Bioenergy With Carbon Capture and Storage Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Bioenergy With Carbon Capture And Storage Market is projected to expand significantly, rising from USD 238.17 Million in 2025 to USD 622.63 Million by 2031 at a CAGR of 17.37%. Bioenergy with Carbon Capture and Storage (BECCS) functions as a negative-emission technology by coupling biomass energy generation with the capture and permanent storage of produced carbon dioxide, effectively extracting historical atmospheric carbon rather than just curbing new emissions. This sector is propelled by increasing global dedication to net-zero goals and the critical need for carbon removal mechanisms to counterbalance emissions from challenging sectors like aviation and heavy industry, while strong policies and financial incentives in key economies offer the investment stability needed for these capital-heavy initiatives.

However, despite its potential, the industry encounters major obstacles regarding commercial implementation and scalability. As noted by the International Energy Agency, the installed global capture capacity from biogenic sources reached only about 2 million tonnes annually in 2024, with a primary concentration in bioethanol applications. A primary barrier limiting rapid market growth involves the high expense of integrating the technology alongside the logistical difficulties of building a sustainable, large-scale biomass supply chain that avoids negatively impacting biodiversity or food security.

Market Drivers

The expansion of tax credit programs and financial incentives for carbon removal is acting as a vital accelerant for the Global Bioenergy With Carbon Capture And Storage Market by alleviating the substantial capital risks involved in deploying facilities. Governments are actively spanning the divide between pilot stages and commercial scalability through funding competitions and direct procurement strategies that validate removal technologies. For example, the U.S. Department of Energy announced in May 2024 that it had chosen 24 semifinalists for its Carbon Dioxide Removal Purchase Pilot Prize, offering a route to $35 million in cash awards to bolster projects such as biomass carbon removal and storage, thereby providing the revenue assurance developers need to attract private funding and progress infrastructure development.

Concurrently, escalating corporate pledges toward ESG objectives and net-zero emissions are fueling significant demand for permanent carbon sequestration, creating a strong voluntary market. Companies seeking to offset residual, hard-to-abate emissions are increasingly prioritizing bioenergy-based capture because of its measurability and durability relative to nature-based options. This intense corporate interest was highlighted in May 2024 when Stockholm Exergi signed a landmark deal to supply Microsoft with 3.33 million tonnes of permanent carbon removals over a decade. The sector's dominance is further confirmed by market data; according to CDR.fyi, Bioenergy with Carbon Capture and Storage represented over 90% of the total durable carbon removal transaction volume in the second quarter of 2024.

Market Challenges

The combination of high technology integration costs and the logistical intricacies of the biomass supply chain presents a significant obstacle to the commercial scalability of the Global Bioenergy With Carbon Capture and Storage Market. Establishing these facilities demands considerable upfront capital to retrofit bioenergy plants with capture units, resulting in a financial risk profile that deters rapid investment. This economic strain is exacerbated by the operational challenge of guaranteeing a consistent, large-scale supply of feedstock that adheres to rigorous sustainability standards, which is essential for verifying negative emissions.

Consequently, the industry faces difficulties in expanding its reach because the biomass supply chain is currently unable to keep up with the required rate of technological deployment. The logistical complications associated with sourcing, transporting, and certifying biomass create bottlenecks that limit the feasibility of projects. According to Bioenergy Europe, global wood pellet production remained largely flat at around 48.3 million tonnes in 2024. This stagnation in feedstock availability underscores how supply chain limitations are directly impeding the market's capacity to scale up and satisfy the growing demand for carbon removal.

Market Trends

The integration of facilities into Industrial CCS Hubs and Clusters is transforming the market landscape by moving away from standalone projects toward shared transport and storage networks. By separating capture operations from sequestration sites, this approach lowers the high capital costs and logistical risks typically linked to single-source ventures. Developers are increasingly connecting bioenergy plants to regional clusters that gather emissions from various industrial sources, achieving economies of scale that render smaller capture units financially feasible. This infrastructure growth is substantial; the Global CCS Institute's '2024 Global Status of CCS Report' from October 2024 notes that the industry has advanced 212 CO2 transport and storage projects into the Front-End Engineering Design (FEED) phase globally, forming the backbone needed for broad deployment.

At the same time, the transition toward waste-derived biomass feedstocks is gathering speed as developers aim to maximize carbon negativity without competing with food production. Market players are actively expanding beyond traditional energy crops to prioritize forestry byproducts, agricultural residues, and municipal waste, ensuring better lifecycle emissions performance and adherence to strict sustainability protocols. This shift helps facilities secure long-term viability amidst tightening land-use regulations. The magnitude of this operational change is exemplified by Orsted's August 2024 update, which confirmed plans to capture 430,000 tonnes of biogenic carbon dioxide annually at its Kalundborg site by exclusively using wood chip residues and straw as fuel.

Key Players Profiled in the Bioenergy With Carbon Capture And Storage Market

• Drax Group
• FS-Fueling Sustainability
• Sekab BioFuels & Chemicals AB
• Chevron Corporation
• Schlumberger New Energy
• Clean Energy Systems

Report Scope

In this report, the Global Bioenergy With Carbon Capture And Storage Market has been segmented into the following categories:

Bioenergy With Carbon Capture And Storage Market, by End Use:

• Ethanol Production
• Pulp & Paper Mills
• Cement Production
• Biogas Production
• Electrical Power Plants
• Heat Power Plants

Bioenergy With Carbon Capture And Storage Market, by Technology:

• Oxy-combustion
• Pre-combustion
• Post-combustion

Bioenergy With Carbon Capture And Storage Market, by Form of Energy:

• Heat
• Electricity
• Biofuels
• Others

Bioenergy With Carbon Capture And Storage Market, by Application:

• Biomass Conversion
• Carbon Storage

Bioenergy With Carbon Capture And Storage Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Bioenergy With Carbon Capture And Storage Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.