Power Generation Carbon Capture and Storage Market Forecasts to 2030 - Global Analysis By Technology, Application and By Geography

According to Stratistics MRC, the Global Power Generation Carbon Capture and Storage Market is accounted for $2.55 billion in 2024 and is expected to reach $8.11 billion by 2030 growing at a CAGR of 21.3% during the forecast period. Power Generation Carbon Capture and Storage (CCS) is a technology aimed at reducing greenhouse gas emissions from power plants, particularly those that burn fossil fuels. The process involves three main steps, capturing carbon dioxide (CO2) emissions produced during power generation, transporting the captured CO2 to a storage site, and securely storing it underground to prevent its release into the atmosphere. CCS can significantly mitigate the environmental impact of coal and natural gas power plants, helping to transition towards a low-carbon energy future. By enabling the continued use of fossil fuels while minimizing their carbon footprint, CCS plays a critical role in efforts to combat climate change.

Market Dynamics:

Driver:

Rising public concern about climate change

Rising public concern about climate change is substantially driving advancements in Power Generation Carbon Capture and Storage (CCS) technologies. As awareness of the urgent need to reduce greenhouse gas emissions grows, governments and industries are increasingly investing in CCS as a viable solution for mitigating the environmental impact of fossil fuel energy production. CCS technologies capture carbon dioxide emissions produced from power plants before they can enter the atmosphere, enabling a transition toward cleaner energy sources while still utilizing existing infrastructure. This shift not only aligns with global climate goals but also addresses the economic and energy security concerns associated with phasing out fossil fuels entirely.

Restraint:

Market volatility

Market volatility significantly impacts the Power Generation Carbon Capture and Storage (CCS) sector by creating uncertainty in investment and operational decisions. Fluctuating energy prices, driven by geopolitical tensions, supply chain disruptions, and shifts in demand, can make it challenging for companies to justify the high upfront costs associated with CCS technologies. Investors often hesitate to commit capital to projects with uncertain returns, especially when traditional energy sources remain cheaper in volatile markets. Regulatory changes and varying government support for green initiatives can further complicate the landscape, leading to inconsistent funding and project delays. This instability not only hampers the growth of CCS infrastructure but also discourages innovation in capturing and storing carbon emissions effectively.

Opportunity:

Infrastructure development

As the demand for cleaner energy sources grows, investments in infrastructure such as pipelines, storage facilities, and advanced capture systems are essential. These developments enable the efficient capture of carbon dioxide emissions from power plants, preventing them from entering the atmosphere. Enhanced transportation networks allow for the effective movement of captured CO2 to geological storage sites, where it can be securely sequestered underground. Moreover, improved research facilities and technological advancements foster innovation in CCS methods, increasing their efficiency and reducing costs. By creating a robust infrastructure framework, we can significantly mitigate greenhouse gas emissions while continuing to rely on fossil fuel-based power generation during the transition to more sustainable energy sources.

Threat:

Operational complexity

Operational complexity significantly hinders the efficiency and implementation of Carbon Capture and Storage (CCS) in power generation. CCS technologies involve intricate processes that capture carbon dioxide emissions from power plants, requiring advanced systems and extensive infrastructure. The integration of these technologies into existing power generation frameworks can complicate operations, as they demand careful management of various components, including chemical processes, energy consumption, and transportation of captured CO2. The need for skilled personnel to oversee and maintain these systems adds to operational burdens. High capital costs and long payback periods further deter investment in CCS, making it challenging to achieve widespread adoption.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted the power generation sector, particularly in the context of carbon capture and storage (CCS) technologies. During the pandemic, many countries faced economic slowdowns, leading to reduced investments in energy infrastructure and environmental projects, including CCS. The focus shifted to immediate public health concerns, diverting attention and resources away from long-term climate initiatives. Disruptions in supply chains hindered the development and deployment of CCS technologies, delaying critical projects.

