FundOpp_DE-FOA-0003017_Amd_000001.pdf

FINANCIAL ASSISTANCE

FUNDING OPPORTUNITY ANNOUNCEMENT

Department of Energy (DOE)

Office of Fossil Energy and Carbon Management

(FECM)

INNOVATIVE TECHNOLOGIES TO ELIMINATE FLARING

FROM OIL AND NATURAL GAS PRODUCTION

Funding Opportunity Announcement (FOA) Number: DE-FOA-0003017

FOA Type: Modification 000001

Assistance Listing Number: 81.089, Fossil Energy Research and Development

FOA Issue Date: 09/06/2023 Submission Deadline for Full Applications: 11/27/2023 - 11:59:59 PM ET

Expected Date for Selection Notifications: April 2024 Expected Date for Award: August 2024

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Modifications

All modifications to the Funding Opportunity Announcement are highlighted in the body of the FOA.

Mod.

No.

Date Description of Modification

000001 10/27/2023 Additional text for AOI 1: Pilot Scale Field Validation of the Mitigation of Flared Natural Gas

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Registration Requirements

There are several one-time actions that must be completed before submitting an application in response to this Funding Opportunity Announcement (FOA) (e.g., register with the System for Award Management (SAM), obtain a Unique Entity Identifier (UEI) number, register with Grants.gov, and register with FedConnect.net to submit questions). It is vital that applicants address these items as soon as possible. Some may take several weeks, and failure to complete them could interfere with an applicant’s ability to apply to this FOA.

➢ SAM Applicants must register with SAM at https://www.sam.gov/ prior to submitting an application in response to this FOA (unless the applicant is exempt from those requirements under 2 CFR 25.110). Designating an Electronic Business Point of Contact (EBiz POC) and obtaining a special password called an MPIN are important steps in SAM registration. Failure to register with SAM will prevent your organization from applying through Grants.gov. The applicant must maintain an active SAM registration with current information at all times during which it has an active Federal award or application under consideration. More information about SAM registration for applicants is found at:

https://www.fsd.gov/gsafsd_sp?id=gsafsd_kb_articles&sys_id=650d493e1bab7c105 465eaccac4bcbcb.

NOTE: If clicking the SAM links do not work, please copy and paste the link into your browser.

Due to the high demand of SAM registrations and UEI requests, entity legal business name and address validations are taking longer than expected to process. Entities should start the SAM and UEI registration process as soon as possible. If entities have technical difficulties with the SAM registration or UEI validation process they should utilize the HELP feature on SAM.gov. SAM.gov will work entity service tickets in the order in which they are received and asks that entities not create multiple service tickets for the same request or technical issue. Additional entity validation resources can be found here: GSAFSD Tier 0 Knowledge Base - Validating your Entity.

➢ UEI Applicants must obtain an UEI from the SAM to uniquely identify the entity. The UEI is available in the SAM entity registration record.

NOTE: Subawardees/subrecipients at all tiers must also obtain an UEI from the SAM and provide the UEI to the Prime Recipient before the subaward can be issued.

➢ Grants.gov - Applicants must register with Grants.gov and set up your WorkSpace. You cannot submit an application through Grants.gov unless you are registered. Please read the registration requirements carefully and start the process immediately.

https://www.sam.gov/ https://www.fsd.gov/gsafsd_sp?id=gsafsd_kb_articles&sys_id=650d493e1bab7c105465eaccac4bcbcb https://www.fsd.gov/gsafsd_sp?id=gsafsd_kb_articles&sys_id=650d493e1bab7c105465eaccac4bcbcb https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1

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1) The Authorized Organizational Representative (AOR) must register at:

https://apply07.grants.gov/apply/OrcRegister

2) An email is sent to the E-Business (E-Biz) POC listed in SAM. The E-Biz POC must approve the AOR registration using their MPIN from their SAM registration.

More information about the registration steps for Grants.gov is provided at:

https://www.grants.gov/web/grants/applicants/registration.html

In addition:

o Add a Profile to a Grants.gov Account: A profile in Grants.gov corresponds to a single applicant organization the user represents (i.e., an applicant) or an individual applicant. If you work for or consult with multiple organizations and have a profile for each, you may log in to one Grants.gov account to access all of your grant applications. To add an organizational profile to your Grants.gov account, enter the UEI for the organization in the UEI field while adding a profile.

