DAC Hubs NOFO_DE-FOA-0003442.pdf

U.S. Department of Energy

Office of Clean Energy Demonstrations

Regional Direct Air

Capture Hubs –

Recurring Program

Funding Opportunity Number: DE-FOA-0003442

Concept Paper due: January 31, 2025, 11:59 pm ET

Pre-Application Submission due: January 31, 2025, 11:59 pm ET

Application due: July 31, 2025, 11:59 pm ET

Questions about this NOFO? Email: DAC-OCED@hq.doe.gov

Problems with OCED eXCHANGE? Email OCED-ExchangeSupport@hq.doe.gov and include the NOFO title and number in subject line.

mailto:OCED-ExchangeSupport@hq.doe.gov

1. REVIEW 2. GET READY 3. SUBMIT 4. SELECTION 5. REQUIREMENTS 6. CONTACTS

Step 1: Review the Funding Opportunity

Basic Information

Eligibility

Program Description

Step 2: Get Ready to Apply

Application Contents and Format

Step 3: Submit Your Application

Submission Requirements and Deadlines

Step 4: Learn About Review and Award

Application Review Information

Risk Review

Award Notices

Step 5: Learn about Post-Selection and Post Award

Requirements

Post-Selection Information Requests and Submissions

Post-award Requirements and Administration

Terms and Conditions

Reporting

Step 6: Contacts and Support

Agency Contacts

Helpful Websites

Before you begin

If you believe you are a good candidate for this funding opportunity, secure your SAM.gov and other registrations now. If you are already registered, make sure your registration is active and up to date.

All registrations are free.

See Step 3: Submit Your Application

SAM.gov registration (this can take several weeks)

You must have an active account with SAM.gov. This includes having a Unique Entity Identifier (UEI).

OCED eXCHANGE (this can take 48-72 hours)

You must register with OCED eXCHANGE. Doing so requires a Login.gov or ID.me registration

FedConnect (this can take 48-72 hours)

You must register with FedConnect. Registering with FedConnect® is fast, easy, and free. Only individuals who are designated as Points of Contact in SAM.gov can create a new company account.

Grants.gov registration (this can take several days)

You must have an active Grants.gov registration. Doing so requires a Login.gov registration as well.

Apply by

Concept Papers are due on January 31, 2025, 11:59 p.m. Eastern Time.

Pre-Application Submissions are due on January 31, 2025, 11:59 p.m. Eastern Time.

Applications are due by July 31, 2025, 11:59 p.m. Eastern Time.

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STEP 1:

REVIEW THE FUNDING

OPPORTUNITY

IN THIS STEP

Basic Information

Eligibility

Program Description

Basic Information

Funding Detail

Announcement Type: Initial

Expected total available funding: up to $1,800,000,000, beginning in FY 2026

Expected number and type of awards:

Topic Area 1: 1 – 3 cooperative agreements or awards through the Department of Energy’s Other Transaction (OT) authority, each up to $250M Federal share

Topic Area 2: 4 – 8 cooperative agreements, each up to $50M

Federal share

Topic Area 3: 2 – 6 cooperative agreements, each up to $600M

Federal Share

Expected dollar amount of individual awards: Up to

$600,000,000 (depending on Topic Area).

Expected award project period: The maximum expected project period of performance is 10 years; the scope of the proposed project would determine the specific project period of performance within the maximum project period.

Depending on the number and quality of Applications, DOE may not award the full NOFO funding amount. As funds remain available, DOE expects to issue additional re-openings to support the program’s strategy, and/or additional strategies and approaches or incorporate lessons learned from earlier application rounds.

Agency Contact Information

Office of Clean Energy Demonstrations

U.S. Department of Energy

1000 Independence Ave SW

Washington, D.C. 20585

Email: OCED@hq.doe.gov

Phone: 202-586-OCED

For questions relating to this specific NOFO, please send emails to DAC-OCED@hq.doe.gov.

Executive Summary

KEY DATES

Concept Paper Deadline:

January 31, 2025, 11:59 pm

Pre-Application Submission

Deadline:

January 31, 2025, 11:59 pm

Application Deadline:

July 31, 2025, 11:59 pm

Anticipated Selection:

December, 2025

Anticipated Timeframe for

Completion of Award Negotiations:

Spring, 2026

KEY FACTS

Funding Opportunity Title:

Regional Direct Air Capture Hubs –

Recurring Program

Funding Opportunity Number:

DE-NOFO-0003442

Assistance Listing:

81.255

NOTE: The 2024 Revisions to the OMB Guidance for Federal Financial Assistance will be in effect for awards issued under this NOFO.

mailto:OCED@hq.doe.gov mailto:DAC-OCED@hq.doe.gov

Executive Summary

The Regional Direct Air Capture Hubs Recurring Program (“the Program”)(comprising this initial Notice of

Funding Opportunity (NOFO) and any subsequent re-openings and related solicitations) is designed to provide direct air capture (DAC) technology and project developers with support at various stages on their commercialization path towards the realization of four regional DAC hubs, building on the momentum and potential of projects selected under the first Funding Opportunity Announcement (“FOA-1”) (DE-FOA-

0002735), other DOE-supported initiatives, and privately funded activities.

