CCS in Power Generation Market - Cumulative Impact of United States Tariffs 2025 - Global Forecast to 2030

The CCS in Power Generation Market size was estimated at USD 17.09 billion in 2024 and expected to reach USD 18.88 billion in 2025, at a CAGR 10.02% to reach USD 30.32 billion by 2030.

The global imperative to decarbonize power generation has propelled carbon capture and storage (CCS) into the spotlight as a critical technology pathway. Emerging economic and environmental pressures demand that utilities and industrial operators pursue novel solutions to mitigate greenhouse gas emissions without compromising energy security. As regulatory frameworks tighten and stakeholders call for tangible climate action, CCS stands at the intersection of innovation, policy and investment.

This executive summary distills the strategic landscape of CCS in power generation by examining recent technological breakthroughs, shifting policy drivers and evolving market forces. It offers decision-makers an integrated view of how CCS technologies are being deployed across diverse power plant configurations and geographical regions. By highlighting segmentation insights, tariff impacts and best-practice case studies, this report equips industry leaders with the actionable intelligence needed to navigate the next phase of low-carbon transition with confidence.

Ultimately, this introduction establishes the context for a sector in transformation-one where collaboration among technology providers, utilities and policymakers will determine the pace and scale of decarbonization. Subsequent sections probe these dynamics in greater depth, underscoring the opportunities and challenges that lie ahead for CCS in power generation.

Over the past five years, the CCS landscape has undergone transformative shifts that are reshaping technology adoption and investment priorities. Technological advances in solvent formulations and membrane materials have driven down energy penalties associated with post-combustion capture, while chemical looping innovations are enhancing the viability of oxy-fuel systems. These breakthroughs, coupled with modular designs, enable CCS to be retrofitted more cost-effectively into existing coal, gas and biomass fired plants.

On the policy front, carbon pricing mechanisms and mandatory capture thresholds have gained momentum in key markets, spurring utilities to evaluate CCS as a hedge against financial and reputational risks. Private and public partnerships are financing pilot projects that demonstrate end-to-end integration-from capture unit deployment to secure geological storage. At the same time, advanced data analytics and digital twins are optimizing operations, reducing downtime and improving overall reliability.

The synergistic effect of these trends has redefined stakeholder expectations. What was once perceived as a niche or high-cost mitigation measure is now viewed as an indispensable tool for achieving net-zero targets. The convergence of technology, finance and regulation is catalyzing a new era in which CCS becomes a commercial reality rather than a theoretical promise.

Anticipated United States tariffs scheduled for 2025 have created a ripple effect across global CCS supply chains and project economics. Components such as centrifugal compressors, advanced membranes and high-grade solvents are subject to increased import duties, driving engineering teams to reassess sourcing strategies. In response, many technology providers are accelerating domestic manufacturing partnerships to minimize cost impacts and ensure timely project delivery.

The imposition of tariffs has also prompted power generators to revisit life-cycle cost models. Higher upfront capital expenditures for imported capture modules can be offset by lower operating expenses through performance guarantees and long-term service agreements. Project developers are negotiating fixed-price contracts with equipment suppliers to insulate against tariff volatility, while utilities in tariff-exempt regions are emerging as alternative hubs for procurement and fabrication.

Despite these headwinds, market participants maintain a cautiously optimistic outlook by leveraging local supply bases and exploring tariff mitigation tactics, such as tariff classifications for specialized alloys. The cumulative effect of the U.S. tariff regime is accelerating domestic ecosystem development and reinforcing the strategic importance of supply chain resilience for CCS project success.

The market divides across multiple dimensions, each revealing distinct opportunities and challenges for technology deployment. In terms of technology types, oxy-fuel combustion technologies are advancing chemical looping reactors to boost CO₂ purity, while post-combustion solutions focus on adsorption-based, membrane-based and solvent-based capture to retrofit existing units. Pre-combustion options leverage absorption-based and gasification-based processes, offering integration flexibility in integrated gasification combined cycle and hydrogen production hubs.

When examining component types, capture units encompass both absorption towers and membrane modules that deliver varied capture rates. Compression units rely heavily on centrifugal compressors engineered for high throughput, whereas storage considerations include saline aquifers and sophisticated subterranean reservoirs. Transportation logistics integrate pipeline networks and shipping routes, ensuring that captured CO₂ flows seamlessly from the point of capture to permanent or enhanced oil recovery destinations.

Power generation segmentation highlights biomass-based power plants, which include biomass co-firing and direct-fired biomass applications as prime candidates for negative emissions. Coal-based facilities, especially those using supercritical combustion and integrated gasification combined cycle designs, remain central to large-scale CCS roll-out. Gas-based power plants, utilizing combined cycle gas turbines and simple cycle configurations, offer modular capture opportunities and rapid deployment cycles.

