DE-FOA-0002963_Carbon_Capture_Large-Scale_Pilot_Projects_Funding_Opportunity_Announcement_MOD_000002.pdf

OCED T 540.117-01: Funding Opportunity Announcement

Questions about this FOA? Email CCpilotsprogram@hq.doe.gov Problems with OCED eXCHANGE? Email OCED-ExchangeSupport@hq.doe.gov

Include FOA name and number in subject line.

U.S. Department of Energy Office of Clean Energy Demonstrations

Bipartisan Infrastructure Law

Carbon Capture Large-Scale Pilot Projects

Funding Opportunity Announcement Number: DE-FOA-0002963

Type: Mod 000002

Assistance Listing Number: 81.089, Fossil Energy Research and Development 81.255, Clean Energy Demonstrations

Funding Opportunity Announcement Issue Date: 02/23/2023 Submission Deadline for Concept Papers: 04/05/2023, 5:00pm ET Submission Deadline for Applications: 07/07/2023, 5:00pm ET Expected Submission Deadline for Replies to Reviewer Comments: 08/14/2023, 5:00pm ET Expected Date for Pre-Selection Interviews: September 2023 Expected Date for Selection Notifications: September 2023 Expected Timeframe for Award Negotiations: Fall 2023

Modifications

Modifications to this Funding Opportunity Announcement (FOA) are [HIGHLIGHTED] in the body of the FOA and described below.

Mod. No. Date Description of Modification 000001 3/29/2023 • Revised section 1.3 – Topic Areas to clarify that coal, natural gas, or other fossil-derived hydrocarbon feedstock must be used to some extent in the process that produces the gas stream targeted in the large-scale carbon capture pilot project.

• Revised section 1.3.1 – Applications Specifically Not of Interest to delete “only” from the following applications specifically not mailto:CCpilotsprogram@hq.doe.gov mailto:OCED-ExchangeSupport@hq.doe.gov javascript:__doPostBack('ctl00$ctl00$body$homebody$RecentDocuments$C$RecentDocumentsControl$RecentDocumentResults$ctl00$DocumentNumberLink','')

Questions about this FOA? Email Ccpilotsprogram@hq.doe.gov.

Problems with OCED Exchange? Email OCED-ExchangeSupport@hq.doe.gov.

Include FOA name and number in subject line.

of interest: “Applications proposing carbon capture from refining applications (TA-1) only from dedicated hydrogen production (e.g., SMR units).”

• Revised section 4.6.2.13 – Disclosure of Lobbying Activities to clarify that the SF-LLL form is required if any registrants under the Lobbying Disclosure Act of 1995 have made a lobbying contact on behalf of the applicant (including with non-federal funds) with respect to this funding opportunity.

• Revised section 8.1 – Treatment of Application Information to add guidance for company submitters regarding how DOE will address FOIA requests.

000002 5/18/2023 • Submission Deadline for Full Applications has been extended to 5:00 pm ET on 7/7/2023.

mailto:Ccpilotsprogram@hq.doe.gov mailto:OCED-ExchangeSupport@hq.doe.gov i

Table of Contents

Table of Contents ............................................................................................................................................... i