The Program seeks to realize the potential of the diverse DAC technologies that have achieved or are approaching commercial readiness at or above Technology Readiness Level (TRL) 7 (as defined by DOE G

413.3-4A Technology Readiness Assessment Guide, 2011), while addressing the most critical Commercial

Adoption Readiness Level (ARL) obstacles to their adoption and scaling.

The Program will support the DAC industry to achieve the Bipartisan Infrastructure Law (BIL) goals of four regional 1,000,000 tonns per annum (TPA) hubs by funding three complementary project types: large-scale commercial DAC facilities (“LSCs,” Topic Area 3), mid-scale commercial DAC facilities (“MSCs,” Topic Area

2), and infrastructure access platforms for commercializing new DAC technologies (“IAPs,” Topic Area 1).

The objectives of the Program are to:

• Encourage the development and expansion of four regional DAC hubs by funding the large-scale demonstration facilities that will comprise those hubs

• Provide complementary support for DAC developers’ first commercial demonstration facilities as they advance to large scale, including facilitating access to reliable low carbon energy sources and CO2 storage or utilization

The Program is authorized under the Regional Direct Air Capture (DAC) Hubs Program (“Regional DAC

Hubs”) (42 U.S.C. § 16298d(j)) established by the Bipartisan Infrastructure Law.

The following entities are eligible to apply as recipients: (1) institutions of higher education; (2) for-profit organizations; (3) nonprofit organizations; (4) state and local governments; (5) and Indian Tribes. See the

Applicant Eligibility Guidance on the Apply for Funding Opportunities page for details.

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Eligibility

Eligible Applicants The proposed recipient and subrecipient(s) must be domestic entities except as provided in the Foreign

Entities section. The following types of domestic entities are eligible to participate as a recipient or subrecipient of this Notice of Funding Opportunity (NOFO):

• Institutions of higher education;

• For-profit organizations;

• Nonprofit organizations;

• States and local governments, and

• Indian Tribes, as defined in section 4 of the Indian Self-Determination and Education Assistance Act, 25 U.S.C. § 53041

To qualify as a domestic entity, the entity must be organized, chartered, or incorporated (or otherwise formed) under the laws of a particular state or territory of the United States or under the laws of the

United States; have majority domestic ownership and control; and have a physical place of business in the

United States.

U.S. Department of Energy (DOE)/National Nuclear Security Administration (NNSA) Federally Funded

Research and Development Centers (FFRDC)s are eligible to apply for funding as a subrecipient but are not eligible to apply as a recipient. The funding for the FFRDC will flow through the recipient. Non-DOE/FFRDCs are eligible to participate as a subrecipient but are not eligible to apply as a recipient. Notwithstanding the above, Federal agencies, instrumentalities, and corporations (other than DOE) are eligible to participate as a subrecipient but are not eligible to apply as a recipient.

For non-DOE/NNSA FFRDCs, the Federal agency sponsoring the FFRDC must authorize in writing the use of the FFRDC on the proposed project and this authorization must be submitted with the Application. The use of an FFRDC must be consistent with its authority under the award.

For DOE/NNSA FFRDCs, the cognizant Contracting Officer for the FFRDC must authorize in writing the use of the FFRDC on the proposed project and this authorization must be submitted with the Application. The funding for the FFRDC will flow through the prime recipient. The following wording is acceptable for this authorization: “Authorization is granted for the Laboratory to participate in the proposed project. The work proposed for the Laboratory is consistent with or complementary to the missions of the Laboratory and will not adversely impact execution of the DOE assigned programs at the Laboratory.”

1 “Indian Tribe,” for the purposes of this NOFO and as defined in in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. § 5304), means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688) [ 43 U.S.C. § 1601, et seq.], which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

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Entities that are debarred, suspended, or are otherwise excluded or ineligible from participating in Federal programs are ineligible to participate as recipients or subrecipients under this program and their Applications will not be reviewed for consideration.

Entities identified on Department of the Treasury Office of Foreign Assets Control Treasury’s Sanctions

Program Specially Designated Nationals List are prohibited from doing business with the United States government and are not eligible. See OFAC - Sanctions List Service (treas.gov).

Entities of Concern are prohibited from participating in projects selected under this NOFO (see the Entity of

Concern Prohibition section for additional details and definitions).

Non-profit organizations described in Section 501(c)(4) of the Internal Revenue Code of 1986 that engaged in lobbying activities after December 31, 1995, are not eligible to apply for funding. For more information, review the Applicant Eligibility Guidance on the Required Application Documents page.

Other Eligibility Criteria

Foreign Entities

In general, foreign entities are not eligible to apply as either a recipient or subrecipient. In limited circumstances, DOE may allow a foreign entity to participate as a recipient or subrecipient. A foreign entity may submit an Application to this NOFO but the Application must be accompanied by a waiver request for the foreign entity’s participation. Likewise, if the applicant seeks to include a foreign entity as a subrecipient, the applicant must submit a separate waiver request in the Application for each proposed foreign subrecipient.