For more detailed instructions about creating a profile on Grants.gov, refer to:

https://www.grants.gov/web/grants/applicants/registration/add-profile.html o EBiz POC Authorized Profile Roles: After you register with Grants.gov and create an Organization Applicant Profile, the organization applicant's request for Grants.gov roles and access is sent to the EBiz POC. The EBiz POC will then log in to Grants.gov and authorize the appropriate roles, which may include the AOR role, thereby giving you permission to complete and submit applications on behalf of the organization. You will be able to submit your application online any time after you have been assigned the AOR role.

NOTE: When applications are submitted through Grants.gov, the name of the organization applicant with the AOR role that submitted the application is inserted into the signature line of the application, serving as the electronic signature. The EBiz POC must authorize people who are able to make legally binding commitments on behalf of the organization as a user with the AOR role;

this step is often missed and it is crucial for valid and timely submissions.

For more detailed instructions about creating a profile on Grants.gov, refer to:

https://www.grants.gov/web/grants/applicants/registration/authorize-roles.html

To track your role request, refer to:

https://www.grants.gov/web/grants/applicants/registration/track-role-status.html

Questions relating to the registration process, system requirements, or how an application form works must be directed to Grants.gov at 1-800-518-4726 or support@grants.gov.

https://apply07.grants.gov/apply/OrcRegister https://www.grants.gov/web/grants/applicants/registration.html https://www.grants.gov/web/grants/applicants/registration/add-profile.html https://www.grants.gov/web/grants/applicants/registration/authorize-roles.html https://www.grants.gov/web/grants/applicants/registration/authorize-roles.html https://www.grants.gov/web/grants/applicants/registration/track-role-status.html https://www.grants.gov/web/grants/applicants/registration/track-role-status.html mailto:support@grants.gov

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➢ FedConnect.net - Applicants must register with FedConnect to submit questions.

FedConnect website: www.fedconnect.net.

See Section IV for Application and Submission Information (including how to create a WorkSpace).

http://www.fedconnect.net/

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Table of Contents

I. Funding Opportunity Description

A. Authorizing Statutes B. Background/Description

i. Background and Purpose

ii. Research and Development Community Benefits Plan (April 2023)

C. Objectives/Areas of Interest D. Applications Specifically Not of Interest

II. Award Information

A. Type of Application B. Type of Award Instrument C. Award Overview

i. Estimated Funding, Number of Awards, Anticipated Award Size, and Maximum DOE Share

ii. Estimated Project Period of Performance

III. Eligibility Information

A. General B. Eligible Applicants

iii. Federal Entities

iv. Foreign Entities

v. DOE/NNSA FFRDC Participation in Project Teams

C. Cost Sharing

i. Cost Share Requirements

ii. Legal Responsibility

iii. Cost Share Allocation

iv. Cost Share Types and Allowability

v. Cost Share Verification

vi. Cost Share Contributions by FFRDCs

D. Compliance Criteria E. Responsiveness Criteria F. Number of Submittals Eligible for Review G. Questions Regarding Eligibility

IV. Application and Submission Information

A. Form and Content Requirements B. Full Applications

i. Application Package

ii. Content and Form of Full Application

iii. SF-424: Application for Federal Assistance

iv. Project/Performance Site Location(s)

v. Other Attachments Form

vi. Project Narrative File – Mandatory Other Attachment

vii. Summary for Public Release File (April 2023)

viii. Project Management Plan

ix. Resume File (April 2023)

x. SF 424A Budget Information – Non-Construction Programs (SF424) File

xi. Budget Justification File

xii. Subaward Budget Justification (if applicable)

xiii. Budget for DOE/NNSA FFRDC/NLs or non-DOE/NNSA FFRDC/NLs, (if applicable)

xiv. Authorization for DOE/NNSA FFRDC/NLs or non-DOE/NNSA FFRDCs/NLs (if applicable)

xv. Environmental Questionnaire

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xvi. Cost Share Commitment Letters (if applicable)

xvii. SF-LLL: Disclosure of Lobbying Activities (if applicable)

xviii. Waiver Requests (if applicable) (April 2023)

xix. Data Management Plan

xx. R&D Community Benefits Plan (April 2023)