1.0 Funding Opportunity Description

1.1 Background and Context

1.2 Program Purpose

1.3 Topic Areas

1.3.1 Applications Specifically Not of Interest

1.4 Award and Project Management Approach

2.0 Award Information

2.1 Responsiveness Criteria

3.0 Eligibility Information

3.1 Eligible Applicants

3.2 Cost Sharing

3.3 Limitation on Number of Concept Papers and Applications Eligible for Review

4.0 Application and Submission Information

4.1 Application Package

4.2 Application Submission

4.2.1 OCED eXCHANGE

4.2.2 Unique Entity Identifier and System for Award Management

4.2.3 FedConnect

4.2.4 Grants.gov

4.2.5 Electronic Authorization of Applications and Award Documents

4.3 Application Forms

4.4 Submission Dates and Times

4.5 Requirement for Full and Complete Disclosure

4.6 Proposal Content

4.6.1 Concept Paper

4.6.2 Application

4.7 Replies to Reviewers Comments

4.8 Intergovernmental Review

4.9 Funding Restrictions

4.9.1 Allowable Costs

4.9.2 Pre-Award Costs

4.9.3 Buy America Requirements for Infrastructure Projects

4.9.4 Davis-Bacon Act Requirements

4.9.5 Risk Assessment

4.9.6 Human Subjects Research

4.9.7 Performance of Work in the United States (Foreign Work Waiver)

4.9.8 Prohibition related to Foreign Government-Sponsored Talent Recruitment Programs

4.9.9 Affirmative Action and Pay Transparency Requirements

4.9.10 Post Submission Materials and Just-In-Time Documents

4.9.11 Administrative and National Policy Requirements

5.0 Application Review Information

5.1 Compliance Criteria

ii

5.2 Technical Review Criteria

5.2.1 Concept Papers

5.2.2 Applications

5.2.3 Criteria for Replies to Reviewer Comments

5.3 Standards for Application Evaluation

5.4 Evaluation and Administration by Non-Federal Personnel

5.5 Other Selection Factors

5.5.1 Program Policy Factors

5.6 Evaluation and Selection Process

5.6.1 Overview

5.6.2 Pre-Selection Interviews and Site Visits

5.6.3 Pre-Selection Clarification

5.6.4 Recipient Integrity and Performance Matters

5.6.5 Selection

5.6.6 Program Downselect

5.7 Anticipated Notice of Selection and Award Negotiation Dates

6.0 Award Administration Information

6.1 Notifications

6.1.1 Ineligible Submissions

6.1.2 Concept Paper Notifications

6.1.3 Application Notifications

6.1.4 Successful Applicants

6.1.5 Alternate Selection Determinations

6.1.6 Unsuccessful Applicants

6.2 Award Conditions and Reporting

7.0 Questions/Agency Contacts

8.0 Other Information

8.1 Treatment of Application Information

8.2 Retention of Submissions

8.3 Personally Identifiable Information

8.4 Informational Webinar

8.5 Teaming Partner List

8.6 Uniform Commercial Code Financing Statements

8.7 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment

8.8 Title to Subject Inventions

8.9 Government Rights in Subject Inventions

8.10 Rights in Technical Data

8.11 Copyright

8.12 Fraud, Waste, and Abuse

8.13 U.S. Manufacturing Commitments

8.14 Government Right to Reject or Negotiate

8.15 Export Control

8.16 Interim Conflict of Interest Policy for Financial Assistance

Appendix A – Application Requirements Checklist

Appendix B – List of Acronyms

Appendix C – DOE Technology Readiness Level Scale iii

Appendix D – Basis for Techno-Economic Analysis

Appendix E – State-Point Data Tables

Appendix F – Basis for Carbon Capture Technology EH&S Assessment

Appendix G – Life Cycle Analysis

Appendix H – Waiver Requests for Foreign Entity Participation and Foreign Work

1.0 Funding Opportunity Description

1.1 Background and Context

The Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED), in collaboration with the Office of Fossil Energy and Carbon Management (FECM) and National Energy Technology Laboratory (NETL), is issuing this Funding Opportunity Announcement (FOA) for Carbon Capture Large-Scale Pilot Projects. Awards made under this FOA will be funded with funds appropriated by the Infrastructure Investment and Jobs Act, more commonly known as the Bipartisan Infrastructure Law

(BIL).

The BIL is a once-in-a-generation investment in infrastructure, designed to modernize and upgrade American infrastructure to enhance United States competitiveness, drive the creation of good-paying jobs with a free and fair chance to join a union, tackle the climate crisis, and ensure stronger access to economic and other benefits for disadvantaged communities. The BIL appropriates more than $62 billion to DOE to invest in American manufacturing and workers; expand access to energy efficiency and clean energy; deliver reliable, clean, and affordable power to more Americans; and demonstrate and deploy clean energy technologies. As part of and in addition to upgrading and modernizing infrastructure, DOE’s BIL investments will support efforts to build a clean and equitable energy economy that achieves a zero-carbon electricity system by 2035, and to put the United States on a path to achieve net-zero emissions economy-wide by no later than 2050 to benefit all Americans.

OCED’s mission is to deliver clean energy technology demonstration projects at scale in partnership with the private sector to accelerate deployment, market adoption, and the equitable transition to a decarbonized energy system. OCED was established in December 2021 and was first authorized and funded through the BIL. The founding of OCED builds on DOE’s expertise in clean energy research and development and expands DOE’s scope to fill a critical gap on the path to net-zero emissions by 2050.

The funding for this FOA is authorized under Section 41004(a) of the BIL and appropriated by Title III of Division J of BIL. The programmatic authorizing statute is Section 962(b)(2)(B) of the Energy Policy Act of 20051 (42 U.S.C. § 16292(b)(2)(B)). There is a total appropriation of $937 million for fiscal years (FY) 2022 through 2025 for carbon capture large-scale pilot projects designed to accelerate the development, deployment, and commercialization of innovative and transformative technologies that capture carbon2 emissions. Awards made under this FOA are part of a broader government-wide approach to maximize the benefits of the clean energy transition.

1 Section 962 of the Energy Policy Act of 2005 was amended by Section 4002 of Title IV of Division Z (Energy Act of 2020) of the Consolidated Appropriations Act, 2021 (Pub. L. 116-260) to establish the carbon capture technology program that is currently at Section 962 of the Energy Policy Act of 2005 (42 U.S.C. § 16292) and is referred to throughout this FOA.

2 In this FOA, carbon emissions include both carbon monoxide (CO) and carbon dioxide (CO2) emissions.

https://www.congress.gov/bill/117th-congress/house-bill/3684 https://energyjustice.egs.anl.gov/ https://www.energy.gov/articles/doe-fact-sheet-bipartisan-infrastructure-deal-will-deliver-american-workers-families-and-0 https://www.energy.gov/articles/doe-fact-sheet-bipartisan-infrastructure-deal-will-deliver-american-workers-families-and-0 https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad

1.2 Program Purpose

The electricity generation and industrial sectors account for roughly half of all United States (U.S.)

carbon emissions3. Those carbon emissions can be reduced through approaches like electrification or fuel switching in some industries or by transitioning to renewable or nuclear energy in the electricity generation sector. To reach the President's ambitious domestic climate goal of net-zero emissions economy-wide by 2050, the United States will likely have to capture, transport, and permanently sequester significant quantities of carbon dioxide. There is growing scientific consensus that, while the first priority for addressing climate change must be to avoid emissions, carbon capture, utilization and sequestration (CCUS) technologies and permanent sequestration are likely needed to prevent the worst impacts of climate change. CCUS deployment can and should reduce emissions of other kinds of pollution in addition to carbon pollution, protect communities from increases in cumulative pollution, and maintain and create good, union-friendly jobs across the country.