Foreign entity waiver request information can be found in the Foreign Entity Participation and Performance of Foreign Work in the United States Guidance located on the What other Information may be Requested?

Page and in the Waiver Requests section of this NOFO. DOE’s decision concerning foreign entity participation or foreign entity work is not appealable.

Entity of Concern Prohibition

Prohibition

Entities of Concern are not eligible. DOE is prohibited by law from funding any grant, contract, cooperative agreement, or loan of $10 million or more in DOE funds to Entities of Concern. In addition, such entities

(including an individual that owns or controls, is owned or controlled by, or is under common ownership or control with an Entity of Concern) are prohibited from receiving any funds or performing work under any award involving DOE activities authorized under Division A or B of Public Law 117-167, subject to certain penalties. See section 10114 of Public Law 117-167 (42 USC 18912) and section 310 of Public Law 118-42 and other applicable law for additional information.

By applying to this NOFO, the applicant is certifying that neither the applicant nor any of the project participants qualify as Entities of Concern.

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Definitions

“Entity of Concern” is defined as in section 10114 of Public Law 117-167 (42 USC 18912), also known as the

CHIPS and Science Act, as any entity, including a national, that is—

(a) Identified under section 1237(b) of the Strom Thurmond National Defense Authorization Act for

Fiscal Year 1999 (50 U.S.C. 1701 note; Public Law 105–261);

(b) Identified under section 1260H of the William M. (Mac) Thornberry National Defense Authorization

Act for Fiscal Year 2021 (10 U.S.C. 113 note; Public Law 116– 283);

(c) On the Entity List maintained by the Bureau of Industry and Security of the Department of

Commerce and set forth in Supplement No. 4 to part 744 of title 15, Code of Federal Regulations;

(d) Included in the list required by section 9(b)(3) of the Uyghur Human Rights Policy Act of 2020

(Public Law 116–145; 134 Stat. 656); or

(e) Identified by the Secretary, in coordination with the Director of the Office of Intelligence and

Counterintelligence and the applicable office that would provide, or is providing, covered support, as posing an unmanageable threat—

(i) To the national security of the United States; or

(ii) Of theft or loss of United States intellectual property.

“National” is defined as in section 10114 of the CHIPS and Science Act as having the meaning given the term in section 101 of the Immigration and Nationality Act (8 USC 1101).

“Secretary” is defined as in section 10114 of the CHIPS and Science Act as the Secretary of Energy.

Project Eligibility

Specific project eligibility criteria for each Topic Area are discussed in Expected Goals, Indicators, Targets, Baseline Data, and Data Collection. The following applies to all Topic Areas.

The term "eligible project" means “a direct air capture project or a component project of a regional direct air capture hub.” (42 U.S.C. § 16298d(j)(1)(A)).

The term “regional direct air capture hub” means “a network of direct air capture projects, potential carbon dioxide utilization off-takers, connective carbon dioxide transport infrastructure, subsurface resources, and sequestration infrastructure located within a region.” (42 U.S.C. § 16298d(j)(1)(B)).

Cost Sharing

The cost share must be at least 50% of the total project costs for demonstration projects or a commercial application activity. Each Budget Period of the project must also meet the 50% cost share requirement unless a different basis is sufficiently justified and negotiated. DOE funding is limited to the amount specified in the award. Any cost increases after award must be covered by additional non-Federal cost share.

Cost share may be provided in the form of cash or cash equivalents, or in-kind contributions.

The cost share must come from non-Federal sources unless otherwise allowed by law. Cost share may come from project participants, state or local governments, or other third-party financing. Generally, realized tax credits may be used as cost share.2 In general, deferred or avoided costs may not be used as cost share.

Non-Federal cost share can include funds received under the power program of the Tennessee Valley

Authority, which is specifically allowed under the Energy Policy Act of 2005. See 42 U.S.C § 16352(c)

(Section 988 of Energy Policy Act of 2005) and 2 CFR 910.130(d)(2)(v).

Federal financing, such as DOE Loan Guarantees, cannot be leveraged by applicants to provide the required cost share. Program Income should not be included as cost share in an applicant’s budget. More information on Program Income is available in the Program Income section of this NOFO.

To assist applicants in calculating proper cost share amounts, DOE included a cost share information sheet and sample cost share calculation within the Cost Sharing Guidance located on the Preparing Your

Budget page.

Program Description

Purpose

Congress directed DOE to responsibly catalyze a commercial DAC industry in the US and establish the

United States as the global leader in developing and demonstrating the commercial viability of direct air capture technology. To do so, the Program will contribute to the following goals:

1. Commercial scale-up: validate commercial scale demonstrations for a diversity of DAC technologies and facilities concepts that build confidence to catalyze private sector capital formation. This includes assessing technology scale-up risks, cost, performance, business models, host site, infrastructure, offtakers, markets and financing structures for the most promising technologies and approaches.