End-user segmentation underscores industrial customers in cement and petrochemical sectors, residential small-scale pilot deployments and both private and public utilities seeking to decarbonize baseload generation. Applications range from enhanced oil recovery leveraging depleted oil reserves and hydrocarbon fields, to industrial separation processes targeting emissions from cement and steel plants, and permanent storage solutions in deep ocean and geological formations. These segmentation insights help stakeholders align their strategies with the specific technical, logistical and regulatory requirements of each market slice.

Regional dynamics vary significantly across the Americas, Europe Middle East & Africa, and Asia-Pacific, shaping CCS adoption in unique ways. In the Americas, strong federal incentives and state-level carbon markets drive large-scale projects, with dedicated hubs forming along major saline aquifer basins. Canada’s regulatory clarity and Mexico’s emerging CCS mandates further bolster cross-border collaboration on shared storage sites.

In Europe Middle East & Africa, stringent emissions targets and the European Union’s Innovation Fund are catalyzing demonstration projects. North Sea geological formations present mature storage opportunities, while Middle Eastern oil-rich nations explore CCS to sustain hydrocarbon production and reduce flaring. Industrial clusters in Germany and the UAE serve as testbeds for capture technologies tailored to steel and cement applications.

Asia-Pacific stands out for its rapid power generation expansion and growing carbon constraints. Japan and South Korea incentivize carbon capture through tax credits and research partnerships, while China’s pilot programs in supercritical coal plants signal strong government backing. Australia is advancing CO₂ transport corridors and permanent storage in offshore reservoirs, positioning the region as a pivotal growth engine for global CCS deployment.

Across the competitive landscape, technology developers and service providers are forging strategic partnerships and cultivating capabilities to differentiate their offerings. Industry pioneers such as Air Products and Chemicals, Inc. and Aker Solutions ASA by Aker Holding excel in integrated capture-to-storage solutions, combining proprietary solvents with turnkey engineering expertise. Babcock & Wilcox Enterprises, Inc. and Honeywell International Inc. lead in modular capture systems that reduce installation timelines and capital intensity.

Major energy corporations, including Chevron Corporation and Exxon Mobil Corporation, leverage their subsurface expertise to secure CO₂ storage assets and de-risk long-term operations. Climeworks AG and Global Thermostat drive innovation in direct air capture technologies, broadening the addressable market for negative emissions. General Electric Company and Hitachi, Ltd. integrate digital twins and advanced materials to optimize compressor efficiency and reduce parasitic loads.

Specialized firms like Dakota Gasification Company by Basin Electric Power Cooperative and Halliburton Energy Services, Inc. focus on unified project management, spanning capture unit design through drilling and reservoir monitoring. John Wood Group PLC and L’air Liquide S.A. deliver full lifecycle services, while NRG Energy, Inc. invests in demonstration projects to validate large-scale capture performance. These diverse capabilities underscore the multifaceted nature of competition in the CCS arena.

Industry leaders must adopt a multi-pronged strategy to capitalize on CCS growth while mitigating execution risks. First, they should establish cross-sector alliances that pool expertise in capture technologies, compressor manufacturing and subsurface storage development. Collaborative R&D consortia can accelerate innovation cycles and share the burden of pilot-scale experimentation.

Second, executives must prioritize supply chain diversification to reduce tariff exposure and ensure equipment availability. Early engagement with domestic fabricators and logistics partners safeguards project timelines and cost targets. Third, companies should leverage digitalization-deploying advanced analytics, remote monitoring and digital twin simulations-to enhance operational resilience and optimize maintenance cycles.

Fourth, stakeholder engagement plans are essential; transparent communication with regulators, local communities and investors builds trust and facilitates permitting processes. Fifth, organizations should embed flexibility into contract structures, using performance-based incentives and phased commissioning to align financial returns with technology maturation. By following these recommendations, industry players can position themselves at the forefront of the CCS-driven energy transition.

As the decarbonization imperative intensifies, carbon capture and storage has emerged as a cornerstone technology for reducing emissions from power generation. The interplay of technological innovation, regulatory frameworks and supply chain dynamics will determine the pace at which CCS matures from demonstration to mainstream adoption. Stakeholders across utilities, technology providers and government bodies must collaborate to tackle technical hurdles, optimize project economics and secure public support.

By integrating segmentation insights with regional strategies and competitive intelligence, decision-makers can develop targeted roadmaps that align with their operational capabilities and decarbonization goals. The journey toward net-zero power systems requires both strategic foresight and tactical agility. The sections that follow this summary delve deeper into the detailed analyses that underpin these strategic paths, providing a comprehensive foundation for informed action.

To explore detailed data, case studies and actionable strategies for your organization, contact Ketan Rohom, Associate Director, Sales & Marketing. Engage with Ketan to secure your copy of the full market research report and gain the critical insights needed to lead in the rapidly evolving CCS landscape. Reach out today to position your team at the cutting edge of power sector decarbonization.