New York, NY – September 18, 2025 – The global carbon capture and storage (CCS) market, a critical technology in the fight against climate change, is poised for steady expansion amid rising demand for sustainable energy solutions. Valued at USD 3.38 billion in 2024, the market is expected to grow from USD 3.60 billion in 2025 to USD 5.96 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.5% during the forecast period (2025-2033). This surge is fueled by the increasing adoption of CO2 injection for enhanced oil recovery (EOR) and the growing prominence of bioenergy carbon capture and storage (BECCS), according to a comprehensive market analysis by Straits Research.

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Carbon capture and storage technology plays a pivotal role in mitigating greenhouse gas emissions from industrial processes, including power generation, steel production, and cement manufacturing. By capturing CO2 at the source, transporting it via pipelines or ships, and sequestering it in underground geological formations, CCS offers a proven pathway to net-zero ambitions. As governments worldwide enforce stricter regulations on emissions, the CCS market is gaining momentum, particularly in sectors like oil and gas, where CO2 utilization for EOR not only boosts oil production but also enables permanent carbon storage.

"With global energy demands on the rise and climate goals becoming more urgent, CCS represents an indispensable tool for decarbonizing heavy industries, Lead Market Researcher at Straits Research. "The integration of CO2-EOR techniques could unlock 190 to 430 billion barrels of recoverable oil globally, while BECCS emerges as a game-changer for negative emissions."

Key Market Drivers and Challenges

The expanding preference for CO2 injection in enhanced oil recovery stands out as a primary growth catalyst. In mature oil fields, injecting captured CO2 increases reservoir pressure, driving additional oil to production wells while trapping a portion of the gas underground for long-term storage. This closed-loop system aligns economic incentives with environmental benefits, supporting the world's energy needs while curbing atmospheric CO2 levels.

Additionally, the rising visibility of BECCS is creating significant opportunities. This innovative approach combines bioenergy production—such as bioethanol from biomass—with CCS to actively remove CO2 from the atmosphere. Currently, five operational BECCS plants worldwide capture approximately 1.5 million tons of CO2 annually, with applications in waste-to-energy and biofuel production poised for rapid scaling.

However, the market faces headwinds from high implementation costs and surging investments in shale oil and gas. The shale boom, particularly in regions like the U.S. and China, diverts capital from CCS projects, potentially slowing adoption. Despite these restraints, supportive policies and incentives are expected to bolster long-term growth.

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Regional Insights and Market Segmentation

North America leads the CCS landscape, commanding the largest market share with a CAGR of 6.6% in 2024. The U.S. hosts 12 of the world's 24 operational CO2 capture and injection facilities, driven by applications in enhanced oil recovery and sectors like chemicals, hydrogen, and natural gas processing. Europe, the fastest-growing region at a projected CAGR of 6.1%, is advancing through ambitious policies, including Germany's Climate Action Programme 2030, which funds CO2 avoidance in primary industries like cement and steel.

By technology, the pre-combustion capture segment dominates, leveraging gasification processes to separate CO2 from syngas in hydrogen production. Post-combustion capture follows closely, ideal for retrofitting existing power plants. In terms of end-users, the oil and gas sector holds the top position with a CAGR of 5.47%, benefiting from CCS integration in EOR operations. Coal and biomass power plants rank second, with biomass offering potential carbon credits for emissions reductions.

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Recent Developments Highlight Industry Momentum

The CCS sector has seen notable advancements in 2025:

• April 2025: Calpine and ExxonMobil announced a landmark agreement for CO2 transportation and storage, enabling Calpine's natural gas power facility to capture up to 2 million metric tons of CO2 annually—enough to support 500 megawatts of low-carbon electricity production.
• June 2025: Air Liquide invested in ELYgator, a large-scale electrolyzer in the Netherlands, advancing European decarbonization efforts through integrated CCS and hydrogen technologies.
• June 2025: Baker Hughes secured a major order for compression technology in a Middle East CCS hub, marking one of the company's largest contracts in the space.

Key players shaping the market include Aker Solutions, Air Liquide, Baker Hughes, Dakota Gasification Company, ExxonMobil Corporation, Fluor Corporation, and General Electric.