2. Infrastructure: build out the related infrastructure to sustainably scale up DAC technologies and facilities concepts, including clean power generation, heat integration, transport, and secure geologic storage and/or CO2 conversion pathways.

3. Climate impact: prove at commercial scale that DAC technologies and different facilities concepts can maximize net-negative emissions goals as well as address other potential environmental impacts (e.g., water availability for at-scale projects).

4. Responsible demonstrations: develop the business models and Community Benefit Plans (CBPs) that provide the greatest positive benefits to communities while minimizing negative impacts, invest in the American workforce, advance Diversity, Equity, Inclusion, and Accessibility (DEIA), and promote strong Tribal, community, and workforce engagement.

2 Tax credits authorized by the Inflation Reduction Act of 2022 (P.L. 117-169) are considered a non-Federal source and are not a Federal award for purposes of cost sharing.

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The boundaries of the four regional DAC hubs are not yet determined, and once determined, may be subject to revision through future offering rounds, changes to project locations, and private sector activities. Applicants will not be subject to geographic boundaries or restrictions for this first (CY24)

NOFO opening, although future competitive funding rounds may have such restrictions. The following graphic shows the proposed locations of FOA-1 projects; the existing projects have already formed rough clusters, which, together with the projects selected under this NOFO, will inform the future definition of regional hubs:

Funding Priorities

Funding will be offered through the three complementary Topic Areas described below.

Topic Area 1: Infrastructure Access Platforms

Through TA-1, DOE intends to provide funding to create a host site—or infrastructure access platform (IAP)— for DAC developers at the early stages of commercialization (e.g., small-scale and mid-scale facilities). These

IAP will give DAC developers a place to build and operate facilities with access to shared post-regeneration

CO2 conditioning processes, such as dehydration, oxygen removal, and compression. Additionally, IAPs will be expected to provide access to the other critical elements that are required to make a DAC facility commercially viable, namely, 1) clean energy and 2) CO2 offtake, such as geologic storage, enhanced oil recovery, integration into a carbon-based conversion process or utilization in a valuable product, and/or a pipeline or other mode of CO2 transportation to those facilities if not co-located at the IAP.

Some of the DOE and privately funded DAC projects already advancing in the U.S. may themselves be good candidates for IAPs. Funding will go towards the design, permitting, National Environmental Policy Act

(NEPA) review, community benefits activities, construction, and operation of an IAP.

Awards under TA-1 of this NOFO may, at the discretion of OCED, be executed through Other Transaction

(OT) agreements and will follow a customized project phasing structure. Recipients funded through

Cooperative Agreements will be expected to execute all four phases of their project.

Selectees funded through Cooperative Agreements will complete OCED’s Phase 1 (Detailed Project

Planning) before being considered and approved to continue into Phase 2 (Selectees or Recipients must complete each project Phase before being considered and approved for the next Phase). All applicants will be evaluated, in part, based on their Applications and demonstrated readiness for Phases 1 through 4.

DOE anticipates several profiles as potential locations for IAPs. Existing test centers, industrial facilities, power generation facilities, CO2 conversion facilities, characterized CO2 storage reservoirs, CO2 pipeline hubs, and other locations may already have one or more of the critical elements for establishing an IAP. A stand-alone greenfield development of the clean energy and carbon transportation and storage resources for an IAP would also be eligible. DOE will welcome Applications from a diverse set of applicants to find the host sites that maximize the impact of Federal funding, provide benefits to DAC developers, and have a high potential for project success based on economic viability and community support. Potential TA-1 applicants are encouraged to explore additionality and other measurement, reporting, and verification requirements related to energy inputs that may be required by DAC tenants.

To be considered for TA-1, the applicant must submit the following: 1) plan to create access to, or develop, energy and offtake (i.e., CO2 storage, transport, utilization) resources or services, 2) business plan, 3) initial list of potential DAC tenants, 4) plan to develop additional DAC-related balance-of-plant infrastructure, and

5) Community Benefits Plan including analysis of local community support or opposition to DAC.

Projects may propose a variety of carbon offtake applications, including but not limited to, permanent geologic storage and utilization in short-lived or long-lived products. Projects that vent their CO2 (“catch-and-release”) will not be considered.

Topic Area 2: Mid-Scale Commercial DAC Facilities

Through TA-2, DOE seeks to fund Mid-Scale Commercial (MSC) DAC facilities as supplemental contributors to the creation and expansion of four regional DAC hubs with megaton capacity. Funding may go towards the design, permitting, NEPA review, community benefits activities, construction, and early operation of an

MSC facility. As needed, funding may also support developing or creating access to clean energy and carbon transportation, storage, and/or utilization facilities and resources. Recipients will be expected to execute all four phases of their project. Applicants will be evaluated, in part, based on their Applications and demonstrated readiness for Phases 1 through 4.

All selectees will complete or demonstrate completion of OCED’s Phase 1 (Detailed Project Planning) before being considered and approved to continue into Phase 2 (Selectees or Recipients must complete each project Phase before being considered and approved for the next Phase).