There are different types of point sources of CO2. CCUS can apply to the power sector (e.g., coal- and natural gas-fired power plants), as well as the industrial sector (e.g., cement, steel, paper mills). There are some industrial processes that already capture CO2 as part of normal operations (e.g., natural gas processing or fossil-fuel based hydrogen production) and others that yield a high purity stream of CO2 (e.g., ethanol or nitrogenous fertilizer production). The technologies for CCUS already exist, with a reported 26 commercial-scale projects in operation globally, and an estimated 45 CCUS facilities in operation or in development in the United States today4. Because these systems vary significantly (e.g., a carbon capture project at a natural gas plant in one place versus a carbon capture facility in another), careful attention to the conditions under which specific projects can be implemented, while protecting people and the environment, is critical. The United States has more CCUS activities planned and proposed than any other country. But if the United States is to achieve its climate goals, research suggests that CCUS deployment should increase tenfold over the next decade.

The U.S., where CCUS already plays an important role, is in a unique position to drive innovation and benefit from the economic opportunities that stem from wider national and global deployment of CCUS. Decades of government and private investment in the underlying technologies, favorable geology for secure geological storage of carbon emissions, technical expertise in subsurface injection, and recent increases in funding and tax incentives through the BIL and Inflation Reduction Act (IRA) all cast the U.S. in a role of continued global leadership in carbon management.

However, transformational, more efficient CCUS technologies, including for sectors where carbon emissions are harder and more expensive to capture, will provide more alternatives for decarbonization, reduce costs, and facilitate faster decarbonization. Expanded use of CCUS will also require further expanding the transportation and storage infrastructure to safely store the much larger quantities of CO2 in cases where it cannot be utilized as an input to another process. The maps below illustrate the geographic and sectoral diversity of U.S. carbon emissions across various industrial and power generation activities.

3 https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions 4 CEQ-CCUS-Permitting-Report.pdf (whitehouse.gov) https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions https://www.whitehouse.gov/wp-content/uploads/2021/06/CEQ-CCUS-Permitting-Report.pdf

Figure 1: U.S. industrial point-source emissions by industry5,6

Figure 2: U.S. power point-source emissions by fuel7

5 EPA GHGRP FLIGHT database 2019; additional public information on smaller point source emitters; additional estimated emissions from ethanol facilities in EIA ethanol plant database.

6 It is expected that net-zero carbon emissions by 2050 for the industrial sector will be achieved through implementing a variety of approaches including, but not limited to, increased process energy efficiency, utilization of low or zero carbon fuel, electrification, transformational carbon capture systems, or other carbon dioxide removal (CDR) technologies (e.g., Direct Air Capture (DAC), biomass with carbon capture (BECCS)).

7 EPA GHGRP FLIGHT database 2019; additional public information on smaller point source emitters

While CCUS may not be the first priority solution for all of these sectors,9 further developments in carbon capture technologies will help CCUS become a decarbonization option in more sectors over time. Although certain carbon capture technologies are already well-demonstrated and in deployment in some sectors, a new generation of transformational carbon capture technologies that demonstrate improvements in the efficiency, effectiveness, cost, and environmental performance over existing technologies are now emerging from research and development, alongside efforts to apply existing technologies to new emitting sectors.

Since DOE-FECM R&D efforts for carbon capture technologies began in the early 2000s, improvements in energy and process efficiencies have led to a reduction in both capital and operating costs. Supporting carbon capture large-scale pilot projects under field settings before advancing to commercial-scale demonstration and deployment will benefit entities intending to commercialize and deploy integrated CCS projects. Successful execution of these pilots can help to accelerate CCS deployment to achieve U.S. climate goals while achieving other societal objectives. Also, this FOA further allows development of these technologies in different industrial and hard to decarbonize sectors.

Carbon capture large-scale pilot projects will provide the support needed to test transformational technologies (i.e., novel technologies or applications) at intermediate scale and under relevant conditions in both the power and industrial sector to:

1. De-risk transformational carbon capture technologies8 andthrough meaningful engagement and robust analysis of impacts, risks and benefits such as emissions, water usage, and jobs; and

2. Catalyze significant follow-on investments from the private sector for first-of-a-kind (FOAK) commercial-scale demonstrations on carbon emission sources across the power and industrial sectors.

Through this FOA, DOE makes available up to $820 million of federal funding at a maximum of 70% federal cost share for up to ten (10) carbon capture large-scale pilot projects designed to further the development of transformational technologies that capture carbon emissions from existing coal or natural gas electric generation facilities and existing industrial facilities not purposed for electric generation.

These carbon capture large-scale pilot projects must be integrated with commercial plant operations and conducted in the United States. DOE may issue additional carbon capture large-scale pilot FOAs in the future. Using multiple FOAs can help enable the validation of transformational carbon capture technologies with different maturation timelines in a large-scale pilot project once they reach the appropriate technology readiness level (TRL).

