Carbon Dioxide Removal Series: BECCS- Bioenergy with Carbon Capture and Storage | Market Compass | 2025

asoni93
Nov 21
2 min read

Updated: 5 days ago

Current Landscape

Bioenergy with Carbon Capture and Storage (BECCS) is the second largest source of current carbon removals (after afforestation/ reforestation), collectively removing about 1.25 million tCO₂e per year—primarily from ethanol facilities in the U.S. and power plants in Europe. However, over 100 plants are expected to come online by 2030 with more than 70 million tCO₂e per year planned annual capture capacity, backed by increasing policy support and institutional investment.

Investments in BECCS

Cumulative investments have surpassed $2.5 billion, with 2025 marking a record year at $2 billion (till date), fueled by both public and private capital. The largest single commitment to date is the Swedish Energy Agency’s $1.8 billion grant to Stockholm Exergi, aimed at developing Europe’s largest BECCS facility. In the U.S., the Department of Energy has supported ethanol-based retrofits and infrastructure upgrades, while the UK’s Contracts for Difference (CfD) and the EU Innovation Fund are backing large-scale and integrated BECCS projects.

Carbon offtake agreements are accelerating the commercialization of BECCS. Between 2022 and 2025, contracted volumes for BECCS-based carbon removal credits grew from just 2 million to over 12 million tons of CO₂, signaling increasing demand certainty. In total, more than 24 million tons of BECCS CDR credits have been contracted to date.

Corporate buyers such as Microsoft (20.3 million tCO2e), Respira, Frontier, and Equinor have emerged as major demand drivers. On the supply side, companies like AtmosClear, CO280, Stockholm Exergi, Orsted, and Drax are at the forefront of credit generation.

Registry issuance is slowly picking up with 371,856 tons issued between 2024 and 2025 and 182,929 retired within this time.

cCarbon Viewpoint

The appeal for BECCS is its ability to deliver both renewable energy (or clean fuel) as well as durable carbon removal. This dual value proposition is attracting growing interest—not only from government but increasingly from the private sector.

In the near to mid-term, BECCS represents an economically viable way to create a negative carbon cycle. Most of the revenue will come from the sale of energy or fuel; and by an equivalent carbon cost of between USD 30/ t CO2e and USD 100/ t CO2e, the projects can generate a respectable return. That in -turn can attract private capital and create a virtuous cycle of more projects.

cCarbon sees most potential in waste-to-energy plants with CCS and ethanol generation with CCS pre-2030. Government concessions, storage pipelines and timely permitting will play an important part.

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Table of Contents

Sector Snapshot……………………………………………………………………………….1

State of the Sector…………………………………………………………………………….5

Defining BECCS……………………………………………………………………………….5

How is it different from the traditional CCS?………………………………………5

Current State…………………………………………………………………………………..6

Categorization of Developers and Regional Spread……………………………..9

Investments in BECCS Landscape……………………………………………………………………..10

Public Sector: Paving the Path for BECCS Advancement……………………..11

Private Capital: Momentum Yet to Build……………………………………………11

Offtake Deals :surging ahead…………………………………………………………….11