DOE may also offer TA-2 projects funding for early design-phase work (e.g., pre-Front End Engineering and

Design (pre-FEED) study or FEED study) for a large-scale facility as a fast-track towards a potential future

TA-3 award3 to shorten the timeline between initial mid-scale and subsequent large-scale facilities. Each

MSC facility is expected to target a nominal gross capture capacity of between 2,000 and 25,000 TPA.

Individual Applications may propose one facility or may propose multiple facilities, with the requirement that each facility demonstrates a unique DAC technology, and that each facility individually can meet the

Reference Facility4 readiness and scale requirements at the time of application. Applicants will also need to convey a compelling vision for deploying each technology at a scale of at least 100,000 TPA following a successful mid-scale demonstration, whether at the proposed project site or another site.

Operational lifespan may vary based on the MSC facility’s expected role in subsequent large-scale deployments. MSC projects are expected to demonstrate the first commercial application (e.g., integrated with storage or utilization, designed to generate revenue) of a DAC technology at this order-of-magnitude scale.

Projects may propose a variety of carbon offtake applications, including but not limited to, permanent geologic storage, enhanced oil recovery, and utilization in short-lived or long-lived products. Projects that envision their captured CO2 will be vented (“catch-and-release”) will not be considered. Robust Life Cycle

Analysis (LCA) and measurement, reporting, and verification (MRV) will be required. Projects will need to demonstrate potential to maximize CO2 emissions reductions consistent with LCA (i.e., net of emissions associated with process inputs like solvents, sorbents, water, electricity, steam, or other forms of energy).

To be considered for TA-2, the applicant must submit, for each facility proposed, the following Reference

Facility data: 1) at least 1,000 hours of testing data from the Reference Facility, 2) validation that all core processes handling capture, regeneration, and energy integration, when integrated, are not less than TRL 6

(as defined by DOE G 413.3-4A Technology Readiness Assessment Guide, 2011), 3) documentation of not less than 1/25th the nominal gross capture capacity of the proposed MSC facility (e.g., a minimum of 80

TPA Reference Facility for a proposed MSC facility of 2,000 TPA). Applicants who do not yet have complete

Reference Facility data but can demonstrate their Reference Facility is operational and generating the required data will be considered. Applicants must also submit a Community Benefits Plan including analysis of local community support for or opposition to DAC.

Additionally, DOE will assess risk and readiness by examining any proposed changes to the components, design, materials, integration, or scale of the individual unit operations responsible for core capture, regeneration, and energy integration steps, relative to the Reference Facility. DOE expects that a TA-2 project may propose changes to the design and scale of these elements.

3 Such additional funding would not be guaranteed and would be at DOE’s discretion based on project performance, availability of funds, and other portfolio-level factors.

4 Reference Facility means a smaller, operational facility utilizing the proposed technology. Requirements for Reference Facilities differ by Topic

Area.

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Topic Area 3: Large-Scale Commercial DAC Facilities

Through TA-3, DOE seeks to fund Large-Scale Commercial (LSC) DAC facilities as the primary contributors to the creation and expansion of four regional DAC hubs with megaton capacity.

Funding may support the design, permitting, NEPA review, community benefits activities, construction, and early operation of an LSC facility. Funding may also support developing or creating access to clean energy and carbon transportation, storage, and/or utilization facilities and resources. Recipients will be expected to execute all four phases of their project.

Applicants will be evaluated, in part, based on their Applications and demonstrated readiness for Phases 1 through 4. All selectees will complete or demonstrate completion of OCED’s Phase 1 (Detailed Project

Planning) before being considered and approved to continue into Phase 2 (Selectees or Recipients must complete each project Phase before being considered and approved for the next Phase).

Each LSC facility is expected to target a nominal gross capture capacity of at least 25,000 TPA. Individual

Applications may propose one facility or may propose multiple facilities, with the requirement that each facility demonstrates a unique DAC technology, and that each facility individually can meet the Reference

Facility readiness and scale requirements at the time of application. Applicants will also need to convey a compelling vision for subsequent deployments of each technology of at least 10x the proposed facility capacity. LSC projects are expected to demonstrate the scale-up of a DAC technology already deployed commercially (e.g., designed to generate revenue) at smaller scale.

Projects may propose a variety of carbon offtake applications, including but not limited to permanent geologic storage, enhanced oil recovery, and utilization in short-lived or long-lived products. Projects that envision captured CO2 will be vented (“catch-and-release”) will not be considered. Robust Life Cycle

Analysis (LCA) and measurement, reporting, and verification (MRV) will be required. Projects will need to demonstrate potential to maximize CO2 emissions reductions consistent with LCA (i.e., net of emissions associated with process inputs like solvents, sorbents, water, electricity, steam, or other forms of energy).