Pursuant to section 962(a)(1) of the Energy Policy Act of 2005 as amended (42 U.S.C. § 16292(a)(1)), the term "large-scale pilot project" means a pilot project that:

8 42 USC 16292

https://uscode.house.gov/view.xhtml?req=(title:42%20section:16292%20edition:prelim)

(A) represents the scale of technology development beyond laboratory development and bench scale testing, but not yet advanced to the point of being tested under real operational conditions at commercial scale;

(B) represents the scale of technology necessary to gain the operational data needed to understand the technical and performance risks of the technology before the application of that technology at commercial scale or in commercial-scale demonstration; and

(C) is large enough-

(i) to validate scaling factors; and

(ii) to demonstrate the interaction between major components so that control philosophies for a new process can be developed and enable the technology to advance from large-scale pilot project application to commercial-scale demonstration or application.

The carbon capture large-scale pilot projects funded under this FOA will generate operational data for verification and validation of the commercial potential of innovative technologies, including data on technology performance, non-CO2 air emissions, process models, life cycle impacts, costs, scaling factors, and community benefits or negative impacts of carbon capture technologies. These pilots will help mitigate risks and aid in commercial adoption as learnings obtained from these pilots are expected to inform subsequent large-scale demonstration or commercial deployment plans.

Applicants have access to Carbon Matchmaker, which may be utilized to facilitate the formation of new project teams for this FOA. Carbon Matchmaker is an online information resource to connect users across the carbon capture, utilization, and storage and carbon dioxide removal supply chains.

DOE is aware of the concerns from environmental justice and climate organizations about how carbon capture projects could negatively affect communities, local environmental quality, and the overall climate mitigation effort if not developed with appropriate safeguards and deployed responsibly in alignment with Federal and state regulations intended to safeguard the environment, public health, and public safety. DOE has a history of investing in research and development to make carbon management technologies safer, more reliable, and more efficient.

With this FOA we continue to support development of carbon management approaches that can enable responsible deployment as we progress towards our climate goals. Carbon capture technology has the potential to reduce emissions of other kinds of pollutants in addition to CO2, protect communities from increases in cumulative pollution, and maintain and create good, high-wage jobs across the country.9

9 https://www.federalregister.gov/documents/2022/02/16/2022-03205/carbon-capture-utilization-and-sequestration-guidance https://www.energy.gov/fecm/carbon-matchmaker https://www.federalregister.gov/documents/2022/02/16/2022-03205/carbon-capture-utilization-and-sequestration-guidance https://www.federalregister.gov/documents/2022/02/16/2022-03205/carbon-capture-utilization-and-sequestration-guidance

This FOA provides an opportunity to gather the data necessary to understand these impacts across a wide variety of technologies and operating conditions needed for commercial deployment.

Therefore, applications to this FOA are required to include a Community Benefits Plan (CBP) tailored to the scope of this FOA, discussing community and labor engagement; investing in the American workforce; Diversity, Equity, Inclusion and Accessibility (DEIA), and the Justice40 Initiative. These requirements will enable and inform future activities with the intent of developing community-informed carbon capture projects that serve the cost-effective, efficient, equitable, and environmentally responsible at-scale expansion of carbon capture operations that enable industry adoption and create quality jobs. Successful CBP activities will be central to the implementation of the carbon capture large-scale pilot projects.

For example, DOE will require pilot projects to track and report on outcomes and outputs related to workforce and environmental impacts -- such as, but not limited to, reporting on changes to non-CO2 pollution and water usage. Prior to beginning construction, as part of the National Environmental Policy Act (NEPA) process, DOE will require projects to complete an in-depth environmental pollution impact assessment (including cumulative pollution impacts) of any installation of large-scale pilot and balance of plant systems at the host site. The results of the completed assessment, as well as plans for instrumentation, data collection, and analysis to elucidate potential community impacts of commercial-scale carbon capture projects, will inform Go/No-Go and downselect decisions that occur between and within phases.

While the scale and scope of carbon capture large-scale pilot projects is dependent on the type of technology being deployed, applicants to this FOA should have already validated technical success of the integrated components at the small-pilot scale. Specifically, the FOA will focus on carbon capture technologies that have completed a TRL of at least 5, preferably 6, for the proposed large-scale pilot project at the time of application and have completed a successful validation of an integrated small-pilot scale prototype capturing a minimum of 1,000 tonne CO2/yr for the proposed process or a process having a similar composition, impurities/contaminant profile, temperature, and pressure. It is expected that, once validated, the technologies funded under this FOA will achieve at least TRL 7, and can be readily scaled up to FOAK commercial demonstrations in electricity generation or industrial sectors. TRL definitions are available in Appendix C.

Applicants must demonstrate their ability to achieve at least 90% carbon capture efficiency and CO2 product purity of at least 95% by end of the project period. The funding under this large-scale pilot projects FOA is focused on developing carbon capture technologies towards market liftoff. However, the applicants are strongly encouraged to look for opportunities to securely geologically store or utilize or monetize the captured carbon. Funding for those activities will be outside the scope for this FOA. Detailed technical descriptions of the specific Topic Areas are provided in Section 1.3.

Section 41004 of the BIL authorizes funding for both carbon capture large-scale pilot projects and carbon capture demonstration projects. DOE is issuing this carbon capture large-scale pilot projects FOA (FOA Number: DE-FOA-0002963) and a carbon capture demonstration projects program FOA (FOA Number: DE-FOA-0002962), available on OCED Exchange.

https://oced-exchange.energy.gov/Default.aspx

In general, technologies of interest for the carbon capture large-scale pilot projects FOA are less technologically mature (TRL 5-7) than technologies of interest for the carbon capture demonstration projects FOA (TRL 7-8). The large-scale pilot projects FOA focuses on technologies that have completed, at the time of application, an integrated small-scale pilot prototype for the proposed process or a process having a similar composition, impurities/contaminants, temperature, and pressure and will validate scaling factors to enable the large-scale pilot project to proceed to commercial-scale demonstration or commercial-scale application after the large-scale pilot project is complete.