xxi. Current and Pending Support (April 2023)

xxii. U.S. Competitiveness

xxiii. Transparency of Foreign Connections xxiv.Potentially Duplicative Funding Notice

xxv. Additional Full Application Requirements

C. Post Selection Information Requests (April 2023) D. Submission Dates and Times E. Intergovernmental Review F. Other Submission and Registration Requirements

i. Registration Process

ii. Where to Submit

iii. Full Application Proof of Timely Submissions

iv. Electronic Authorization of Applications and Award Documents

G. Funding Restrictions (April 2023) H. Pre-Award Costs I. Pre-Award Costs Related to National Environmental Policy Act (NEPA) Requirements J. Performance of Work in the United States (Foreign Work Waiver) (April 2023)

i. Requirement

ii. Failure to Comply

iii. Waiver

K. Foreign Travel L. Equipment and Supplies M. Buy America Requirements for Infrastructure Projects (April 2023)

V.Application Review Information

A. Review Criteria

i. Compliance/Responsiveness Review

ii. Full Application Merit Review Criteria

B. Other Selection Factors

i. Program Policy Factors

C. Other Review Requirements

i. Risk Assessment (May 2023)

ii. Recipient Responsibility and Qualifications (May 2023)

D. Review and Selection Process

i. Merit Review

ii. Selection

iii. Discussions and Award

VI. Award Administration Information

A. Notices

i. Ineligible Submissions

ii. Full Application Notifications

B. Administrative and National Policy Requirements

i. Award Administrative Requirements

ii. Unique Entity Identifier Requirements and System for Award Management (April 2023)

iii. Uniform Commercial Code (UCC) Financing Statements

iv. Foreign National Participation (April 2023)

v. Export Control (April 2023)

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vi. Statement of Federal Stewardship

vii. Statement of Substantial Involvement

viii. Environmental Review in Accordance with National Environmental Policy Act (NEPA)

ix. Conference Spending

x. Interim Conflict of Interest Policy for Financial Assistance

xi. Participants and Collaborating Organizations

xii. Current and Pending Support

xiii. Fraud, Waste and Abuse (April 2023)

xiv. Human Subjects Research (April 2023)

xv. Real Property and Equipment

C. Reporting

i. Reporting Requirements

ii. Subaward and Executive Reporting

D. Applicant Representations and Certifications

i. Lobbying Restrictions

ii. Nondisclosure and Confidentiality Agreements Representations

iii. Corporate Felony Convictions and Tax Liabilities Representations (March 2014)

VII. Questions/Agency Contacts

A. Questions B. Agency Contact

VIII.Other Information

A. Modifications B. Government Right to Reject or Negotiate C. Commitment of Public Funds D. Treatment of Application Information (April 2023) E. Evaluation and Administration by Non-Federal Personnel F. Intellectual Property Developed Under This Program (September 2021) G. Program Covered Under Special Protected Data Statute (December 2014) H. Energy Data eXchange (EDX) Requirements (December 2022) I. Notice Regarding Eligible/Ineligible Activities J. Notice of Right to Conduct a Review of Financial Capability K. Notice of Potential Disclosure Under Freedom of Information Act (FOIA) L. Requirement for Full and Complete Disclosure M. Retention of Submissions N. Protected Personally Identifiable Information O. Annual Compliance Audits P. Accounting System Q. Indirect Rates R. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment (April 2023) ..87 S. Prohibition Related to Foreign Government-Sponsored Talent Recruitment Programs (April 2023) T. Implementation of Executive Order 13798, Promoting Free Speech and Religious Liberty (November 2020)

IX. Appendices

Appendix A – Cost Share Information

Appendix B – Waiver Requests: Foreign Entity Participation and Performance of Work in the United States

i. Waiver for Foreign Entity Participation as the Prime Recipient

ii. Waiver for Performance of Work in the United States (Foreign Work Waiver)

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Appendix C – Required Use of American Iron, Steel, Manufactured Products, and Construction Materials - Buy America Requirements for Infrastructure Projects (April 2023)

Appendix D – Statement of Project Objectives Template

Appendix E – Project Management Plan Template

Appendix F – Data Management Plan

Appendix G – Technology Readiness Levels

Appendix H – Technology Maturation Plan

Appendix I – R&D Community Benefits Plan Guidance

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I. Funding Opportunity Description

Authorizing Statutes

The programmatic authorizing statutes are:

• Public Law (PL) 95-91, DOE Organization Act

• PL 116-260, Energy Act of 2020 (Division Z of the “Consolidated Appropriations

Act, 2021’’)

• PL 109-58, Energy Policy Act 2005, as amended, at 42 U.S.C. §16291

Awards made under this announcement will fall under the purview of 2 Code of Federal Regulations (CFR) Part 200 as amended by 2 CFR Part 910.

