Turning Challenge into Opportunity 2025

Developers are pursuing modular designs and locating projects near renewable energy hubs, but financing and permitting continue to slow expansion. Bioenergy with carbon capture and storage (BECCS) Bioenergy with carbon capture and storage integrates capture technology into existing biomass facilities, producing renewable energy while permanently removing CO2. The technology is mature, but deployment is limited by feedstock logistics and the slow build-out of storage and pipeline infrastructure. In Europe, cluster-based initiatives – such as the North Sea storage network – illustrate how shared assets can improve bankability. In the US, policy uncertainty around the long-term future of supportive tax credits remains a concern. We can deliver clean power and carbon removal at once, but only one of those has a clear market price. Dawn Whitworth, Vice President, Communications and Business Development, Elimini, Drax Group Although the three approaches differ in scale, permanence and maturity, all often confront the same structural paradox: proven capability without stable market architecture. Suppliers interviewed for this report identified the following key themes, insights and opportunities. Supplier perspectives: key themes and insights Economic viability Suppliers operate amid volatile demand and fluctuating buyer expectations. Biochar and BECCS rely on dual revenue streams – product sales and carbon credits – but the latter dominates financial planning. DAC remains capital-intensive and dependent on a limited set of advance-purchase buyers. Across technologies, suppliers called for long-term offtake agreements that mimic power-purchase contracts to stabilize revenues. Inconsistent markets Limited liquidity and sporadic demand cause price fluctuations that discourage investment. The same tonne of CO2 can trade at $10 or $600 depending on buyer sentiment. Policy uncertainty The current global policy landscape is varied and lacks global cohesion. While some policies are supportive – including the EU’s Carbon Removal Certification Framework (CRCF) and certain US tax credits – suppliers were concerned about the evolving geopolitical landscape and the fear that this could undermine investor confidence. Suppliers maintained that regulation should evolve towards consistency across jurisdictions and remain durable over the long term. Financing limitations Without standardized offtake structures, lenders hesitate to provide debt financing. Many projects rely on equity or grants, which help get the project started, but cannot sufficiently finance large-scale capacity. Suppliers repeatedly compared their predicament to early renewable energy developers before standardized power purchase agreements (PPAs) created bankability. They support blended finance – combining public guarantees with private capital – to bridge the first-of-a-kind funding gap.132 Infrastructure gaps DAC and BECCS require CO2 transport and storage networks; biochar depends on reliable biomass supply chains. Permitting delays for critical infrastructure pose a key risk to projects and can potentially extend timelines by years. Suppliers viewed shared infrastructure as a public good – analogous to power grids – which could therefore be a target for public investment. Buyer behaviour The buyer base remains limited, dominated by forward-leaning technology firms and philanthropic coalitions. Hard-to-abate industries have yet to engage meaningfully. Suppliers emphasized that buyers with in-house carbon expertise are the most effective partners, underscoring the need for corporate capacity building. Turning Challenge into Opportunity: Supplier Voices from Heavy-Emitting Sectors 45