The Post Combustion segment is expected to be the largest during the forecast period

Post Combustion segment is expected to dominate the largest share of the market over the estimated period. In this process, carbon dioxide (CO2) is captured from the flue gases produced during electricity generation, typically using amine-based solvents or other advanced materials. This technology allows existing power plants to reduce their carbon footprint without requiring a complete overhaul of infrastructure. Once captured, the CO2 can be compressed and transported for permanent storage underground, or it can be utilized in various industrial processes, thus preventing it from entering the atmosphere. As global energy demands rise and climate goals become more stringent, the integration of post-combustion CCS technologies is vital for transitioning to cleaner energy systems.

The Biomass Power Generation segment is expected to have the highest CAGR during the forecast period

Biomass Power Generation segment is estimated to grow at a rapid pace during the forecast period. By utilizing organic materials such as agricultural residues, wood pellets, and other biological matter, biomass power plants can produce energy while simultaneously sequestering carbon dioxide. During combustion, the carbon emitted can be captured using advanced CCS techniques, which involve trapping CO2 before it enters the atmosphere and storing it underground or utilizing it in various applications. This process not only mitigates greenhouse gas emissions but also contributes to a circular carbon economy, where carbon is recycled rather than released. Additionally, biomass is considered renewable, as the organic materials can be replenished through sustainable practices.

Region with largest share:

North America region is poised to hold the largest share of the market throughout the extrapolated period. As the urgency to mitigate climate change intensifies, stakeholders-including governments, private companies, and research institutions-are joining forces to develop innovative solutions that enhance CCS efficiency and reduce costs. These partnerships foster the sharing of knowledge, resources, and best practices, enabling the rapid deployment of scalable technologies. Initiatives like regional carbon hubs and public-private collaborations facilitate investment and infrastructure development, essential for capturing CO2 emissions from power plants and industrial sources. Moreover, these alliances often align with national and state policies aimed at achieving ambitious carbon reduction targets.

Region with highest CAGR:

Europe region is estimated to witness the highest CAGR during the projected time frame. Government regulations aims to meet ambitious climate goals, such as the European Green Deal, which targets net-zero greenhouse gas emissions by 2050. By providing financial incentives, setting strict emissions limits, and establishing frameworks for carbon pricing, governments are encouraging investment in CCS infrastructure. This creates a robust market for innovative technologies that capture carbon dioxide from power plants and store it safely underground, mitigating environmental impact. Additionally, regulations promote research and development, fostering collaboration between public and private sectors. As a result, Europe is positioning itself as a leader in CCS, supporting not only the decarbonization of the energy sector but also contributing to economic growth through green jobs and sustainable practices.

Key players in the market

Some of the key players in Power Generation Carbon Capture and Storage market include Aker Solutions, Dakota Gasification Company, Drax Group, Equinor ASA, Exxon Mobil Corporation, Fluor Corporation, General Electric, JGC Corporation, Linde plc, Mitsubishi Heavy Industries, Ltd, NRG Energy, Inc, Siemens AG and Sulzer Ltd.

Key Developments:

In July 2023, The European Commission has announced that it will invest over USD 3.6 billion to scale up innovative clean technologies. The incorporation of Carbon Capture and Storage (CCS) in power generation is frequently shaped by government policies and regulations.

In February 2023, the U.S. launched a USD 2.5 billion funding program for large-scale pilot and demonstration projects aimed at decarbonizing power generation and hard-to-abate industries. Financed under the Bipartisan Infrastructure Law, this funding will be distributed through two channels, the Carbon Capture Large-Scale Pilots Program and the Carbon Capture Demonstration Projects Program.

In November 2022, General Electric entered into an agreement with DL E&C Co. Ltd., a South Korean-based EPC company, and its subsidiary, CARBONCO, to build potential carbon capture projects for the new or existing combined-cycle power plants. In addition, the collaborative companies will conduct feasibility and Front-End Engineering Design (FEED) studies. The collaboration will pave the way for customers to adopt CCUS technologies, thereby addressing carbon emissions across Asia.

Technologies Covered:

• Post Combustion
• Pre Combustion
• Oxy-fuel Combustion

Applications Covered:

• Coal Power Generation
• Natural Gas Power Generation
• Biomass Power Generation
• Industrial Power Generation
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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