While the present FOA focuses on transformational large-scale pilot projects to advance carbon capture technologies only, the carbon capture demonstration projects FOA instead focuses on transformational commercial scale, integrated demonstration projects designed to further advance the development, deployment, and commercialization of technologies to capture, transport, and securely store carbon emissions from both industrial and electric generation facilities.

Organizations must decide which of these FOAs to apply to based on the TRL of the proposed project and other application requirements stated in the FOAs. DOE will not select the same project for both this FOA and the above-referenced carbon capture demonstration projects Program FOA or projects that are interdependent between these two FOAs.

1.3 Topic Areas

There are two Topic Areas (TAs) in this FOA:

• Carbon Capture Large-Scale Pilot Projects at Industrial Facilities Not Purposed for Electric Generation (TA-1); and

• Carbon Capture Large-Scale Pilot Projects at Coal or Natural Gas Electric Generation Facilities (TA-2).

The overall objective of a project under TA-1 is to test a transformational carbon capture technology that (i) separates carbon emissions from a stream at an industrial facility and (ii) has the ability to validate at least 90% carbon capture efficiency and 95% CO2 purity under real exhaust conditions. DOE will preference applications that propose transformational technologies with documented potential to achieve greater than 90% carbon capture efficiency during the proposed large-scale pilot project. Note that coal, natural gas, or other fossil-derived hydrocarbon feedstock must be used to some extent in the process that produces the gas stream targeted in the large-scale carbon capture pilot project.

The industrial sectors of interest for TA-1 include but are not limited to: (i) chemical production (e.g., petrochemicals) excluding ethanol and hydrogen production, (ii) mineral production (e.g., cement, lime, and glass), (iii) pulp and paper production, (iv) iron and steel production, and (v) refining (e.g., catalytic cracker, hydrocracking, process furnaces, etc.). Applications proposing carbon capture in natural gas processing facilities are not of interest.

Large-scale pilot projects under TA-1 are pilot facilities with a design capacity to capture a recommended minimum of 75,000 tonnes CO2/yr from a stream at an existing domestic industrial facility not purposed for electric generation.

Applications are preferred that propose carbon capture from unit operations from industrial facilities where it is known to be difficult to decarbonize and require further technology development.

If a pilot scale of less than 75,000 tonnes CO2/yr is proposed AND the projected commercial scale is more than 10X , the applicant must clearly explain why a future scale-up from pilot to commercial scale (with no intervening scale-ups) could be done with acceptable risks. Likewise, if the proposed pilot scale is more than 10X greater than the largest scale at which the proposed carbon capture system has been previously tested and validated, the applicant must clearly explain why scaling up directly to the pilot scale (with no intervening scale-ups) could be done with acceptable risks.

The overall objective of a project under TA-2 is to test a transformational carbon capture technology that (i) separates carbon emissions from a flue gas stream at an electric generation facility and (ii) has the ability to validate at least 90% carbon capture efficiency and 95% CO2 purity under real flue gas conditions. Large-scale pilot projects under TA-2 are pilot projects with the documented potential to achieve a 90% carbon capture efficiency from a recommended minimum 25 MWe slipstream at an existing domestic coal electric generation or natural gas (NG) electric generation facility. NG electric generation facilities include both simple cycle and combined cycle (NGCC) plants, combined heat and power plants, and steam methane reformers that produce hydrogen from natural gas for use in the production of electric energy.10

If a pilot scale of less than 25 MWe slipstream is proposed AND the projected commercial scale is more than 10X , the applicant must clearly explain why a future scale-up from pilot to commercial scale (with no intervening scale-ups) could be done with acceptable technical risks. Likewise, if the proposed pilot scale is more than 10X greater than the largest scale at which the proposed carbon capture system has been previously tested and validated, the applicant must clearly explain why scaling up directly to the pilot scale (with no intervening scale-ups) could be done with acceptable risks.

At the time of the application, carbon capture technologies proposed for both TA-1 and TA-2 under this FOA are expected to (i) have achieved TRL 5, preferably 6, for the proposed process and (ii) have completed a successful validation of an integrated small-pilot scale prototype capturing a minimum of 1,000 tonnes CO2/yr for the proposed process or a process having a similar composition, impurities/contaminant profile, temperature, and pressure.

DOE will preference applications that propose carbon capture technologies that have already achieved TRL 6. It is expected that the projects, if awarded, will achieve TRL 7 at the completion of the project performance period. TRL definitions are provided in Appendix C.

10 Section 962(a)(3) of the Energy Policy Act of 2005 as amended (42 U.S.C. § 16292(a)(3)).

Regarding the DOE definition of TRL 7 included in Appendix C, note that as a technology is developed, multiple prototypes of increasing scales may be tested and validated, which often conclude with a prototype with a scale that is approaching, but could still be less than, the anticipated scale of the commercial application.

