Oxyfuel Combustion Technology Market Size, Share, and Industry Analysis, By Technology (Oxy-Coal Combustion, Oxy-Natural Gas Combustion, and Others), By Application (Power Generation, Industrial Process, and Others), and Regional Forecast, 2025-2032

Oxyfuel combustion technology is a process of burning fuel using air that is stripped of other gases, such as argon and nitrogen, until it is highly concentrated oxygen. Oxygen-rich air is combined with a fuel like natural gas or coal into a stream of carbon dioxide (CO2) inside a combustor. The resulting carbon dioxide and steam push a turbine that generates power. This combustion technology is applied in various industries, such as power generation, cement production, glass manufacturing, and steelmaking, where it helps improve energy efficiency, reduce emissions, and enable carbon capture and sequestration initiatives.

• According to IEA's Carbon Capture, Utilisation and Storage report, over 40 commercial facilities are in operation using carbon capture, utilization, and storage (CCUS) technology for industrial processes, fuel transformation, and the power generation sector. In 2023,
• As per the latest data from IEA, the U.S. announced investments in CCUS project development, which included USD 1.7 billion for carbon capture demonstration projects and USD 1.2 billion for direct air capture (DAC) hubs under the 2021 Infrastructure Investment and Jobs Act. The EU announced USD 1.5 billion for CCUS projects under the latest Innovation Fund round and over USD 500 million for CO2 transport and storage projects under its Connecting Europe Facility program.

The COVID-19 pandemic halted almost all industries with respect to production, supply chain, manufacturing, transportation, and others. The COVID-19 outbreak reduced production levels and operational practices, which delayed the implementation of oxyfuel combustion projects and investments in related technologies. Moreover, fluctuations in energy demand impacted the overall power generation market, which eventually affected the oxy fuel combustion technology market negatively.

KEY INSIGHTS

The report covers the following key insights:

•          Recent Advancements in the Oxyfuel Combustion Technology market

•          Key Industry Trends

•          Regulatory Landscape for the Oxyfuel Combustion Technology Market

•          Key Industry Developments (Mergers, Acquisitions, and Partnerships)

•          Impact of COVID-19 on the Market

SEGMENTATION

 ANALYSIS BY TECHNOLOGY

Based on technology, the market is segmented into oxy-coal combustion, oxy-natural gas combustion, and others.

The oxy-coal combustion segment holds a significant share of the market since this is the widely used technology due to the easy availability of coal across all regions. In this method, combustion air is separated into oxygen and nitrogen, and coal is burned in a mixture of oxygen and recycled flue gas.

Oxy-Natural Gas Combustion is the second leading technology type in the market after oxy-coal combustion. Natural gas is a highly efficient fuel that combusts and is easy to be converted into a liquid.

ANALYSIS BY APPLICATION

Based on application, the global market for oxyfuel combustion technology is segmented into power generation, industrial process, and others.

Oxyfuel combustion technology is used in industrial applications for various sectors, such as cement production, glass manufacturing, steelmaking, and others. This technology helps in improving energy efficiency, reducing emissions, and enabling CCS initiatives, which makes it a preferable method for industrial applications. In the power generation sector, oxyfuel combustion technology is used to generate electricity by burning fossil fuels such as coal or natural gas in an oxygen-rich environment.

REGIONAL ANALYSIS

The oxyfuel combustion technology market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America has the presence of significant oxyfuel combustion plants, especially in the U.S., where the market growth is driven by power generation and industrial applications. European countries have been early adopters of oxyfuel combustion technology, especially in the cement and steel industries, driven by stringent emissions regulations and climate targets.

In the Asia Pacific region, with increasing demand for energy, industrial growth, and other environmental concerns, there is a growing adoption of oxyfuel combustion technology in countries, including China and India.

Latin America, and Middle East & Africa are emerging markets for oxyfuel combustion technology owing to various initiatives and investments to boost industrial manufacturing and environmental regulations.

KEY PLAYERS COVERED

The report includes profiles of key players, such as Air Liquide, Hitachi, Foster Wheeler, Alstom, Babcock & Wilcox, Air Products and Chemicals, Inc., Clean Energy Systems, Sumitomo SHI FW, Valverde Power Solutions, LLC, Doosan Heavy Industries & Construction, Andritz AG, and Linde plc.

KEY INDUSTRY DEVELOPMENTS

• February 2023- Valverde Power Solutions, Inc., Clean Energy Systems, MISC Berhad, and Aker Solutions signed an agreement to fund a set of preliminary front-end engineering design (Pre-FEED) to assess and demonstrate two emission-free power projects utilizing the Clean Energy Systems' Oxyfuel burner technology in North America.
• March 2022- Babcock & Wilcox (B&W) and Kiewit Industrial signed a partnership to design and develop the World's Largest Net-Negative CO2 biomass-to-energy facility for Fidelis New Energy using OxyBright Carbon Capture Technologies of B&W. This new facility has a capacity of 200 megawatts (MW) and is one of the largest of its kind.