Power Generation Carbon Capture and Storage Market Report 2026

The power generation carbon capture and storage market size has grown rapidly in recent years. It will grow from $5.61 billion in 2025 to $6.46 billion in 2026 at a compound annual growth rate (CAGR) of 15.3%. The growth in the historic period can be attributed to increasing government climate mandates for emission reduction, growing reliance on fossil fuel power plants requiring decarbonization, rising investments in early carbon capture demonstration projects, expansion of regulatory frameworks supporting carbon storage, increasing adoption of post combustion capture technologies.

The power generation carbon capture and storage market size is expected to see rapid growth in the next few years. It will grow to $11.3 billion in 2030 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period can be attributed to growing incentives and financial schemes for carbon capture adoption, rising need to decarbonize existing coal and gas power fleets, expansion of regional carbon transport and storage infrastructure, increasing integration of biomass power with carbon capture, growing demand for negative emission technologies. Major trends in the forecast period include advancements in post combustion capture solvent technologies, innovations in direct air capture systems, developments in oxy-fuel combustion research, research and development in low energy penalty capture processes, advancements in digital monitoring and reservoir analytics.

The growing emphasis on reducing emissions from the power sector is expected to drive the expansion of the power generation carbon capture and storage market going forward. Reducing power sector emissions involves government policies and regulatory measures aimed at lowering carbon dioxide (CO₂) and other greenhouse gas emissions from electricity generation, particularly from fossil fuel-based power plants. This increasing focus is driven by climate change concerns and international commitments that require significant reductions in greenhouse gas emissions. Power generation carbon capture and storage supports these efforts by capturing CO₂ before it is released into the atmosphere, allowing power plants to operate with a substantially lower carbon footprint. For instance, in March 2024, according to the UK Department for Energy Security and Net Zero, a UK-based government entity, greenhouse gas emissions from the UK’s electricity supply fell by 19.6%, or 10.8 MtCO₂e, in 2023 compared with 2022, largely due to power-sector decarbonization initiatives. Therefore, the increasing emphasis on reducing power sector emissions is driving the growth of the power generation carbon capture and storage market.

Major companies operating in the power generation carbon capture and storage market are concentrating on the deployment of advanced offshore solutions, such as CO₂ compression and storage systems, to lower emissions and improve sustainability in energy production. CO₂ compression and storage systems involve technologies that capture, purify, compress, and inject carbon dioxide streams from energy facilities into secure geological formations, helping to mitigate climate impact. For example, in September 2025, China National Offshore Oil Corporation (CNOOC), a China-based energy company, launched its first offshore CCS project at the Enping 15-1 platform, which is capable of capturing and storing more than 100,000 metric tons of CO₂ each year. This project supports nearby energy supply chains and power generation feedstocks while advancing the practical deployment of carbon capture and storage technologies.

In November 2023, Exxon Mobil Corporation, a US-based integrated energy company, acquired Denbury Inc. for approximately $4.9 billion. Through this acquisition, ExxonMobil aimed to strengthen its Low Carbon Solutions business by incorporating Denbury’s extensive carbon capture, utilization, and storage (CCUS) infrastructure, including more than 1,300 miles of CO₂ pipeline network and multiple onshore storage sites, to accelerate the deployment of carbon capture and sequestration solutions across North America. Denbury Inc. is a US-based energy company specializing in carbon capture, utilization, and storage operations and CO₂ enhanced oil recovery infrastructure.

Major companies operating in the power generation carbon capture and storage market are Exxon Mobil Corporation, Shell plc, TotalEnergies SE, Chevron Corporation, General Electric Co., Schlumberger Limited, Linde AG, Mitsubishi Heavy Industries Ltd., Air Liquide, Occidental Petroleum Corporation, Baker Hughes Company, Fluor Corporation, Woodside Energy Group Ltd., Doosan Enerbility Co. Ltd., Saipem S.p.A., Worley Limited, Technip Energies, Chart Industries Inc., Hatch Ltd., Calix Limited, Aker Carbon Capture ASA, Carbon Clean Solutions Ltd., DNV AS.

North America was the largest region in the power generation carbon capture and storage market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the power generation carbon capture and storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the power generation carbon capture and storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are impacting the power generation carbon capture and storage market by increasing costs of imported compressors, absorption materials, membranes, pipelines, monitoring sensors, and specialized engineering equipment. utility operators in north america and europe are most affected due to reliance on globally sourced ccs components, while asia-pacific faces higher capital expenditure for large-scale deployment. these tariffs are increasing project costs and extending development timelines. however, they are also encouraging domestic manufacturing of ccs equipment, regional engineering expertise, and localized supply chains that support long-term deployment of low-carbon power infrastructure.

Power generation carbon capture and storage (CCS) is a process that captures carbon dioxide emissions produced during electricity generation and securely stores them to prevent release into the atmosphere. It involves capturing CO₂ at the source, transporting it, and injecting it into geological formations or other secure storage sites for long-term containment. This technology helps reduce greenhouse gas emissions, mitigate climate change, and support cleaner energy production while maintaining reliable power generation.

The primary technology of power generation carbon capture and storage includes post-combustion capture, pre-combustion capture, oxy-fuel combustion, and direct air capture. Post-combustion capture refers to processes that remove carbon dioxide from flue gases after the combustion of fossil fuels, forming a critical step in reducing greenhouse gas emissions from power plants. The capture methodologies include absorption, adsorption, membrane separation, and cryogenic distillation. The storage methods include geological storage, ocean storage, mineral carbonation, and utilization in products. There are project stages including capture technology and engineering, transportation via pipeline and shipping, storage site characterization and operation, and monitoring, verification, and reporting. The key end users include utility sector companies, industrial sector players, and government and regulatory bodies.

The power generation carbon capture and storage market consists of revenues earned by entities by providing services such as carbon capture consulting, CO2 transportation services, storage site assessment, monitoring and verification, installation and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The power generation carbon capture and storage market also includes sales of carbon capture units, compressors, pipelines, storage tanks, monitoring sensors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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