For the purpose of this FOA, a prototype full-scale system corresponds to a prototype that has sufficient scale to: a) gain the operational data needed to understand the technical and performance risks of the technology before the application of that technology at commercial scale or in commercial-scale demonstration; b) validate scaling factors; and c) demonstrate the interaction between major components so that control philosophies for a new process can be developed and enable the technology to advance from large-scale pilot project application to commercial-scale demonstration or application.

For both TA-1 and TA-2, Carbon Capture Large-Scale Pilot Projects under this FOA are expected to:

i. Have a design life of around 5 years, with plans to decommission or operate after the award period is completed,

ii. Achieve at least 90% capture efficiency,

iii. Achieve at least 95% purity in the product oxides stream,

iv. Complete at least one (1) year of large-scale pilot testing of a carbon capture technology under actual exhaust conditions (e.g., normal steady-state and flexible operations) covering the full spectrum of performance conditions, parametric variable studies, meeting key technical performance targets, and collect required data to quantify other project benefits or negative impacts,

v. Achieve at least 2,000 hours of continuous operation under stable conditions at performance targets that can enable validation of commercial scale process using Techno-economic Analysis (TEA), Life Cycle Analysis (LCA) models that are informed with data from the testing,

vi. Collect and report the inlet and outlet criteria pollutants (e.g., NOx, SOx, PMs) and technology related emissions (e.g., solvent/sorbent losses and their degradation by-products such as potential formation of nitrosamines) during the large-scale pilot testing to assess the co-benefit emissions reduction of installing carbon capture technology,

vii. Develop and utilize first-principles based, multi-scale process and scale-up models to guide pilot scale experiments and parametric variable studies to reduce the technical risks in scale-up and further deployment,

viii. Collect data sufficient to validate scaling factors, process models and demonstrate major component interactions to support future technology scale up and application in a variety of potential commercial environments,

ix. Demonstrate significant progress towards commercial applications via final TEA and LCA analyses that incorporate large-scale pilot data and can support scaling to commercial scale demonstration or commercial applications, and

x. Collect data to demonstrate sufficient understanding of surrounding community and workforce impacts of the pilot project construction, operations, and decommissioning.

1.3.1 Applications Specifically Not of Interest

The following applications are not of interest under this FOA:

• Applications proposing lab/bench-scale research and development (R&D), and small-scale pilot-scale activities with less than 1,000 tonne/yr of CO2 capture capacity;

• Applications proposing laboratory or bench-scale testing to develop carbon capture material composition(s), or materials system(s) (e.g., membranes modules);

• Applications proposing CO2 capture materials screening (computational or experimental) of novel sorbents, solvents, membrane or electrochemical materials;

• Applications proposing R&D of individual process steps, materials, or chemistries (e.g., solvent reclamation, carbon capture material manufacturing, monoliths, carbon oxides compression technologies) rather than a complete and fully integrated carbon capture large-scale pilot system;

• Applications to advance the maturation of carbon storage technologies;

• Applications to advance the maturation of carbon oxides conversion technologies;

• Applications to advance the maturation of technologies to increase carbon oxides concentration in the flue gas (e.g., exhaust gas recirculation), other than engineering analysis;

• Applications to utilize algae-based carbon capture technologies;

• Applications to advance the maturation of direct air capture technologies;

• Applications proposing carbon capture large-scale pilot projects at hydrogen production, ethanol production and natural gas processing facilities (TA-1).

• Applications proposing carbon capture from refining applications (TA-1) from dedicated hydrogen production (e.g., SMR units).

1.4 Award and Project Management Approach

Awards selected under this FOA for carbon capture large-scale pilot projects will adhere to a four-phased structure for managing scope, schedule, deliverables, and budget, with a competitive (down)-selection ( “downselect”) between Phases 1 and 2:

Phase 1: Detailed Plan and Front-End Engineering Design (FEED) Studies (18 months);

Phase 2: Project Development, Permitting, and Financing (up to 12 months);

Phase 3: Procurement, Construction, and Integration (up to 24 months); and Phase 4: Ramp-Up and Pilot Operations (up to 24 months).

Table 1 shows an example of the expected activities and deliverables for each phase. Items listed under the “Application” phase are indicative of the type and scope of activities DOE will require applicants to submit for consideration of Phase 1 funding. Items listed under Phases 1-4 are indicative of the type and scope of activities applicants should plan to execute in each phase if continued into that phase of funding. These activities will also be further defined during award negotiations and subsequent negotiations between phases. DOE review and evaluation of deliverables reflecting activities in each phase will inform downselect and Go/No-Go decisions that occur between and within phases.

Table 1. Carbon Capture Large-Scale Pilots: Example Phase Activities and Deliverables

Application Phase Phase 1: Detailed Plan & FEED Studies (18 months)

Phase 2: Project Development, Permitting, and Financing

(Up to 12 months)

Phase 3:

Procurement, Construction, and Integration

(Up to 24 months)

Phase 4: Ramp-up & Pilot Operations

(Up to 24 months)

Business Development Management

• Financial Plan (FP)

• Business Plan (BP) including preliminary host site selection

• Project Management Plan

(PMP)