To be considered for TA-3, the applicant must submit, for each proposed facility, the following Reference

Facility data: 1) operational data including at least 1,000 hours of continuous operations from a smaller commercial facility, 2) validation that all key processes handling capture, regeneration, and energy integration, when integrated, are not less than TRL 7 (as defined by DOE G 413.3-4A Technology Readiness

Assessment Guide, 2011), 3) documentation of not less than 1/25th the nominal gross capture capacity of the proposed LSC facility (e.g., a minimum of 1,000 TPA for a proposed 25,000 TPA facility). Applicants must also submit a Community Benefits Plan including analysis of local community support for or opposition to

DAC.

Additionally, DOE will assess risk and readiness by examining any proposed changes to the components, design, materials, integration, or scale of the individual unit operations responsible for core capture, regeneration, and energy integration steps as well as the scale-up of, or changes to, the integrated system.

DOE expects that a TA-3 project will propose no changes or relatively few and/or independently validated changes to these elements.

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Program Goals and Objectives

This Program aims to support projects that (1) build confidence in the DAC industry through catalyzing commercial scale-up of DAC technologies and related infrastructure, (2) maximize climate impact by proving net-negative emissions goals at commercial scale, and (3) provide the greatest positive benefits to communities.

Through its supported projects, the Program aims to build confidence in the DAC industry by directly addressing several of the key obstacles hindering DAC’s commercial adoption, including high delivered costs, infrastructure and siting challenges, high capital costs due to supply chain underdevelopment and technical risk, and community concerns. This Program aims to enable a stronger understanding of the DAC industry’s potential to reduce atmospheric carbon through its incorporation of rigorous MRV requirements that support assessment of net-negative emissions at commercial scale.

To achieve the greatest positive benefit from this once-in-a-generation investment in infrastructure, it is critical that BIL-funded projects invest in America’s workforce, mitigate potential impacts, and deliver tangible and measurable benefits to impacted communities. Projects that fail to do this may fail to gain social support and may in turn decrease support for future projects.

Award Contribution to Goals and Objectives

TA-1: Projects selected for TA-1 (IAPs) will help to build confidence in the DAC industry by creating access to the support infrastructure that assists in catalyzing commercial scale-up of DAC technologies. TA-1 projects will be expected to achieve this outcome by creating one or more IAPs, each with multiple small-scale or mid-scale DAC tenants hosted at the site and utilizing shared energy and offtake infrastructure that supports multiple tenants advancing to subsequent larger-scale deployments. DOE expects TA-1 IAPs will substantially lower infrastructure, value chain, and project development Adoption Readiness Level (ARL) obstacles for TA-2 projects, FOA-1 technology partners, and other future hub contributors. Ideally, the IAP’s business model is self-sustaining without ongoing operational support from DOE.

TA-2 and TA-3: Projects selected for TA-2 (MSC) and TA-3 (LSC) will build confidence in the DAC industry through catalyzing commercial scale-up of DAC technologies and maximize climate impact by proving net-negative emissions goals at commercial scale. TA-2 and TA-3 projects will be expected to achieve these outcomes through successful design, construction, and operation of mid-scale or large-scale DAC facilities, respectively, and infrastructure to support the DAC facility. TA-2’s mid-scale facilities will serve as the first commercial validation of a new technology and enable subsequent large-scale demonstrations. TA-3’s large-scale facilities will result in the emergence of four megaton DAC hubs and help validate subsequent commercial-scale deployments. TA-2 and TA-3 projects will de-risk technology operations and business models, enabling DAC developers to secure private capital and revenue from the sale of CO2 or DAC carbon removal credits using credible, third-party MRV.

All Topic Areas: This Program aims to provide the greatest positive benefits to communities through selecting projects across all three topic areas that (1) support meaningful community and workforce engagement; (2) invest in America’s workforce; (3) advance diversity, equity, inclusion, and accessibility;

and (4) contribute to the greatest positive benefits to communities while minimizing negative impacts. All supported projects will include community benefits commitments to ensure they support these goals.

Expected Goals, Indicators, Targets, Baseline Data, and

Data Collection

This section details the expected performance goals, indicators, targets, baseline data, data collection, and other outcomes OCED expects recipients to achieve.

Each MSC facility (TA-2) is expected to target a nominal gross capture capacity of between 2,000 and

25,000 TPA. Each LSC facility (TA-3) is expected to target a nominal gross capture capacity of at least

25,000 TPA.

TA-1 (Infrastructure Access Platforms):

At a minimum, by the conclusion of Phase 1, TA-1 Recipients should have completed the activities described below. The continuation decision for the Project to proceed into Phase 2 will be, in part, contingent upon OCED evaluation and acceptance of Recipient’s demonstration of expected progress and performance. Continuation decisions for subsequent phases will be based on progress and performance goals to be further defined during award negotiations.

Site Development Plan: Provide comprehensive plan for developing IAP, including all component parts and access (electrical grid-tie, pipeline connections, etc.) and detailed plot plan. Including:

• Clean Energy Plan: Discuss plans to source clean or low-carbon electricity and/or heat for multiple for multiple DAC providers. For clean or low-carbon electricity sourcing, provide draft details/options that apply to the project’s proposed plans to secure/procure any Power Purchase

Agreements (PPAs), Virtual Power Purchase Agreements (vPPAs), Energy Attribute Credits (EACs) from electricity generators, or to directly source electricity from clean or low carbon assets.