Background/Description

i. Background and Purpose

In November 2021, President Biden unveiled the U.S. Methane Emissions Reduction Action Plan, redoubling efforts to dramatically reduce U.S. methane emissions while simultaneously cutting consumer costs, protecting workers and communities, growing jobs, and promoting U.S. technology innovation.

Aligned with this action was the Administration’s pledge that the United States would work with global partners to reduce the world’s methane emissions 30 percent from 2020 levels by 2030.

According to the IEA’s Methane Tracker Database, oil and natural gas operations account for the largest source of methane emissions across the energy sector. The 2021 estimates for the United States can be seen in Figure 1 across three potential point sources, namely fugitive emissions from equipment leaks, intentional safety and operational venting operations, and methane emissions caused by incomplete combustion in flares.1 It is important to note that Figure 1 shows the estimated volumes for each of these sources and that the volume shown for “flaring” is not the volume of gas being flared but rather is the volume of methane that is not combusted by the flare during intermittent periods of venting and incomplete combustion. As such, these methane emissions are particularly prevalent in onshore oil production, where associated gas is likely to be flared due to the lack of pipeline offtake capacity. In fact, a recent study found that the estimated effective flaring

1 International Energy Agency (2022), Methane Tracker Database, IEA, Paris. License: Creative Commons Attribution CC BY-SA 4.0.

https://www.congress.gov/bill/95th-congress/senate-bill/826 https://www.congress.gov/116/plaws/publ260/PLAW-116publ260.pdf https://www.congress.gov/116/plaws/publ260/PLAW-116publ260.pdf https://www.congress.gov/bill/109th-congress/house-bill/6/text

DE-FOA-0003017 Page 11 of 135 efficiency was only 91 percent due to a combination of low efficiency combustion and flares being unlit approximately 3% to 5% of the time. The study estimated that this resulted in five times more methane entering the atmosphere than what is calculated when 98 percent flaring efficiency and constant-lit conditions are assumed by industry and regulators.2

Figure 1: IEA-Estimated Volume of Methane Emissions in 2021 from Energy Industries across the United States from Fugitive Leaks, Intentional Venting, and the Methane that is not Adequately Combusted in Flares

It should be noted that the amount of gas that is successfully combusted in a flare also represents significant volumes. A June 2022 report by the IEA shows the global trends back to 1990 and covers the economic and environmental impact of the leaked, vented, and uncombusted methane combined with the impact of the natural gas that is flared (Figure 2).

2 Genevieve Plant, Eric A. Kort, Adam R. Brandt, Yuanlei Chen, Graham Fordice, Alan M. Gorchov Negron, Stefan Schwietzke, Mackenzie Smith, Daniel Zavala-Araiza. Inefficient and unlit natural gas flares both emit large quantities of methane. Science, 2022; 377 (6614): 1566 DOI:

10.1126/science.abq0385

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Figure 2: Volume of Methane Emissions from Leaks, Venting, and Insufficient Combustion in Flares compared to the Volume of Methane Intentionally Flared

Globally Over the Past 3 Decades

The U.S. Methane Emissions Reduction Action Plan is an ambitious, whole-of-government initiative that uses all available tools – regulations, financial incentives, transparency and disclosure of data, and public and private partnerships – to identify and cost-effectively reduce methane emissions from all major sources, including those from the oil and natural gas industry, the largest industrial source of methane emissions in the United States (responsible for approximately 30 percent of total methane emissions). The Administration’s targets include a 50 percent reduction in carbon emissions by 2030, 100 percent clean electricity by 2035, and net-zero carbon emissions by 2050. The Inflation Reduction Act signed into law in August 2022 included Section 50263 which established that royalties are owed on all gas produced from Federal land, including gas that is consumed or lost by flaring, intentional venting, or negligent releases through any equipment used during upstream operations for leases issued after August 16, 2022. These aggressive carbon emissions reduction targets will be met, in part, by advancing technologies that will drastically reduce and potentially eliminate methane emissions associated with the production of oil and natural gas, in particular, emissions associated with natural gas flaring.