• Final Site Proposal

• Updated PMP, BP, FP for

Phase 2-4

• Feedstock, Supply Chain

Assessment

• Intellectual Property

Management Plan

• Teaming & feedstock agreements

• Sites access secured

• Confirmed project financing, including contingency funding

• PMP and FP for Phase 3-4

• Labor agreements

• Regular progress/status reporting for all agreements

• Regular financial status reports

• Updated BP, PMP, FP, teaming, labor agreements & feedstock agreements

• Future plans for commercial deployment

Engineering, Procurement, Construction & Operations

• Technology Description & TRL Assessment

• Scale Up Pathway Description

• Conceptual Engineering Designs

• TPC Estimate

• Level 2 Phase 1 Schedule

• Level 1 Integrated Project

Schedule (IPS)

• Scale up Analysis &

Explanation

• Engineering & Design documents (30%)(2)

• Class 3 Cost Estimate(1)

• Level 3 Phase 2 Schedule

• Level 2 full project IPS

• CC & BOP:

Engineering & design (90%)(1) and Class 1

TPC

• Level 3 full project IPS

• Level 4 schedules as needed

• Progress execution reporting

• Integrated project completion testing

• Updated TPC

• Procurement, installation, and commissioning

• Preliminary design validation run(s)

• Updated Level 3 IPS, Level 4 schedules as needed

• Regular operation status reporting

• Validated performance model

• Final TPC

• Plans for Pilot disposition or decommissioning, if applicable

Safety, Security & Regulatory Requirements

• Permitting workflow overview

• Initial Environmental Health & Safety (EH&S) Assessment

• Assessment of potential cybersecurity threats or vulnerabilities

• Environmental Information Volume

(EIV)

• Updated EH&S Assessment

• Cybersecurity Plan

• Initial safety plan

• Execution ready safety plans

• Final Cybersecurity Plan

• Updated EH&S Assessment

• All permits for construction

• NEPA complete

• All permits for execution

• Safety & security incident reporting & audits

• Ongoing permits, safety & security reporting

Risk Analysis & Mitigation (as Part of PMP)

• Preliminary Risk Management Plan (RMP)

• Preliminary Risk Register

• Updated RMP

• Update Risk Register

• Quantitative RMP

• Update Risk Register to inform contingency funds

• Assessment and mitigation of construction project risks

• Quantitative RMP as needed

• Update Risk Register

• Tech risk updated for operations

• Ongoing risk reporting

• Failure root cause analysis and abatement implementation

Technical Data & Analysis

• Data tables for carbon capture technology validated in integrated pilot scale system at min 1000 tonne CO2/yr

• Preliminary process model, TEA, LCA

• Revised/Updated TEA and LCA analyses including commercial application scenario analyses

• Process and scale-up models

• Technical Verification and Validation (V&V) plan

• Process and scale-up models

• V&V data collection & analysis

• Updated TEA and LCAs

• Process and scale-up models

• Ongoing data collection

• LCA incorporating operation data

• Process and scale-up models

• TEA incorporating operation data

Community Benefits

• Community Benefits Plan, including:

• Community & Labor Engagement; Investing in

• Implement Phase 1 scope of CBP

• Update CBP for Phases 2-4 based on Phase 1 activities

• Implement Phase 2 scope of CBP

• Update CBP for Phases 3-4 based on Phase 2 activities

• Implement Phase 3 scope of CBP

• Update CBP for Phase 4 based on Phase 3 activities

• Implement Phase 4 scope of CBP

• Update CBP based on activities and findings

American Workforce;

DEIA; Justice40 Initiative from ramp-up and pilot-scale operations

(1)Cost Estimate Maturity as referenced in Table 4 and DOE’s Cost Estimating Guide; (2)Maturity level project definition as referenced in Table 4 and DOE’s Cost Estimating Guide

This phased approach is designed to guide projects through the project development process incrementally and allow DOE to evaluate project merit and progress at each phase transition to ensure broad goals remain achievable. Each phase is structured to ensure that projects meet a standard level of maturity, employ a robust execution approach, and that technical and non-technical project risks are adequately and appropriately managed throughout DOE’s award.

Applications to this FOA will be considered only for Phase 1 funding. However, DOE will evaluate projects against their detailed Phase 1 proposals as well as their plans to carry out the subsequent phases, the nature of the proposed transformational technology11 and the potential viability of its commercial adoption beyond the carbon capture large-scale pilot project. The requirements for Phases 2–4, including the competitive downselect criteria, will be contained in Phase 1 awards.

Phase 1 – Detailed Plan and Front-End Engineering Design (FEED) Studies

Phase 1 activities will focus on completing specific details about the overall carbon capture large-scale pilot project plan and analysis to refine projections submitted as part of the proposal. These activities must provide assurance to DOE that the overall plan is technologically, environmentally, financially, and legally viable, with adequate plans to assess community and workforce impacts and engage relevant stakeholders. FEED Studies and construction plans for the proposed large-scale pilot projects will be completed in Phase 1 in accordance with the award terms.

Furthermore, the Phase 1 projects will need to update the Project Management Plan (PMP), preliminary test plans, the Risk Management Plan (RMP), the Intellectual Property Management Plan (IPMP), the financial plan for the phases 2-4 efforts and finalize the site selection for large-scale pilot project. The Project Management Plan should also identify if there are any critical materials or supply chain risks in their technologies and the plans to overcome them in the project. Phase 1 recipients will also need to complete and submit an Environmental Information Volume (EIV).

Phase 1 should also include a continuation of analysis activities to refine and update Life Cycle Analysis (LCA) and techno-economic analysis (TEA) data and analysis provided in the application, as well an updated Environmental Health and Safety (EH&S) assessment consistent with Appendix F.

