call, allocating USD 855 million in grants for five cross-border CO? network projects, including Northern Lights and Porthos, to improve transport and storage infrastructure for achieving net-zero power systems.
   
• The Asia Pacific market is estimated to be valued at USD 1 billion by 2034. Governments are using incentives alongside rising energy demands to promote carbon capture technology. Collaborations between research institutions and industry players have led to successful pilot projects. For instance, South Korea's new CCS law, aims to cut 4.8 million tons of CO? yearly by 2030 through financial support and simplified permits. China's current five-year plan requires large CCS projects at coal power plants to reduce emissions.
   

Power Generation Carbon Capture and Storage Market Share

The top 4 companies in the power generation carbon capture and storage industry include Linde plc, Exxon Mobil Corporation, Shell CANSOLV, and Mitsubishi Heavy Industries Ltd., collectively commanding about 30% of the market share. Their prominence is attributed to their innovative carbon capture technologies, extensive global project portfolios, and strategic alliances with energy producers and governments. These companies excel in developing and implementing post-combustion, pre-combustion, and oxy-fuel combustion CCS solutions.
 

Linde plc, one of the world’s largest industrial gas companies, leads in carbon capture technology with its HISORP CC adsorption-based solution, achieving CO? capture rates exceeding 99% through renewable energy-powered processes. In 2024, Linde entered into an agreement with NEXTCHEM to supply this technology for ADNOC’s Hail and Ghasha project in the UAE, one of the largest offshore sour gas developments globally, aiming for net-zero emissions.
 

Power Generation Carbon Capture and Storage Market Companies

• Exxon Mobil Corporation, based in the U.S., reported a revenue of USD 344.6 billion in 2024. The company has heavily invested in capturing and storing carbon emissions, using its skills in CO2 pipeline systems and underground storage. In 2023, ExxonMobil bought Denbury Inc. for USD 4.9 billion, gaining control of the largest CO2 pipeline network in the U.S., which boosts its ability to move and store over 14 million metric tons of CO2 each year.
   
• Shell CANSOLV, located in the Netherlands, achieved a revenue of USD 302.1 billion in 2024. Specializing in capturing CO2 after combustion, Shell CANSOLV offers its ADIP ULTRA solvent technology, which captures up to 25% more CO2 than standard methods. In 2024, Shell expanded its Quest carbon capture project in Alberta, Canada, successfully capturing 1.2 million tons of CO2 each year from power generation and storing it underground.
   
• Mitsubishi Heavy Industries, Ltd., based in Japan, recorded a revenue of USD 30.2 billion in 2024. As a prominent leader in engineering, Mitsubishi Heavy Industries licenses its KM CDR Process for capturing CO2 after combustion, used in 14 commercial plants worldwide. In 2024, MHI partnered with Evero Energy Group to launch its In BECCS project in the UK, combining bioenergy with carbon capture to achieve negative emissions in power generation.
   

Key market players operating across the power generation carbon capture and storage market industry are:

• Aker Solutions
• Dakota Gasification Company
• Equinor ASA
• Exxon Mobil Corporation
• Fluor Corporation
• General Electric
• Global Thermostat
• HALLIBURTON
• Linde plc
• Mitsubishi Heavy Industries Ltd.
• NRG Energy, Inc.
• Shell CANSOLV
• Siemens
• SLB
• Sulzer Ltd
   

Power Generation Carbon Capture and Storage Industry News

• In February 2024, Fluor Corporation received a contract to design the integration of carbon capture technology into a coal-fired power plant for a U.S. utility company. The project uses Fluor’s technology to capture 95% of CO2 emissions, with plans for permanent underground storage. This contract highlights Fluor’s skill in the carbon capture market, helping North America move towards cleaner energy systems.
   
• In April 2024, Aker Solutions secured a contract with Equinor ASA to provide engineering and supply services for Norway's Northern Lights carbon capture and storage (CCS) project. This project aims to capture carbon dioxide (CO2) from power plants and industries, then transport and store it underground. Aker Solutions' Just Catch modular technology will help capture CO2 efficiently, supporting the project's goal of storing 1.5 million tons of CO2 each year.
   
• In October 2023, SLB announced a partnership with TDA Research to combine direct air capture (DAC) technology with carbon storage systems for power plants. The project aims to use TDA’s DAC technology with SLB’s expertise in underground storage, targeting a pilot project in Texas to capture 100,000 tons of CO2 each year. This partnership positions SLB as a leader in carbon management solutions for power generation.
   
• In November 2023, General Electric (GE) announced a partnership with Svante Technologies to create and use advanced carbon capture solutions for gas-fired power plants. This partnership combines GE’s expertise in gas turbines with Svante’s CO2 capture technology, aiming to cut emissions by up to 90%. Pilot projects are currently being evaluated in the U.S. to see if the technology can be used on a larger scale.
   

This power generation carbon capture and storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MTPA’ & ‘USD Billion’ from 2021 to 2034, for the following segments:

Market, By Technology

• Pre combustion
• Post combustion
• Oxy-fuel combustion

The above information has been provided for the following regions across the countries.

• North America
  • U.S.
  • Canada 
• Europe
  • Norway
  • Netherlands
  • UK
• Asia Pacific
  • China
  • Australia
  • South Korea
• Rest of World