Europe Power Generation Carbon Capture and Storage Market size to reach USD 5.5 Billion by 2034

Selbyville, DE. - Europe power generation carbon capture and storage market was estimated at USD 716.2 million in 2024 and 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 the latest report published by Global Market Insights Inc.

The European Union’s legally binding climate goals, including the ambition to achieve net-zero greenhouse gas emissions by 2050, are pushing utilities and energy producers to adopt carbon capture and storage technologies in power generation to meet compliance standards.

Key Insights:

Market Size & Growth:

• 2024 Market Size: USD 716.2 million
  
• 2025 Market Size: USD 974.3 million
  
• 2034 Forecast Market Size: USD 5.5 billion
  
• CAGR (2025–2034): 21.2 %
  

Regional Insights:

• Largest Market: Netherlands
  
• Fastest Growing Market: Norway
  
• Emerging Countries: UK, Denmark
  

Key Growth Drivers:

1. Increasing investment in low-carbon infrastructure: Governments and private stakeholders across Europe are channeling significant funding into CCS projects as part of broader energy transition strategies, with dedicated support for pilot plants.
   
2. Need to decarbonize fossil fuel-based power plants: Despite a growing renewable share, many European countries rely on gas and, to a lesser extent, coal for base-load power.
   
3. Technological advancements in capture efficiency: Ongoing R&D in post-combustion, pre-combustion, and oxy-fuel combustion methods is improving cost efficiency, energy consumption, and scalability of CCS solutions
   
4. Stringent EU climate policies and net-zero targets: The European Union’s legally binding climate goals include the ambition to achieve net-zero greenhouse gas emissions by 2050.
   
5. Growing carbon pricing and emissions trading pressures: Rising carbon prices under the EU Emissions Trading System (EU ETS) are making it more expensive for power producers to emit CO?.
   

Key Players:

• Equinor is leading the market with over 10% share in 2024.
  
• Some of the top players in this market include Technip Energies, ExxonMobil Corporation, Aker Solutions, Linde plc, and Equinor, which together held a 30% share in 2024.
  

Key Challenges:

1. High capital and operating costs: CCS technologies require substantial upfront investment for capture units, transport infrastructure, and storage facilities.
   
2. Uncertain regulatory frameworks across countries: While the EU promotes carbon reduction, individual member states differ in permitting, liability rules, and timelines for CCS projects.
   
3. Public opposition and perception issues: CCS projects often face local opposition due to environmental concerns, perceived risks of CO? leakage, and general distrust of large industrial developments.
   
4. Limited commercial storage availability: Although the North Sea offers large-scale storage potential, many parts of Europe lack nearby or accessible geological storage sites.
   
5. Technological complexity and integration challenges: Retrofitting existing power plants with CCS requires customized engineering and integration with current systems.
   
6. Slow project deployment timelines: From feasibility studies to full-scale operation, CCS projects often take years, sometimes over a decade, to materialize.
   

Browse key industry insights spread across 135 pages with 33 market data tables and figures from the report, “Europe Power Generation Carbon Capture and Storage Market Size - By Technology, Analysis, Share & Growth Forecast, 2025 - 2034” in detail, along with the table of contents:

https://www.gminsights.com/industry-analysis/europe-power-generation-carbon-capture-and-storage-market

Rising Adoption in Post-Combustion

The post-combustion segment held a notable share in 2024, driven by the compatibility with existing fossil fuel power plants. This approach allows for CO? to be captured directly from flue gases after combustion, making it a practical solution for retrofitting older infrastructure. It is particularly favored in coal- and gas-fired plants where full replacement with renewables is not yet economically feasible. As technological refinements continue to reduce energy penalties and improve capture rates, the post-combustion segment is expected to grow.

Netherlands to Emerge as a Lucrative Region

Netherlands power generation carbon capture, and storage market held a sizeable share in 2024, driven by strong governmental support, public-private partnerships, and access to offshore storage in the North Sea. Projects such as Porthos and Athos have positioned the country as a hub for CO? transportation and storage, with captured emissions expected to be injected into depleted gas fields. With the Dutch government providing funding and policy incentives to support industrial decarbonization, the power generation carbon capture and storage market in the country's strategic coastal infrastructure and collaborative regulatory environment make it a model for CCS deployment in dense, industrialized regions.

Major players in the Europe power generation carbon capture and storage market are Technip Energies N.V., Exxon Mobil Corporation, Air Liquide, Sulzer Ltd., Global Thermostat, Chevron Corporation, HALLIBURTON, Linde plc, Equinor, Fluor Corporation, CarbonFree, Mitsubishi Heavy Industries Ltd., Shell plc, Harbour Energy, Siemens, General Electric, SLB, Aker Solutions, Dakota Gasification Company, NRG Energy, Inc.

Companies operating in the Europe power generation carbon capture and storage market are focusing on scalable project development, cross-sector collaboration, and advanced R&D investment to secure long-term positioning. Leading firms are partnering with governments and industrial clusters to build integrated carbon capture, transport, and storage value chains. Others are targeting retrofits in high-emission plants and expanding pilot projects into full-scale operations. Investing in low-cost absorbents, digital monitoring platforms, and modular capture systems is a key area of innovation aimed at improving performance and reducing OPEX. Additionally, forming alliances across borders—for shared storage infrastructure or knowledge transfer—is helping companies tap into EU-level funding while accelerating deployment timelines. These strategies collectively support stronger regional market penetration and contribute to Europe’s long-term net-zero ambitions.