Bioenergy With Carbon Capture And Storage Market - Global Industry Size, Share, Trends, Opportunity and Forecast, Segmented By End Use (Ethanol Production, Pulp & Paper Mills, Cement Production, Biogas Production, Electrical Power Plants, Heat Power Plants), By Technology (Oxy-combustion, Pre-combustion, Post-combustion), By Form of Energy (Heat, Electricity, Biofuels, Others), By Application (Biomass Conversion, Carbon Storage), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 238.17 Million
CAGR (2026-2031)	17.37%
Fastest Growing Segment	Electricity
Largest Market	North America
Market Size (2031)	USD 622.63 Million

Market Overview

The Global Bioenergy With Carbon Capture And Storage Market will grow from USD 238.17 Million in 2025 to USD 622.63 Million by 2031 at a 17.37% CAGR. Bioenergy with Carbon Capture and Storage (BECCS) is a negative-emission technology that combines energy production from biomass with the capture and permanent sequestration of the resulting carbon dioxide. This process is distinct from conventional carbon capture as it effectively removes historical carbon from the atmosphere rather than merely preventing new emissions. The market is primarily driven by the intensifying global commitment to net-zero mandates and the urgent necessity for carbon removal solutions to offset emissions from hard-to-abate sectors such as heavy industry and aviation. Furthermore, robust policy frameworks and financial incentives in major economies are providing the essential investment security required to advance these capital-intensive projects.

However, the industry faces significant hurdles regarding commercial scalability and implementation. According to the International Energy Agency, in 2024, the installed global capture capacity from biogenic sources stood at only around 2 million tonnes per year, heavily concentrated within bioethanol applications. One significant challenge impeding rapid market expansion is the high cost of technology integration coupled with the logistical complexity of establishing a sustainable, large-scale biomass supply chain that does not compromise food security or biodiversity.

Key Market Drivers

The Expansion of Financial Incentives and Tax Credit Programs for Carbon Removal is functioning as a critical catalyst for the Global Bioenergy With Carbon Capture And Storage Market by mitigating the high capital risks associated with facility deployment. Governments are actively bridging the gap between pilot phases and commercial scalability through direct procurement mechanisms and funding competitions designed to validate removal technologies. For instance, according to the U.S. Department of Energy, in May 2024, the agency selected 24 semifinalists for its Carbon Dioxide Removal Purchase Pilot Prize, which creates a pathway for up to $35 million in cash awards to support projects including biomass carbon removal and storage. These fiscal frameworks provide the necessary revenue certainty for developers to secure private financing and advance infrastructure construction.

Simultaneously, the Rising Corporate Commitments to Net-Zero Emissions and ESG Goals are driving substantial demand for durable carbon sequestration, establishing a robust voluntary marketplace. Corporations aiming to neutralize hard-to-abate residual emissions are increasingly favoring bioenergy-based capture due to its permanence and measurability compared to nature-based alternatives. This scale of corporate appetite was underscored when, according to Stockholm Exergi, in May 2024, the company entered a record-breaking agreement to provide Microsoft with 3.33 million tonnes of permanent carbon removals over a ten-year period. The dominance of this technology in the voluntary sector is further evidenced by market activity. According to CDR.fyi, in August 2024, Bioenergy with Carbon Capture and Storage accounted for over 90% of the total durable carbon removal transaction volume recorded in the second quarter of the year.

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Key Market Challenges

The high cost of technology integration combined with the logistical complexities of the biomass supply chain acts as a formidable barrier to the commercial scalability of the Global Bioenergy With Carbon Capture and Storage Market. Developing these facilities requires substantial upfront capital to retrofit capture units onto bioenergy plants, creating a financial risk profile that discourages rapid investment. This economic pressure is compounded by the operational difficulty of securing a consistent, large-scale feedstock supply that meets strict sustainability criteria, which is a prerequisite for verifying negative emissions.

Consequently, the industry struggles to expand its footprint because the supply chain for biomass cannot currently match the pace of required technological deployment. The logistical hurdles involved in sourcing, certifying, and transporting biomass create a bottleneck that restricts project feasibility. According to Bioenergy Europe, in 2024, global wood pellet production remained broadly stable at approximately 48.3 million tonnes. This lack of significant growth in feedstock availability highlights how supply chain constraints are directly hampering the market's ability to scale up to meet the rising demand for carbon removal.

Key Market Trends

The Integration into Industrial CCS Hubs and Clusters is fundamentally altering the market structure by shifting focus from standalone facilities to shared transport and storage networks. By decoupling capture operations from sequestration sites, this model reduces the prohibitive capital costs and logistical risks previously associated with single-source projects. Developers are increasingly plugging bioenergy facilities into regional clusters that aggregate emissions from multiple industrial emitters, thereby achieving economies of scale that make smaller capture units financially viable. This rapid expansion of shared infrastructure is quantifiable; according to the Global CCS Institute, October 2024, in the '2024 Global Status of CCS Report', the industry has successfully advanced 212 CO2 transport and storage projects into the Front-End Engineering Design (FEED) phase globally, establishing the necessary backbone to support widespread BECCS deployment.

