Bioenergy With CCS Market Expected to Reach $676.6 Million by 2033

According to a new report published by Allied Market Research, titled, “Bioenergy With CCS Market," The bioenergy with CCS market size was valued at $212.35 million in 2023, and is estimated 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 carbon-negative technology that combines biomass energy production with CO₂ capture and storage. In this process, organic materials such as agricultural waste, wood, or dedicated energy crops are burned or processed to generate electricity or biofuels, while the resulting CO₂ emissions are captured and stored underground, preventing them from entering the atmosphere. BECCS plays a crucial role in climate change mitigation by removing carbon from the air, supporting net-zero goals, and offering a sustainable energy solution for industries seeking to reduce their environmental footprint.

Bioenergy with CCS market analysis involves the production of bioenergy (energy derived from biological sources, such as biomass) combined with the capture and long-term storage of carbon dioxide (CO2) emissions. The goal of BECCS is to reduce atmospheric CO2 concentrations, which is a significant driver of climate change. The fundamental principle of BECCS is that when biomass is used for energy production, the carbon released during combustion or processing is captured and stored, preventing it from entering the atmosphere. The idea is to create a carbon-negative energy cycle, where the carbon sequestered by plants during their growth phase is effectively captured and stored, creating a net removal of CO2 from the atmosphere.

Market Dynamics

Increasing adoption of CCS infrastructure is expected to offer lucrative opportunities in the bioenergy with CCS market growth. Increase in adoption of Carbon Capture and Storage (CCS) infrastructure presents a significant opportunity for the Bioenergy with Carbon Capture and Storage (BECCS) market. CCS infrastructure is essential for BECCS, as it enables the effective capture, transportation, and storage of CO₂ emissions resulting from bioenergy processes. Recent data from the International Energy Agency (IEA) indicates a substantial growth in CCS projects, with announced CO₂ storage capacity for 2030 increasing by 70% in the past year, reaching approximately 615 million tons of CO₂ annually. This expansion in CCS infrastructure is crucial for scaling BECCS operations, as it provides the necessary pathways for sequestering CO₂ emissions from bioenergy production. Government policies further bolster this opportunity. For instance, in 2025, the U.S. Environmental Protection Agency (EPA) granted states, such as West Virginia, the authority to oversee carbon capture projects, expediting the approval process for carbon sequestration initiatives. This regulatory support, combined with substantial subsidies such as the $85 per metric ton tax credit from the 2022 Inflation Reduction Act, incentivizes the development of CCS infrastructure. All these factors create bioenergy with CCS market opportunities in future.

However, competition from other renewable energy sources is expected to hamper the growth of bioenergy with CCS market. The growth of the bioenergy with CCS industry is restrained by intense competition from other renewable energy sources such as solar, wind, hydro, and geothermal energy. These alternatives are often seen as more cost-effective, technologically mature, and scalable solutions for reducing carbon emissions. Unlike BECCS, which requires significant capital investment in both biomass supply chains and CCS infrastructure, technologies such as solar and wind have witnessed rapid cost declines, making them more attractive for investors and governments. Moreover, Bioenergy with CCS market overview faces efficiency challenges, as energy losses occur in both biomass conversion and carbon capture processes, making it less efficient than direct renewable energy generation.

Increasing Adoption of CCS Infrastructure is expected to provide bioenergy with CCS market trend in future timeline. Government policies further bolster this opportunity. For instance, in 2025, the U.S. Environmental Protection Agency (EPA) granted states, such as West Virginia, the authority to oversee carbon capture projects, expediting the approval process for carbon sequestration initiatives. This regulatory support, combined with substantial subsidies such as the $85 per metric ton tax credit from the 2022 Inflation Reduction Act, incentivizes the development of CCS infrastructure. As CCS infrastructure continues to expand, BECCS projects can be more readily implemented, facilitating the removal of CO₂ from the atmosphere and contributing to climate change mitigation efforts. The synergy between growing CCS capabilities and BECCS initiatives underscores a promising avenue for achieving negative emissions and advancing global sustainability goals.

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, post-combustion was the fastest growing segment in the market representing the CAGR of 12.6% during the forecast period. The post-combustion process typically involves the use of various technologies, such as solvent-based absorption or membrane filtration systems, to separate CO2 from other gases in the flue stream. Once captured, the CO2 is compressed and transported to a storage site, often deep underground, where it can be stored securely for long periods. This combination of bioenergy production and CCS is a promising solution to mitigate the environmental impact of biomass energy systems and achieve negative carbon emissions, which is essential for addressing climate change.

On the basis of application, the biomass conversion was the fastest growing segment in the market representing the CAGR of 12.4% during the forecast period. The integration of CCS technology with biomass conversion processes aims to mitigate these emissions by capturing the CO2 produced and storing it underground, preventing its release into the atmosphere. This combination is often referred to as Bioenergy with Carbon Capture and Storage (BECCS). BECCS is seen as a potential solution for achieving negative emissions, where the amount of CO2 captured exceeds the amount released, thus reducing the overall concentration of greenhouse gases in the atmosphere.

Regional Analysis

Region wise, Asia-Pacific was the fastest growing region representing the CAGR of 12.9% in the bioenergy with CCS market forecast. In the Asia-Pacific region, several countries are exploring and developing Bioenergy with Carbon Capture and Storage (BECCS) technologies to address energy demands while mitigating carbon emissions. China has been investing heavily in carbon capture technologies, including BECCS, as part of its commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. With large-scale bioenergy production from biomass and agricultural residues, China has focused on integrating BECCS to reduce emissions from its power and industrial sectors. The government is also working on enhancing the technological capabilities of carbon capture and storage, including potential BECCS projects at coal-fired power plants.

Competitive Analysis

The key players analyzed in the bioenergy with CCS market share 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. In December 2024, Environmental groups raised concerns about the UK's reliance on BECCS, particularly regarding emissions from burning U.S.-imported biomass. The debate centers on the carbon accounting of BECCS and its long-term climate impact.

Key Market Insights

• On the basis of technology, oxy-combustion segment dominated the bioenergy with CCS market accounting for more than one third of the market share in 2023.
• On the basis of application, biomass conversion was the most lucrative segment representing the CAGR of 14.4% during the forecast period.
• Region wise, North America dominated the market accounting for one third of the market share in 2023.