In addition to project-specific analyses, DOE may require recipients to complete scenario analyses across a range of commercial applications to support assessment of the potential impact the large-scale pilot project may have on the broader economy. In addition to updating engineering, technology, and business plans, Recipients will also update and begin implementing Community

11 Section 962(a)(5) of the Energy Policy Act of 2005 as amended (42 U.S.C. § 16292(a)(5)).

https://www.directives.doe.gov/directives-documents/400-series/0413.3-EGuide-21A

Benefits Plan activities to advance the assessment of potential impacts to the human environment and begin producing required safety, security, and regulatory documents.

If an applicant has already conducted or is currently conducting activities required under Phase 1 of this FOA, the status of such activities must be clearly described in the Application. DOE will not fund completed or redundant work. Applicants should propose only new work that falls under Phase 1 activities. DOE expects Phase 1 activities to take 18 months including the competitive downselect process for all awards selected from this FOA.

Phase 2 – Project Development, Permitting, and Financing

Phase 2 encompasses advanced planning activities. Following Phase 1 downselect, successful applicants will finalize their project development plans, commercial agreements, financial structure, and complete the necessary permitting and approval activities required to begin construction. By the end of Phase 2, engineering designs should be sufficiently mature to support completion and execution of relevant procurement or construction contracts and overall commencement of major project execution tasks.

Long-lead procurement activities may be started in Phase 2, with prior DOE approval. If necessary, third-party financing agreements should be completed. Risk management plans should be revised and updated to reflect progress made and risks mitigated as well as new or emerging risks and corresponding management plans.

By the end of Phase 2, safety and security plans should be finalized and execution ready. All necessary permits and approvals should be in place to prepare for construction, including completion of required NEPA reviews. Relevant LCA and TEA analyses should be completed to DOE expectations and corresponding verification and validation (V&V) plans should be in place.

Relevant plans for community and labor engagement and partnerships should be finalized and implemented.

Evidence of a contingency reserve is required prior to beginning Phase 3 activities. More information on contingency funding can be found in Section 2.0.

Phase 3 – Procurement, Construction, and Integration

Phase 3 activities will focus on implementation. DOE expects this phase to take up to 24 months and to be the most cost intensive. Recipients will employ industry standard project management tools and will be required to provide regular status updates and reports.

Plans developed in the preceding phases will be revised and updated as appropriate to reflect actual performance. Previously and newly identified risks will be tracked, actively managed, and regularly reported to DOE. Reporting frequencies and content requirements will be unique to each award and negotiated prior to Phase 3 commencement.

While recipients will manage implementation, DOE will closely monitor progress and evaluate it against the plans developed through Phase 2. DOE and/or its third-party representatives will visit the site(s) regularly to verify progress and collect data, consistent with the established reporting requirements and substantial involvement.

Phase 3 activities may vary significantly for each award as there will be varying amounts of construction and retrofitting. Recipients should propose a funding level that is appropriate for the scale of the technologies and infrastructure being installed and constructed, within the limits outlined in Section 2.0.

Phase 4 – Ramp Up and Pilot Operations

In Phase 4, recipients will transition to pilot operations. Phase 4 activities will focus on executing the integrated pilot system performance and data collection plans. By the end of Phase 4, each project will have demonstrated integrated, large-scale pilot system operations running various parametric tests over an extended period (at least 1 year). The pilot should achieve a minimum of 2,000 continuous operational hours, consistent with the operating performance of the underlying asset. Operational data should cover the full range of anticipated operating conditions and confirm key technical performance targets. Additional data collection may be necessary to adequately understand the surrounding community impacts resulting from the large-scale pilot operations and potential impacts of commercial-scale carbon capture.

Recipients must propose a funding level that is appropriate for the large-scale pilot project ramp-up and operations using DOE funding within the limits outlined in Section 2.0. A contingency reserve will also be required for Phase 4 to account for operations and also for decommissioning.

At the completion of Phase 4 activities, DOE will require the recipient to submit either a plan for the decommissioning and disposition of the large-scale pilot facilities or a plan for its continued use. Costs associated with decommissioning and disposition or its continued use are not part of the project cost.

Transitions between Phases (Phases 2-4)

Upon Phase 1 award, DOE will only commit to funding Phase 1 activities. Additional funding for subsequent phases (Phases 2-4) will require successful completion of a competitive downselect after Phase 1 and Go/No-Go reviews at the end of Phase 2 and Phase 3. During the competitive downselect process following Phase 1, each recipient will be evaluated against a defined set of downselect Merit Review Criteria (MRC). These downselect MRC will be communicated to recipients during the Phase 1 award negotiation process and documented in the final agreements. Successful projects will receive Phase 2 funding.

Starting with Phase 2, transitions between budget periods or phases will be evaluated through a Go/No-Go decision format in which the projects are evaluated against the progress they have made against their plans and the agreed upon Go/No-Go criteria. This may include a requirement to submit a standardized set of data to provide quantitative and qualitative insight on metrics spanning the technological, environmental, economic, market, community benefits, and other components of the project’s analysis activities. DOE may also require the negotiation of additional Go/No-Go decision points within any phase (i.e., phases may include one or more budget periods with Go/No-Go points at the end of each budget period).

Applicants must propose quantitative Go/No-Go criteria for each budget period as part of the Workplan.