Concurrently, a Shift Toward Waste-Derived Biomass Feedstocks is gaining momentum as project developers seek to maximize carbon negativity while avoiding competition with food production. Market participants are actively diversifying beyond conventional energy crops, prioritizing agricultural residues, forestry byproducts, and municipal waste to ensure superior lifecycle emissions performance and compliance with rigorous sustainability standards. This transition allows facilities to secure long-term viability against tightening environmental regulations regarding land use. The scale of this operational pivot is illustrated by major utility commitments; according to Orsted, August 2024, in a corporate project update, the company confirmed plans to capture 430,000 tonnes of biogenic carbon dioxide annually at its Kalundborg facilities by exclusively utilizing straw and wood chip residues as fuel sources.

Segmental Insights

The electricity segment represents the fastest growing category within the global bioenergy with carbon capture and storage market. This expansion is primarily driven by the rising global demand for low-carbon baseload power to replace fossil fuel dependency. Analysis from the International Energy Agency indicates that integrating carbon capture into power generation is essential for meeting net-zero pathways. As a result, utility companies are increasingly retrofitting biomass facilities with capture technologies to adhere to stricter environmental regulations. This strategic shift allows power providers to ensure energy security while actively reducing atmospheric carbon levels.

Regional Insights

North America maintains a leading position in the Global Bioenergy With Carbon Capture And Storage (BECCS) Market, driven by robust regulatory frameworks and established infrastructure. The region’s dominance is largely attributed to the United States' Inflation Reduction Act, which incentivizes project development through Section 45Q tax credits for carbon sequestration. Additionally, the U.S. Department of Energy plays a pivotal role by funding carbon transport systems and storage technologies. This comprehensive government support, combined with abundant agricultural and forestry biomass resources, enables the region to effectively scale BECCS operations and attract significant commercial investment.

Recent Developments

• In June 2025, Stockholm Exergi celebrated the commencement of construction for its full-scale bioenergy with carbon capture and storage facility in Värtan, Stockholm. The groundbreaking ceremony followed a successful final investment decision and the securing of necessary environmental permits. Once operational, the plant was designed to capture up to 800,000 tonnes of biogenic carbon dioxide annually from its existing combined heat and power plant. The project, supported by funds from the EU Innovation Fund and the Swedish government, represented a pioneering effort to integrate large-scale carbon removal into urban energy infrastructure.
• In April 2025, Microsoft signed a record-breaking agreement with Fidelis New Energy, through its portfolio company AtmosClear, to permanently remove 6.75 million metric tons of carbon dioxide. This fifteen-year contract facilitated the development of a bioenergy with carbon capture and storage facility at the Port of Greater Baton Rouge in Louisiana. The project was designed to utilize sustainable biomass residues, such as sugarcane waste, to generate energy while capturing emissions. This collaboration underscored the growing scale of the market, as the facility was expected to commence operations in 2029 and significantly contribute to corporate carbon-negative goals.
• In May 2024, Ørsted entered into a major commercial collaboration with Microsoft to sell one million tonnes of carbon removal over a ten-year period. The agreement involved capturing biogenic carbon from the Avedøre Power Station, which is a key component of the Ørsted Kalundborg CO2 Hub. This deal complemented a prior commitment regarding the Asnæs Power Station, bringing the total contracted volume to 3.67 million tonnes. The captured carbon dioxide from these straw- and wood chip-fired heat and power plants was destined for permanent storage in the North Sea, highlighting the commercial viability of bioenergy with carbon capture and storage.
• In January 2024, Drax Group secured a significant regulatory milestone when the UK Government approved the Development Consent Order for its bioenergy with carbon capture and storage project. This approval granted permission for the conversion of two existing biomass generation units at the Drax Power Station into carbon removal technology facilities. When fully operational, these units were projected to remove approximately 8 million tonnes of carbon dioxide annually. This development marked a crucial step for the company in its ambition to deliver large-scale negative emissions, playing a critical role in supporting national energy security and decarbonization targets.

Key Market Players

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

By End Use	By Technology	By Form of Energy	By Application	By Region
Ethanol Production Pulp & Paper Mills Cement Production Biogas Production Electrical Power Plants Heat Power Plants	Oxy-combustion Pre-combustion Post-combustion	Heat Electricity Biofuels Others	Biomass Conversion Carbon Storage	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bioenergy With Carbon Capture And Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE