DE-FOA-0003473 - Point Source NOFO.pdf

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

U.S. Department of Energy

Office of Clean Energy Demonstrations

Point Source Carbon Capture Large-Scale Pilots, Commercial Demonstrations, and Networked

Demonstration Commercialization

Funding Opportunity Number: DE-FOA-0003473

Carbon Capture Demonstration Projects Program

Topic Area 1 and Topic Area 3

Concept Papers due:

March 1, 2025, 5:00 pm ET

Application due:

July 1, 2025, 5:00 pm ET

Carbon Capture Large-Scale Pilot Projects Program

Topic Area 2

Concept Papers due:

March 1, 2025, 5:00 pm ET

Application due:

July 1, 2025, 5:00 pm ET

Questions about this NOFO? Email cc-oced@hq.doe.gov.

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

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

NEPA Compliance

Subrecipients and Contractors

Step 6: Contacts and Support Agency Contacts

Helpful Websites

Acronyms

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. Registration 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 register with Grants.gov. Doing so requires a Login.gov registration.

Apply by Concept Papers are due on March 1, 2025, 5:00 pm Eastern Time.

Applications are due by July 1, 2025, 5:00 pm Eastern Time.

https://sam.gov/content/home https://oced-exchange.energy.gov/ https://www.fedconnect.net/FedConnect/Default.htm https://www.grants.gov/forms/forms-repository/sf-424-family

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: $1,300,000,000 beginning in

FY 2026

Expected number and type of awards: Up to 11 total cooperative agreements

Topic Area 1: 1–3 awards, each $175M – $400M, $750M max

Topic Area 2: 1–5 awards, each $75M – $135M, $450M max

Topic Area 3: 1–3 awards, each $20M – $30M, $100M max

Expected dollar amount of individual awards: Varies, based on Topic Area

Expected award project period: The expected project period of performance is 8–10 years; the scope of the proposed project would determine the specific project period of performance within the project period.

Depending on the number and quality of applications, DOE may not award the full NOFO funding amount.

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 cc-oced@hq.doe.gov.

KEY FACTS

Funding Opportunity Title:

Point Source Carbon Capture Large- Scale Pilots, Commercial Demonstrations, and Networked Demonstration Commercialization

Funding Opportunity Number:

DE-FOA-0003473

Assistance Listing:

81.089; 81.255

KEY DATES

Concept Paper Deadline:

March 1, 2025, 5:00 pm ET

Application Deadline:

July 1, 2025, 5:00 pm ET

Anticipated Selection Date:

November 1, 2025, 5:00 pm ET

Anticipated Time Frame for Award Negotiations

November 2025 – March 2026

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

Executive Summary The Department of Energy (DOE) estimates that reaching successful liftoff by 2050 will require capturing and storing 400 million to 1.8 billion tons0F

1 of carbon dioxide (CO2) annually by 2050. Commercial demonstration of advanced carbon capture technologies, integrated with reliable transportation and storage infrastructure, is necessary for the widespread deployment of these technologies.

DOE’s Office of Clean Energy Demonstrations (OCED) is issuing this Notice of Funding Opportunity (NOFO), in collaboration with the Office of Fossil Energy and Carbon Management (FECM) and National Energy Technology Laboratory (NETL), for integrated carbon capture, utilization, and storage (CCUS) projects that demonstrate substantial improvements in the efficiency, effectiveness, cost, and environmental performance of carbon capture technologies for power, industrial, and other commercial applications.

The overarching goal of this NOFO is to unlock a wave of follow-on investment in low-carbon power and low-carbon industrial products by increasing the capital flow to sectors where it is already occurring and by expanding the CCUS market to additional power, industrial, and commercial applications. Awards made under this NOFO 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 designed to modernize and upgrade American infrastructure to enhance United States competitiveness, to drive the creation of good-paying jobs, to tackle the climate crisis, and to ensure stronger access to economic, environmental, and other benefits for disadvantaged communities. Furthermore, these investments will support efforts to build a clean and equitable energy economy that achieves reduced emissions economy-wide by no later than 2050 and a fifty percent reduction from 2005 levels in economy-wide net greenhouse gas (GHG) pollution by 2030. 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.

The BIL will invest up to $2.537 billion to fund domestic CCUS demonstration and commercial-scale projects that further the development, deployment, and commercialization of technologies to capture and geologically store CO2 emissions. In addition, the BIL has a total appropriation of $937 million for fiscal years (FY) 2022 through 2025 for large-scale pilot projects that accelerate the development, deployment, and commercialization of innovative and transformative carbon capture technologies.

This NOFO makes available up to $1,300,000,000 for approximately 11 projects at maximum Federal cost shares ranging from 50% to 80%, depending on the Topic Area and Phase of the project. The NOFO is divided into three Topic Areas based on the technology readiness level (TRL) and scope of the proposed project. DOE will select projects that seek to demonstrate the following, based on the chosen Topic Area:

• Topic Area 1 – The technical and commercial viability of established carbon capture technologies (TRL >7) in both new applications and at commercial scale.

• Topic Area 2 – First-of-a-kind transformational technologies (TRL 5–6) at the large pilot scale.

• Topic Area 3 – Region-specific carbon management networks with multiple emitters to reduce offtake uncertainty and increase emitter access to storage facilities.

1 Carbon Management – Pathways to Commercial Liftoff https://liftoff.energy.gov/carbon-management/

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

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

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) are eligible to apply for funding as a subrecipient but are not eligible to apply as a recipient. However, NETL is not eligible for award under this announcement. 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.”

2 “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.

https://uscode.house.gov/view.xhtml?req=(title:25%20section:5304%20edition:prelim) https://uscode.house.gov/statutes/pl/92/203.pdf#:%7E:text=688%20PUBLIC%20LAW%2092-203-DEC.%2018%2C%201971%20%5B85%20STAT.,and%20for%20other%20purposes.%20Alaska%20Native%20Claims%20Settlement https://uscode.house.gov/view.xhtml?req=(title:43%20section:1601%20edition:prelim)

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’s (OFAC) 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.

In Topic Area 3, emitters are required to be subrecipients, and pipeline and storage companies are required to be either prime recipients or subrecipients.

Eligibility for Topic Area 3 requires a multi-party application consisting of at least one entity that is developing, owns, or operates CO2 transportation and/or storage facilities. Applications that do not include such entities will be deemed non-responsive.

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 Waiver Requests section of this NOFO and 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. The applicant does not have the right to appeal DOE’s decision concerning a waiver request.

Prime recipients and subrecipients must be legally formed in the United States, have majority domestic ownership and control, and have a physical location for business operations in the United States.

Entities that are organized, chartered, or incorporated (or otherwise formed) under the laws of the United States or a particular state or territory of the United States and have a physical location for business operations in the United States are eligible to apply for funding as a recipient or subrecipient.

https://sanctionslist.ofac.treas.gov/Home/SdnList https://www.energy.gov/oced/apply-funding-opportunities#requireddocs https://www.energy.gov/oced/award-negotiations#request

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.

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.

Cost Sharing The non-Federal cost share must be at least 50% of the total project costs for demonstration projects in Topic Areas 1 and 3, and 30% in Topic Area 2 (Phases 1–4). The cost share must be at least 20% of total project costs for Topic Area 2 Phase 0. Each Budget Period of the project must also meet the aforementioned specific cost share requirements 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.2F

3 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 or to otherwise support the same scope that is proposed under the Carbon Capture Demonstrations Projects Program and the Carbon Capture Large-Scale Pilot Projects Program.

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.

3 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.

https://www.energy.gov/oced/apply-funding-opportunities#budget

Program Description

Purpose In 2023, the electricity generation and industrial sectors accounted for nearly half of all United States (U.S.)

CO2 emissions.3F

4 Those CO2 emissions can be reduced by multiple and concurrent pathways including carbon capture, electrification, or fuel switching (including hydrogen and renewable fuels) in some industries, along with increasing the share of carbon-free electricity generation in the electricity sector. To reach the United States Government’s ambitious domestic climate goal of reduced greenhouse gas emissions economy-wide by 2050, the U.S. will have to capture, transport, and sequester significant quantities of CO2. There is growing scientific consensus4F

5 that, while the priority for addressing climate change must be to avoid emissions, CCUS technologies and permanent sequestration are essential to prevent the worst impacts of climate change.

Point-source carbon capture is a necessary decarbonization solution for the U.S. to build a clean and equitable energy economy that achieves a zero-carbon electricity system by 2035, and to put the U.S. on a path to achieve reduced emissions economy-wide by no later than 2050. Despite growing interest in carbon capture solutions, the pace of private investments has been slowing due to several key factors including:

• Lack of operational data for a wide variety of technologies and applications at scale, limiting investments – “Technology valley of death”

• Limited CCUS solutions able to economically capture CO2 from a wide variety of flue gas streams given current market incentive structures – “Commercial valley of death”

• Slow pace of project development due to a “chicken-and-egg” problem in which both emitters and CO2 transport, and storage providers hesitate to develop a project until the other party has committed

There are different types of CO2 point sources. 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). However, per the International Energy Agency5F

6, as of March 2024, there are only approximately 50 operational projects globally (approximately 20 in the U.S.) that entail either capture, storage, and transportation or capture, and utilization on the entire value chain.

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 needed in parallel with efforts to apply existing technologies to new emitting sectors.

4 U.S. Energy Information Administration – EIA – Independent Statistics and Analysis 5 Energy Technology Perspectives 2020 – Analysis – IEA 6 CCUS Projects Explorer – Data Tools – International Energy Agency https://www.eia.gov/environment/emissions/carbon/ https://www.iea.org/reports/energy-technology-perspectives-2020 https://www.iea.org/data-and-statistics/data-tools/ccus-projects-explorer

Transformational solutions (either technical or financial), including for sectors where carbon emissions are harder and more expensive to capture, will provide more opportunities for decarbonization, reduce costs, and facilitate faster liftoff. Expanded use of CCUS will also require further expansion of the transportation and storage infrastructure to safely store the much larger quantities of CO2.

This NOFO is authorized under Section 962 of the Energy Policy Act of 2005 as amended by Section 41004 of the BIL, codified at 42 U.S.C. § 16292.

Based on the advancements necessary for liftoff, identified above, this NOFO is designed to:

• Drive initial market adoption today by supporting demonstrations of successful CCUS projects in key areas to inform future investment;

• Ensure greater market adoption tomorrow by both improving the economics of CCUS to incorporate a wider array of emitters and help ensure that CCUS infrastructure develops economically; and

• Demonstrate responsible and effective deployment of CCUS, including through community and workforce engagement, to encourage uptake and drive market adoption.

This NOFO makes available up to $1,300,000,000 for approximately 11 projects at maximum Federal cost shares ranging from 50% up to 80%, depending on Topic Area and Phase of the project. DOE has a history of investing in research and development (R&D) to make carbon management technologies safer, more reliable, and more efficient. With this NOFO, DOE continues to support development of carbon management approaches that can enable responsible deployment as the United States progresses toward its 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.6F

7 Therefore, applications to this NOFO must include a Community Benefits Plan (CBP) tailored to the scope of this NOFO discussing community and labor engagement; investing in the American workforce; Diversity, and Equity, Inclusion, and Accessibility (DEIA); and delivering benefits to disadvantaged communities while minimizing health and safety risks, especially with regard to direct health impacts to project host communities.

Detailed technical descriptions of the specific Topic Areas (TAs) and associated Technology Readiness Level (TRL) requirements are provided in the sections that follow.

7 https://www.federalregister.gov/documents/2022/02/16/2022-03205/carbon-capture-utilization-and-sequestration-guidance https://netl.doe.gov/resource-sustainability/critical-minerals-and-materials/program-overview/definitions https://www.federalregister.gov/documents/2022/02/16/2022-03205/carbon-capture-utilization-and-sequestration-guidance

Funding Priorities DOE anticipates selecting approximately 11 projects under three topic areas in this NOFO. The key characteristics outlined below are focus areas for each Topic Area. Requirements for application are listed in the Application Content and assessed project criteria are listed in the Review Criteria. Applicants must decide which of these programs to apply based on the TRL and scope of the proposed project.7F

8 The three distinct topic areas are:

Topic Area 1 (TA1): CCUS Demonstration TA1 will support commercial-scale demonstrations of integrated carbon capture, transport, and storage at up to one coal-fired power plant and up to two industrial plants with a minimum capture capacity of 300,000 metric tons CO2/year. TA1 is designed to increase investor confidence through funding fully integrated projects8F

9 at commercial scale. TA1 will be divided into two subtopic areas:

• TA1a – CCUS Demonstration at a Coal Electric Generation Facility

• TA1b – CCUS Demonstration at an Industrial Facility not Purposed9F

10 for Electric Generation

Proposed projects must demonstrate, as part of the application and during the award, high CO2 capture efficiency over baseline emissions. Note that if the carbon capture project includes a new, on-site auxiliary system to generate power or steam for its operation, CO2 capture, compression, and storage from the auxiliary system may need to be included for life cycle assessment (LCA) depending on the requirements given in the detailed TA1 description.

For TA1a, demonstrations may be conducted at a Coal Electric Generation-Only Facility or a Coal Combined Heat and Power Facility. For TA1b, projects applying to this topic area should have sufficient technical detail to support a technology readiness level consistent with an at-scale demonstration and potential replication leading to commercialization. Therefore, proposed CCUS technologies should be validated at a minimum TRL of 7 at the time of the full application. TRL 7 for coal electric generation (i.e., TA1a) is characterized by completion of an integrated, continuous, pilot-scale test (≥10 MWe, validated by a minimum of 2,000 hours continuous steady-state operations) using coal exhaust gas at 90% or higher carbon capture efficiency. TRL 7 for industrial CO2 capture (i.e., TA1b) is characterized by completion of an integrated, continuous, pilot-scale test using actual exhaust gas from the selected process (preferred) or a reasonably similar alternative gas source (must justify in application) validated by a minimum of 2,000 hours continuous steady-state operations. Supporting operational data demonstrating that the proposed technology has met these target performance metrics will be assessed to determine whether the technologies funded can be readily replicated and deployed into commercial practice.

8 In September 2022, DOE issued FOA Number: DE-FOA-0002738 titled “BIL: CARBON CAPTURE DEMONSTRATION PROJECTS PROGRAM FRONT-END ENGINEERING DESIGN STUDIES FOR INTEGRATED CARBON CAPTURE, TRANSPORT, AND STORAGE SYSTEMS” to fund Front-End Engineering Design (FEED) studies associated with large CCUS demonstration projects. Eligibility or awards made under that FOA do not impact eligibility for this NOFO.

Applicants need not have applied for or been awarded funding from that FOA to apply for this NOFO.

9 “Fully integrated” projects include capture, transport (if necessary), and storage of CO2.

10 “Not purposed for electric generation” is from the statute. The statute would not preclude OCED from funding projects in facilities that generate electricity as a byproduct of their industrial process.

Topic Area 2 (TA2): Large-Scale Pilot Projects TA2 will support large-scale pilot projects10F

11 demonstrating transformative technical advances in point-source carbon capture. TA2 is designed to improve the economics of carbon capture through enabling the construction, commissioning, and testing of approaches with preferably increased capture efficiencies, reduced cost, reduced emissions, and improved environmental performance at a large pilot scale.

The overall objective of a project under TA2 is to test a transformational carbon capture technology11F

12 at a pilot scale with a design capacity to capture 1) a recommended minimum of 75,000 metric tons of CO2/year from an exhaust stream at an existing or new domestic industrial/commercial facility, or 2) CO2 from a recommended minimum 20 MWe slipstream at an existing coal electric generation or natural gas (NG) electric generation facility. NG electric generation facilities include simple cycle, combined cycle (NGCC) plants, and combined heat and power plants. The application must provide justification if the proposed scale is lower than the recommended minimum stated above.

The proposed technologies should have commissioned a small pilot prototype, completed TRL 6 validation, or be in the process of completing engineering scale (small pilot scale) testing to validate the technology at TRL 6. The large-scale pilot projects will validate scaling factors to enable the carbon capture technology to proceed to commercial-scale demonstration or commercial-scale application (TRL 7) after completion of projects in this topic area.

TA2 is divided into two subtopic areas, TA2a and TA2b, as described below, differentiated by level of advancement of the capture technology. Applicants should carefully consider the achieved capacity and steady-state runtime of their commissioned small pilot prototype when determining the appropriate subtopic area.

• TA2a – Large-scale pilot for applicants that have commissioned a small pilot prototype that has achieved a steady-state runtime of 1,000 hours with a recommended minimum capture capacity of 1,000 metric tons of CO2/year with the flue gas / process exhaust intended for the large-scale pilot or synthetic exhaust conditions (similar CO2 and O2 concentrations as the flue gas). Justification must be provided for applications not meeting the recommended minimum; however, DOE will preference applications with higher capture capacity and runtime in all cases. Applicants selected under TA2a will enter Phase 1 (Detailed Planning and Front-End Engineering Design) of the OCED Large-Scale Pilot Projects Program.

• TA2b – Large-scale pilot for applicants that have commissioned and started operation of a small-scale pilot with realistic (or actual) flue gas and have some operational data at the time of the full application submission. Applicants that are selected under TA2b will enter an optional Phase 0 (Small-Scale Pilot Testing and data acquisition) of the OCED Large-Scale Pilot Projects Program.

Upon successful completion of the Phase 0, the applicant is expected to achieve the recommended minimum capture capacity and operational runtime outlined in TA2a above. If the applicant plans to demonstrate a capacity lower than the recommended minimum, justification must be provided but DOE will preference applications with higher capture capacity and runtime.

11 The term "large-scale pilot project" is pursuant to section 962(a)(1) of the Energy Policy Act of 2005 as amended (42 U.S.C. § 16292(a)(1)).

12 The term “transformational technology” is pursuant to Section 962(a)(5) of the Energy Policy Act of 2005 as amended (42 U.S.C. § 16292(a)(5)).

Topic Area 3: Networked Demonstration Commercialization TA3 will support activities that drive maturation of the CCUS market where key infrastructure is already developing. TA3 awards will support the integrated, coordinated planning and commercial development of the key components (CO2 emitters, transport, and storage providers or operators) of a localized carbon management “network,” particularly focusing on areas where carbon storage site development has already begun. By driving coordinated development in these key locations, TA3 seeks to reduce CO2 transport and storage uncertainties. Awardees must demonstrate substantial characterization of storage sites at the time of application submission.

TA3 will provide the framework and increase emitter confidence through funding a comprehensive integrated FEED study at commercial scale and through the planning and development of localized carbon management networks. Establishing networks of shared transportation and storage among relevant entities who work together will demonstrate how closely located emitters may leverage integrated system designs to reduce transport and storage fees, thereby making CCUS a more economic option for new and existing facilities. TA3 will support commercial-scale demonstrations of integrated carbon capture, transport, and storage at coal-fired power plants, gas-fired power plants, and industrial plants not intended for power generation.

Preferred applications will contain the following key characteristics:

• Carbon capture technologies that have attained TRL 7 for the proposed applications

• A storage or utilization scale of at least 50 million metric tons of CO2 within a 30-year period and at least 100,000 metric tons per year for the first five years

• Two or more CO2 emitters

• Proof of detailed site characterization of the storage site in preparation for Class VI, Class II, or Outer Continental Shelf (OCS) “Authorization to Construct” permit

• Preliminary title research for the pipeline network

TA3 awards may include elements currently supported through other DOE programs, and those deliverables could be used as inputs, but no duplication of funding will be provided to conduct same scope of work.

