Bioenergy With CCS Market Research, 2033
The global bioenergy with CCS market size was valued at $212.4 million in 2023, and is projected to reach $676.6 million by 2033, growing at a CAGR of 12.3% from 2024 to 2033.
Introduction
Bioenergy with Carbon Capture and Storage (BECCS) is a process that combines bioenergy production from organic materials with carbon capture and storage (CCS) to reduce atmospheric CO2 levels. Biomass, such as crop residues or wood, absorbs CO2 during growth. When burned for energy, the emitted CO2 is captured and stored underground in geological formations, preventing it from entering the atmosphere. BECCS is considered a carbon-negative technology, meaning it removes more CO2 than it emits, making it crucial for achieving net-zero targets. It is used in power generation, biofuels, and industrial applications, supporting global decarbonization efforts and climate change mitigation.
One of the primary applications of BECCS is in power plants where biomass is burned or gasified to produce electricity. Conventional biomass power plants release CO2 during combustion, but with the incorporation of carbon capture and storage, these emissions are captured and transported to underground storage sites. This results in a net reduction in CO2 levels, making BECCS a viable alternative to fossil-fuel-based power generation. Countries with abundant biomass resources, such as Sweden, the United States, and Brazil, are actively exploring BECCS for sustainable energy production.
Key Takeaways
- The bioenergy with CCS market forecast study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
- The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global bioenergy with CCS market share and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
- Over 3,700 product literature, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
- The key players in the bioenergy with CCS market overview are Chevron Corporation, Drax Group, Ørsted A/S, Saudi Arabian Oil Co., Sekab, Clean Energy Systems, Climeworks, LanzaTech, Aker Solutions, and Babcock & Wilcox Enterprises, Inc.. They have adopted strategies such as acquisition, product launch, merger, and expansion to gain an edge in the market.
Market Dynamics
Increase in focus on net-zero and climate goals is a significant factor driving the growth of the Bioenergy with Carbon Capture and Storage (BECCS) market. BECCS is recognized as a critical technology for achieving carbon negative emissions, essential for meeting global net-zero targets. The International Energy Agency (IEA) emphasizes that BECCS is the only carbon dioxide removal (CDR) technique capable of providing energy, making it indispensable in net-zero strategies. In alignment with these, the UK government has set ambitious plans to establish a competitive carbon capture, usage, and storage (CCUS) market by 2035, supported by a £20 billion investment, to facilitate the transition to net-zero emissions. Such initiatives underscore the pivotal role of BECCS in global decarbonization efforts. All these factors drive the growth of bioenergy with CCS market.
However, high capital and operational costs significantly restrain the growth of the Bioenergy with Carbon Capture and Storage (BECCS) market. Establishing BECCS facilities requires substantial investment in biomass supply chains, carbon capture technology, transportation, and storage infrastructure. The high costs of capturing, compressing, and storing CO2 make BECCS economically challenging compared to other renewable energy options. In addition, ongoing operational expenses, including maintenance, energy consumption, and compliance with regulations, further increase the financial burden. Without strong government incentives, subsidies, or carbon pricing mechanisms, the economic feasibility of BECCS remains a major barrier, limiting its widespread commercial adoption. All these factors hamper the Bioenergy with CCS market growth.
Segments Overview
The Bioenergy with CCS market is segmented into technology, application, and region. On the basis of technology, the market is divided into oxy-combustion, pre-combustion, post-combustion, and others. On the basis of application, the market is bifurcated into biomass conversion and carbon storage. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of technology, the oxy-combustion segment dominated the market in 2023. Oxy-combustion is a key technology in Bioenergy with Carbon Capture and Storage (BECCS) that enhances carbon capture efficiency while optimizing energy production. This process involves burning biomass in an oxygen-rich environment instead of air, which results in a flue gas stream that is primarily composed of CO2 and water vapor. By eliminating nitrogen from the combustion process, oxy-combustion simplifies carbon capture, as the CO2 concentration in the exhaust gas is much higher than in conventional air-based combustion. This makes subsequent CO2 separation and storage more cost-effective and energy-efficient.
On the basis of application, the biomass conversion segment dominated the market in 2023. Biomass conversion plays a critical role in the bioenergy sector, particularly in the context of bioenergy with carbon capture and storage (BECCS). This process involves converting organic materials, such as agricultural residues, wood, or waste, into bioenergy, which can then be used for electricity generation, heat production, or even transportation fuels. The primary advantage of using biomass for energy lies in its renewability and its potential to be carbon-neutral. During biomass conversion, carbon dioxide (CO2) is released; however, if the CO2 is captured and stored through CCS technologies, it can prevent the gas from entering the atmosphere, thereby reducing the overall carbon footprint of the bioenergy production process. In February 2025, the UK government halved subsidies for the Drax power station, the nation's largest, and mandated the use of 100% sustainable wood. This decision aims to enhance energy security and protect consumers, saving an estimated $177.6 million (£170 million) annually. Greenpeace criticized this move, labeling it a "dirty compromise.
By region, North America dominated the bioenergy with CCS market in 2023. Bioenergy with Carbon Capture and Storage (BECCS) is a crucial technology in North America’s efforts to reduce carbon emissions and combat climate change. Several countries in the region, primarily the United States and Canada, are exploring and implementing BECCS strategies in various sectors, including agriculture, forestry, and energy production. The U.S. has been a key player in the research and development of BECCS technologies, driven by both governmental policies and private sector investments. The U.S. has vast agricultural and forestry sectors that can provide the biomass necessary for BECCS applications. Additionally, the U.S. government has been supportive of carbon capture initiatives through programs like the 45Q tax credit, which incentivizes companies to capture and store CO2. Many pilot projects are underway, with a focus on integrating BECCS into existing power plants and industrial processes. Regions like the Midwest, with its large agricultural base, are prime locations for BECCS projects due to the availability of biomass feedstocks. Companies in the U.S. are also collaborating on capturing carbon emissions from bioenergy plants and storing them in geological formations, aiming for scalable solutions to meet climate goals.
Competitive Analysis
The major prominent players operating in the bioenergy with CCS market include Chevron Corporation, Drax Group, Ørsted A/S, Saudi Arabian Oil Co., Sekab, Clean Energy Systems, Climeworks, LanzaTech, Aker Solutions, and Babcock & Wilcox Enterprises, Inc.
- In March 2025, Baker Hughes partnered with Frontier Infrastructure to develop the Sweetwater Carbon Storage Hub in Wyoming. This project integrates advanced well design, CO2 compression, and long-term monitoring technologies, aiming to meet the growing power demand in the U.S. Mountain West region while reducing CO2 emissions.
- In October 2024, Drax committed up to $12.5 billion to construct up to five BECCS power plants in the U.S., generating approximately 750 MW and capturing about 1.5 million tons of CO2 annually. These plants are expected to benefit from over $100 million in annual tax credits under the Inflation Reduction Act.
Bioenergy with CCS Industry News
- In March 2025, Polish refiner Orlen and Norway's Equinor signed a memorandum of understanding to develop CCS projects, including identifying CO2 storage sites in Poland's Baltic Sea region. Orlen aims to capture, transport, and store 4 million metric tons of CO2 annually by 2035.
- In August 2023, The UK government published a Biomass Strategy outlining steps to achieve net-zero emissions, emphasizing BECCS as a key technology. The strategy includes developing business models for BECCS in the power sector and supporting projects like Drax's BECCS pilot facilities in Yorkshire.
- In December 2023, the Indian government launched the National Bioenergy Programme with a budget of $206.63 million (Rs. 1,715 crore), aiming to promote renewable energy from bioenergy sources, including agricultural residues. Initiatives include financial assistance for biogas plants and blending biomass in thermal power plants.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the bioenergy with CCS market analysis from 2023 to 2033 to identify the prevailing bioenergy with ccs market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the bioenergy with CCS market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global bioenergy with CCS market trends, key players, market segments, application areas, and market growth strategies.
Bioenergy With CCS Market Report Highlights
| Aspects | Details |
 Market Size By 2033 | USD 676.6 million |
 Growth Rate | CAGR of 12.3% |
 Forecast period | 2023 - 2033 |
 Report Pages | 239 |
 By Technology |
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 By Application |
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 By Region |
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 Key Market Players | LanzaTech, C?lean Energy Systems, Chevron Corporation, Orsted A/S, Babcock & Wilcox Enterprises, Inc., SLB, Drax Group PLC, Aker Solutions, Climeworks, Saudi Arabian Oil Co. (Saudi Aramco) |
Analyst Review
According to the opinions of various CXOs of leading companies, the bioenergy with CCS market is poised for significant growth during the forecast period. The market has experienced steady expansion, driven by an increase in demand for BECCS across industries such as power generation, industrial manufacturing, and carbon sequestration projects. Rise in emphasis on carbon-negative technologies, net-zero commitments, and government incentives for carbon capture fuel this demand. Advancements in biomass processing, gasification, and CCS technologies are transforming the market, enhancing efficiency and optimizing carbon removal processes.
Moreover, innovations in biomass feedstock selection, CO? transport infrastructure, and carbon storage solutions reshape the market. These developments cater to the surge in need for scalable, cost-effective, and sustainable BECCS solutions, enabling industries to reduce emissions while maintaining energy output. In addition, the demand for low-carbon biofuels and sustainable energy solutions offers new opportunities for BECCS adoption in multiple sectors. The integration of AI, digital monitoring, and advanced carbon utilization techniques further drives efficiency in capturing, storing, and repurposing CO?.
As industries prioritize decarbonization, regulatory compliance, and climate resilience, the bioenergy with CCS market is expected to experience accelerated growth. The continued adoption of advanced carbon capture technologies and supportive policies is projected to foster innovation, positioning the market for long-term success and expansion across various industries.
The global bioenergy with CCS market was valued at $212.4 million in 2023, and is projected to reach $676.6 million by 2033, growing at a CAGR of 12.3% from 2024 to 2033.
The key players operating in the bioenergy with CCS market include Chevron Corporation, Drax Group, Ørsted A/S, Saudi Arabian Oil Co., Sekab, Clean Energy Systems, Climeworks, LanzaTech, Aker Solutions, and Babcock & Wilcox Enterprises, Inc.
North America is the largest regional market for bioenergy with CCS.
Biomass Conversion is the leading application of bioenergy with CCS market.
Increasing Adoption of CCS Infrastructure are the upcoming trends of bioenergy with CCS market.
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