Describe the process by which the DAC facilities would be integrated with this energy infrastructure.

• Storage Field Development Plan (if applicable). Provide Storage Field Development Plan for the selected carbon storage site(s). Plan should: (1) explain the strategy for developing the storage field to maximize its potential utility, status of infrastructure development, and engineering considerations with respect to accepting CO2 from multiple small plants; (2) describe all elements of the proposed storage field facilities including how site would be connected to transport and/or storage network, and establishing logical order and timing for the development of all anticipated facilities, accounting for changing needs for monitoring and use of pore space and changing CO2 delivery rates over time; (3) describe ownership of pore space; and (4) present a cost plan over the proposed life of the project. Detailed site characterization of the selected carbon storage site is required to be completed. Carbon storage facilities should have sufficient capacity to store carbon for at least 12 years of operation.

• UIC Class VI and/or other Permit Application Materials or Offtake Agreement (if applicable).

Provide documentation of the status of Underground Injection Control (UIC) Class VI permit to construct and/or other Federal and state CO2 storage permits required to construct for the selected

CO2 storage site to the appropriate regulatory agency. All Federal and State CO2 storage permits must be submitted during Phase 1. If the permit is not granted at the time of beginning Phase 2, the

Recipient must provide details on the timing when the permit is expected to be granted.

Alternatively, the Recipient must provide details and the status of the offtake agreement.

• Updated Permitting Workflow Overview. Provide permitting workflow overview that identifies the relevant and applicable Federal, state, and local codes, regulations, and permitting requirements anticipated to site, construct, implement, and operate the IAP. Overview should be organized by site location and should identify the Authority Having Jurisdiction (AHJ) and relevant regulatory bodies that may have approval authority during the course of the project. DOE recognizes that the material in this overview document will likely change during the award and, as such, will require that it be revised and updated during project execution. DOE encourages Recipients to conduct outreach to

AHJs and submit any written confirmation from AHJs regarding the project, if received. Frequent communication with AHJs through the life of the project is encouraged as a means of mitigating permitting delays.

• Conversion/Utilization Plan (if applicable): Explain what technologies will convert or utilize the captured CO2. Describe TRLs of these technologies (as defined by DOE G 413.3-4A Technology

Readiness Assessment Guide, 2011). Describe the largest demonstration(s) to date and results of demonstration(s). If captured CO2 will be sold to a third party that is not a project partner, please indicate that and describe the market(s), buyer(s), and end use(s).

• CO2 Conditioning Plan (if applicable): Describe plan for shared balance-of-plant infrastructure at the site (e.g., dehydration, compression, oxygen removal). Describe how the IAP will leverage economies of scale with such equipment across DAC technology providers. Describe how the equipment will be adapted to different flows, timing, and types of CO2. Describe how produced CO2 will be compatible with the intended offtake infrastructure.

• Capacity Evaluation: Describe the minimally acceptable and maximum DAC capacity that the proposed site could support. Describe potential of the proposed site to expand beyond initial expected capacity.

• Any other elements for developing the IAP.

Business Plan: Describe the commercial feasibility of the project, including intended tenant structure, service models, and other relevant monetization including tax credits. Provide updated projections of expected occupancy, tenant revenues, and operating costs over project lifetime, sources and uses of capital including the Award, ability to service debt, if applicable, and substantiation of ability to provide a reasonable return to equity partners or investors.

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Financial Plan: Present a plan to obtain funding for the entire non-DOE share of the total project cost that identifies all sources and uses of project funds. The plan should include a discussion of the overall approach and anticipated schedule to raise required funds for project completion beyond DOE funding.

Recipients should provide a breakdown of all capital sources (e.g., investors and lenders) contemplated, a description of the indicative terms, as available, and a discussion of debt service considerations and credit risks (e.g. interest rate, repayment).

Community Benefits (CB) Plan: Implement meaningful two-way engagement with host communities, Tribes, and workforce, and incorporate feedback into project and future engagement plans. Mechanisms for accountability (e.g., negotiated agreements) should be in development, and partnerships needed to ensure successful community benefits implementation should be in place. Assessments and baselining activities so that project impacts can be measured should be complete. The plan should discuss later phases to ensure benefits are delivered to communities and workers.

Proof of DAC Interest: The project will submit letters of intent from at least one DAC provider expressing interest in working with this site with confirmation that expected climatic, energy, and offtake options would be accessible for their technology and their own business plan.

National Environmental Policy Act (NEPA) Compliance: Provide a complete Environmental Information

Volume (EIV). An EIV describes the proposed project, alternatives to the proposed project, the existing environment at the project location(s), and the potential environmental impacts from the project. Follow

OCED guidance for preparation of an EIV. Additional information about the EIV, DOE’s NEPA requirements, and the role of the applicant in the NEPA process are described in Other Information section of this NOFO.