Program Goals and Objectives The overarching goal of this NOFO is to unlock a wave of follow-on investment in low-carbon power and low-carbon industrial products by increasing the capital flow to sectors where this investment is already occurring. This will be accomplished by expanding the CCUS market to power and to industrial and commercial applications that are difficult to fully electrify. The selected projects will demonstrate the technical and commercial viability of both established carbon capture technologies in new applications and at commercial scale (TA1), first-of-a-kind transformational technologies (TA2), and region-specific CCUS networks to reduce offtake uncertainty and increase emitter access to storage facilities (TA3).

The commercial-scale demonstration projects (TA1) will add to the body of evidence needed to de-risk CCUS technology and increase investor confidence. This is particularly important in key industrial sectors where CCUS is both critical and unproven today (such as cement, steel, and chemicals). Commercial success at scale, combined with key economic policies, such as 45Q and 45V, “Buy Clean” standards, and regional clean power standards, can help unlock a market valued at tens of billions of dollars within the decade.

This program will also improve the case to invest in CCUS by improving project economics, thus enabling CCUS in more applications. TA2, ideally, will result in a first-of-a-kind carbon capture system integrating transformational technologies that enable a power generation plant or an industrial/commercial facility to profitably capture CO2. Activities in TA2 that will optimize capture efficiency and CO2 purity while maintaining economic feasibility at large pilot scales could both increase the capital flow into CCUS for sectors where that is already occurring and expand the market to power and hard-to-decarbonize industrial applications.

By establishing investable, region-specific CCUS networks with strong community support, TA3 will enable both broader acceptance of CCUS as an industrial process and more assurance for the investment in CCUS.

The economies-of-scale benefits of efficient networking, such as reduced development cost, fewer permits, coordinated workforce development to attract and retain skilled workers, and less community disruption, may show a path for how emitters farther from Class VI wells, particularly those in regions with suboptimal geology, can participate in the market. Successful TA3 awards should strengthen the business case for CCUS in areas where market development is already occurring and can have a particularly beneficial impact in areas where DOE is already supporting some, but not all, parts of the CCUS value chain.

All aspects of this program will help disseminate market knowledge on the ranges and timelines for CCUS development across different industries and locations, helping increase the knowledge base future project developers need.

Award Contribution to Goals and Objectives TA1 should result in up to three fully integrated CCUS demonstration facilities as well as the infrastructure necessary to economically transport and geologically sequester the CO2 from the project. CO2 captured must be sequestered, but the project may leverage transport and storage infrastructure (existing or in development) independent from this project award to satisfy that requirement. Key operational data from TA1 Awardees, such as capture rates, levelized cost-of-capture, and community benefits, will be used to inform industry for follow-on projects, future investment decisions, and greater deployment probability of CCUS facilities.

TA2 should result in up to five full-scale CO2 capture pilot projects that validate systems integration between critical components and balance of plant (BoP). Projects must include technology development, design, testing, and demonstration, thus enabling the technology or process to advance from large-scale pilot project application (TRL 6) to commercial-scale demonstration (TRL 7). These technologies should demonstrate a significant improvement in an operational capability with respect to the current state-of-the-art and have a reasonable potential to lower the cost of CO2 capture beyond what is possible today.

Activities in TA2 must aim to capture CO2 under the most economical scenario by optimizing various parameters of the carbon capture system and BoP.

TA2 projects will generate operational data for verification and validation of the commercial potential of innovative and transformational technologies, including data on technology performance, costs, non-CO2 emissions, life cycle impacts, scaling factors, and community benefits. The objective of TA2 is to advance the maturity of nascent CCUS technologies from TRL 6 to TRL 7.

