The world will need greatly increased energy supply in the future for sustained economic growth, but the related CO2 emissions and the resulting climate changes are becoming major concerns. CO2 is one of the most important greenhouse gases that is said to be responsible for approximately 60% of the global warming. Along with improvement of energy efficiency and increased use of renewable energy sources, carbon capture and sequestration (CCS) is expected to play a major role in curbing the greenhouse gas emissions on a global scale. This article reviews the various options and technologies for CO2 capture, specifically for stationary power generation sources. Many options exist for carbon dioxide capture from such sources, which vary with power plant types, and include post-combustion capture, pre-combustion capture, oxy fuel combustion capture, and chemical looping combustion capture. Various carbon dioxide separation technologies can be utilized with these options, such as chemical absorption, physical absorption, adsorption, and membrane separation. Most of these capture technologies are still at early stages of development. Recent progress and remaining challenges for the various CO2 capture options and technologies are reviewed in terms of capacity, selectivity, stability, energy requirements, etc. Hybrid and modified systems hold huge future potentials, but significant progress is required in materials synthesis and stability, and implementations of these systems on demonstration plants are needed. Improvements and progress made through applications of process systems engineering concepts and tools are highlighted and current gaps in the knowledge are also mentioned. Finally, some recommendations are made for future research directions.