Environmental Health and Safety (EH&S) Risk Analysis: Provide an EH&S analysis of the proposed site, equipment, utilities integration, and any potential issues with integrating multiple DAC providers on the site. Analysis must include preliminary identification (and estimated quantities) of all potential air and water emissions and solid wastes produced from the site. Include any recommendations from an initial

Process Hazard Analysis (PHA) performed.

TA-2 (Mid-Scale Commercial DAC) and TA-3 (Large-Scale Commercial DAC):

At a minimum, by the conclusion of Phase 1, TA-2 and TA-3 Recipients should have completed the activities described below. The continuation decision for Project to proceed into Phase 2 will be, in part, contingent upon OCED evaluation and acceptance of Recipient’s demonstration of expected progress and performance.

DAC Technology Description(s): Provide a thorough description and data supporting the efficiency of each

DAC technology. The DAC technology and DAC Technology Description, and all associated parameters, should include all processes and requirements to achieve the required carbon dioxide concentration and purity for the proposed downstream transport and storage, or utilization. Provide the current TRL (as defined by DOE G 413.3-4A Technology Readiness Assessment Guide, 2011), Adoption Readiness Level, and manufacturing readiness level and discuss plans for scale-up. Describe key parameters of each DAC technology.

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The description of the technology should include, but is not limited to, the following: (1) overall process flow diagrams (including all major flows, any continuous or intermittently fed make-up chemicals or materials, any blowdown and waste flows, and their respective downstream treatment or destination, any water and waste-water treatment, any significant balance-of-plant processes such as air separation units, cooling (evaporative, air, or otherwise), heat pumps and/or other thermal processes); (2) mass and energy balances including, but not limited to, all material and energy flows crossing the DAC technology battery limits, specific energy consumption, DAC technology product composition (including carbon dioxide concentration, water concentration, concentration of other species), mass and energy balances to include design case, expected climatic variation, and expected range of process performance (e.g., membrane permeability or sorbent degradation between replacement); (3) resource requirements (i.e., power

(including, but not limited to: type (thermal, electrical, etc.), specifications (temperature, latent/sensible heat, AC or DC, voltage, etc.), source(s), amount, load profile, power requirement for proposed project, and power requirement previously demonstrated for the proposed DAC technology), land, water); (4) discussion of the absorption/desorption chemistry and operating cycle for solvent and sorbent systems including sorbent degradation mechanism and impact on the process (as applicable); (5) description of relevant membrane chemistry, including transport mechanism (as applicable); and (6) description of process for DAC technologies that are not sorbent or membrane systems (as applicable).

CO2 Conversion Technology Description(s) (if applicable): Provide a thorough description and data supporting the efficiency of the CO2 conversion technology(ies), including the estimated quantity of CO₂ converted to valuable products and results of the LCA of the proposed system done in accordance to the latest NETL CO2U LCA Guidance. Provide the current TRL (as defined by DOE G 413.3-4A Technology

Readiness Assessment Guide, 2011), Adoption Readiness Level, and manufacturing readiness levels and discuss plans for scale-up. The description of the technology should include, but is not limited to, the following: (1) overall process flow diagrams; (2) mass and energy balances; (3) resource requirements (e.g., feedstocks, energy, land, water); and (4) discussion of the conversion chemistry and operating cycle (as applicable).

Updated Technology Data Tables: Provide updated data tables for each DAC technology and selected CO2 conversion (if applicable) technology. Prepare the data tables based on the experimental data obtained at the largest scale the technology has been validated. Note: The template Technology Data Tables are included in the Other Information section of this NOFO.

Life Cycle Analysis (LCA): Provide an updated LCA for the DAC facility that aligns with the most up-to-date project design utilizing data and best practices from NETL’s CO2U LCA Guidance Toolkit. The LCA will follow technology-specific guidance (described in Section 4 -Technical Volume, Technical Approach for TA-2 and

TA-3). Given the stage of the project, it is expected that there will be significant uncertainty in some portions of the LCA. Uncertainty in the LCA will be bounded through evaluation of multiple scenarios to characterize project sensitivities. To accompany LCA model files, the Recipient will include an LCA narrative summarizing LCA methodology, uncertainties, missing or unknown information, and results.

Techno-Economic Assessment (TEA): Provide a TEA for the proposed DAC Facility. The TEA will be used to validate the assessment of the levelized cost of capture. Recipients must describe their assumptions, rationale, and specific system design boundaries as part of their TEA.

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Clean Energy Plan: Discuss plans to source clean or low-carbon electricity and/or heat for multiple for multiple DAC providers. For clean or low-carbon electricity sourcing, provide draft details/options that apply to the project’s proposed plans to secure/procure any Power Purchase Agreements (PPAs), Virtual

Power Purchase Agreements (vPPAs), Energy Attribute Credits (EACs) from electricity generators, or to directly source electricity from clean or low carbon assets. Describe the process by which the DAC facilities would be integrated with this energy infrastructure.

Project FEED Study: Complete a…