TA3 will test the commercial viability of CO2 transport and storage networks as an alternative approach to “one source – one sink.” This approach, while theoretically viable, has not been proven in the market due to design complexity. TA3 is expected to produce, through a comprehensive FEED study, regional collections of investment-ready CCUS projects. TA3 awards should support the business case to coordinate construction of CCUS networks across the U.S., increasing investor confidence in CCUS in locations with favorable fundamentals (e.g., adequate geology, existing infrastructure). Each award will support the coordinated commercial development designs and key business, workforce, and community agreements necessary for the emitters, transport providers, and storage providers to reach final investment decision (FID) and attract private sector investment, or to obtain follow-on government funding, such as through the Loan Programs Office (LPO).

Local support or opposition for any large infrastructure project, including CCUS, can have a significant impact on project completion, thereby not only affecting the success of individual projects in this portfolio but broader liftoff of CCUS. Projects across all TAs must proactively work to increase the local support through mechanisms for accountability to and transparency with local communities in the project CBPs.

CCUS is a transition opportunity for incumbent energy workers and projects are especially encouraged to describe strategies to retain skilled workers in the sector and create equitable pathways into CCUS jobs. For example, TA1 projects would incorporate community input on meaningful project aspects (e.g., pipeline routes and safety protocols) and develop options for financial benefit to fenceline communities (e.g., tax revenue, rights-of-way, pore space leasing). In addition to providing local benefits, projects must proactively work with local parties to minimize, mitigate, and monitor any potential negative impacts, especially related to CO2 transport and storage safety, air quality, water use, and water quality.

Expected Performance Goals, Indicators, Targets, Baseline Data, and Data Collection In furtherance of OCED’s mission and to support increased private investment in and deployment of clean energy technologies, as well as to support clean energy markets, OCED expects to utilize specific data provisions that will enable OCED to publish aggregated and anonymized data derived from Protected Data sets provided to DOE under the awards. The goal is to appropriately share aggregated and anonymized data for the benefit of the nation’s broader clean energy ecosystem while ensuring robust protection of any underlying protected/proprietary information or data.

DOE may share operational datasets obtained under award with DOE National Laboratory programs for a variety of reasons including improving system performance modeling capabilities and validating performance. Data shared may include limited rights data and/or protected rights data (See Rights in Technical Data section and What are the Rights in Technical Data Requirements in the NOFO Supplemental Requirements document for definitions of such data). Data shared will be kept confidential by DOE and the DOE National Laboratories in accordance with applicable law, the award terms, and operating contracts between DOE and DOE National Laboratories.

https://www.energy.gov/sites/default/files/2024-09/NOFO%20Supplemental%20Requirements_09042024.pdf https://www.energy.gov/sites/default/files/2024-09/NOFO%20Supplemental%20Requirements_09042024.pdf

Findings from the analysis of such data may be supplied by DOE to projects and may be used by DOE to support performance claims to investors and/or end users but only to the extent that such use does not conflict with the non-disclosure provisions of the DOE intellectual property award terms and conditions regarding properly marked limited rights data and protected rights data.

Topic Area 1 TA1 will support commercial-scale demonstrations of integrated carbon capture, transport, and storage at up to one coal-fired power plant and up to two industrial plants. TA1 is designed to increase investor confidence through funding fully integrated projects12F

13 at commercial scale and providing multiple years of operational data to the public. TA1 will be divided into TA1a (coal electric generation facilities) and TA1b (industrial facility not purposed for electric generation). Projects awarded under TA1 of this NOFO are expected to have the following overall performance goals and success indicators:

• Demonstrate high-efficiency (as described below) CO2 capture rates including the capture and storage of at least 300,000 metric tons CO2/yr.

• Be designed to process flue gas from an entire unit, e.g., the entire exhaust stream, rather than a slipstream, associated with a single boiler or combustor.

• Provide transport and geological sequestration or utilization for all captured emissions.

• Exhibit commercial viability.

• Provide a minimum of 3 years of operational data covering the full spectrum of performance conditions (steady-state, startup and shutdown, dynamic operations) with continued operations beyond the financial assistance project period.

• Provide lessons learned for the project related to the capture technology, market responses, financial scaling, community reception, future scalability, and partnering with transport and storage providers.

Applicants must meet high-efficiency capture minimum requirements:

• TA1a – Applications must be at least consistent with EPA 111(d) requirements applicable to the proposed host plant (e.g., a presumptive standard of 88.4 percent reduction in annual emission rate, with a compliance deadline of January 1, 2032 for coal plants).

• TA1b – Applicants should meet or exceed a 90% nameplate capture rate. If applicants are unable to achieve this target, they must articulate the rationale for proposing a lower capture rate.

DOE uses a stage gate review process to divide the projects into key phases. DOE evaluates a project’s viability to proceed to the next phase through Go/No-Go review by examining key metrics and collecting technical and financial data during the project to ensure that key milestones are met.

13“Fully integrated” projects include capture, transport (if necessary), and storage of CO2.

Projects awarded under TA1 of this NOFO are expected to have the following performance goals and success indicators by the end of Phase 1:

• Complete results of engineering and design studies commissioned for capture and storage facilities, including a FEED study or storage field development plan with an Association for the Advancement of Cost Engineering (AACE) Class 313F

14 cost estimate.

• Establish site control for the capture host site.

• Prove economic viability inclusive of cost and risk-based contingency estimates.

• Demonstrate capital investment or financing plan, and the schedule and requirements to reach final investment decision.

• Secure pore space in the form of a lease or an option including access to the proposed well site(s) or an option for access to proposed well site(s).

• Obtain firm commitments from project partners.

• Implement community and labor engagement, develop mechanisms for accountability (e.g., negotiated agreements), form partnerships, perform assessments, and develop plans for later phases to ensure benefits are delivered to communities and workers.

By the end of Phase 2, projects awarded under TA1 are expected to advance their transport plan, including completion of a FEED study (if necessary) and obtain pipeline easements or option agreements for 80% of the right-of-way including accesses and all necessary aboveground components for the maintenance of the pipeline:

• Pipeline design, including completion of a FEED study

• Environmental, Health, and Safety (EHS) assessments for the proposed transport method

• Pipeline operator CO2 specifications

DOE may also request financial sustainability plans or long-term disposition and decommissioning plans to inform Continuation Decisions. Requested data may include proposed sources of funding/revenue and the business model that will support the projects beyond the DOE award. This may also include an estimate of profit and loss demonstrating how the projects will maintain financial self-sufficiency and strategies to grow beyond the initial award or retain sufficient funding for decommissioning and demolition, if appropriate. Projects selected under this NOFO are expected to submit baseline data supporting the stated TRL of the proposed system.

14 AACE® International Recommended Practice No. 18R-97, Cost Estimate Classification System as Applied in Engineering, Procurement, and Construction for the Process Industries.

Topic Area 2 TA2 will support large-scale pilot projects14F

15 demonstrating transformative technical advances in point source carbon capture. Projects awarded under TA2 of this NOFO are expected to have the following performance goals and success indicators:

• Demonstrate the capture of either (1) 75,000 metric tons CO2/yr from an industrial/commercial facility or (2) CO2 from a recommended minimum 20 MWe slip stream at an existing coal or NG electric generation facility.

• Design the life to be approximately 5 years, with plans to decommission or operate after the financial assistance project period.

• Create a testing and operation plan sufficient to advance to TRL 7 by the end of the financial assistance project period, including:

o At least one (1) year of large-scale pilot testing under realistic exhaust conditions covering the full spectrum of performance conditions (steady-state, startup and shutdown, dynamic operations), and parametric studies o At least 2,000 hours of operational data under steady-state at performance targets

• Collect and report the inlet and outlet criteria pollutants (e.g., NOx, SOx, particulate matter) and technology-related emissions (e.g., solvent/sorbent losses and their degradation by-products) during testing and operations.

• Provide lessons learned for the project related to the capture technology, market responses, financial scaling, community reception, and future scalability.

• Ensure that the technology meets pipeline or offtake CO2 product specifications.

• Update process models with the data acquired during pilot testing.

• Implement community and labor engagement, perform assessments, and develop plans for later phases to ensure carbon capture projects maximize community benefits.

Applicants proposing coal and new NG electric generation applications must be consistent…