Recently, new regulations have been proposed that, if adopted, would encourage operators to use alternatives to flaring. In November 2021, followed by supplemental revisions in November 2022, the EPA proposed changes to the 2016 New Source Performance Standards and Emissions Guidelines (2016 NSPS OOOOa) to include requirements for emissions sources from oil and natural gas operations that were previously not regulated. The

DE-FOA-0003017 Page 13 of 135 proposal includes requirements for additional documentation if an operator flares natural gas, that shows clear and comprehensive justification on why alternatives to flaring were technically infeasible, including considerations of the use of any emerging technologies that could make beneficial use of the gas. 3 4

In November 2022 the Department of the Interior - Bureau of Land Management (BLM) also released its most recent proposed updates to the 1979 Notice to Lessees and Operators of Onshore Federal and Indian Oil and Gas Leases: Royalty or Compensation for Oil and Gas Lost (NTL-4A) targeting the reduction of natural gas that is wasted during the production of oil and gas on federal and Tribal lands. If adopted, this would require that any gas that is flared or vented be limited to 1,050 Mcf per month and be qualified as unavoidably lost in order to avoid requirements for payment of royalties, with the BLM able to order an operator to curtail or shut-in production if flaring exceeds 4,000 Mcf per month for 3 consecutive months. The proposed rule would require operators to submit a waste minimization plan that would include details on how the operator will maintain a leak detection and repair (LDAR) program and would include a detailed evaluation of alternative on-site approaches for gas use such as compression, NGLs extraction, or on-site utilization.4

ii. Research and Development Community Benefits Plan (April 2023)

DOE is committed to investing in research and development (R&D) innovations that deliver benefits to the American public and leads to commercialization of technologies and products that foster sustainable, resilient, and equitable access to clean energy. Further, DOE is committed to supporting the development of more diverse, equitable, inclusive, and accessible workplaces to help maintain the nation’s leadership in science and technology.

3 United States, Environmental Protection Agency, "Standards of Performance for New, Reconstructed, and Modified Sources and Emissions." 8 Nov 2022, https://www.epa.gov/system/files/documents/2022- 11/SAN%208510_OilandGasClimate_Preamble_Supplemental_20221107_AI.pdf 4 United States, Department of The Interior, “Waste Prevention, Production Subject to Royalties, and Resource Conservation.” RIN 1004-AE79, 28 Nov 2022, https://www.doi.gov/pressreleases/interior-department-takes-action-reduce-methane-releases-public-and-tribal-lands.

https://www.epa.gov/system/files/documents/2022-11/SAN%208510_OilandGasClimate_Preamble_Supplemental_20221107_AI.pdf https://www.epa.gov/system/files/documents/2022-11/SAN%208510_OilandGasClimate_Preamble_Supplemental_20221107_AI.pdf

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To support the goal of building a clean and equitable energy economy, projects funded under this Funding Opportunity Announcement are expected to (1) advance diversity, equity, inclusion, and accessibility (DEIA);

(2) contribute to energy equality; and (3) invest in America’s workforce. To ensure these objectives are met, applications must include a R&D Community Benefits Plan (R&D Community Benefits Plan) that addresses the three objectives stated above. See Section IV, “Application and Submission Information, R&D Community Benefits Plan” and the “R&D Community Benefits Plan” Appendix for more information on the R&D Community Benefits Plan content requirements.

Objectives/Areas of Interest

The objective of this FOA is to competitively solicit cost-shared research proposals for pilot-scale field deployment and validation of efficient, cost-effective solutions ready for pre-commercialization (advancing research from a Technology Readiness Level (TRL) 6 to a minimum of TRL 7 – see Appendix G for TRL definitions) that can eliminate flaring and non-safety related venting of natural gas at the well site. Projects sought under this FOA include the use of innovative technologies for processing and separating oil and associated gas at the well site designed to eliminate flaring, as well as new technologies designed to convert the associated natural gas into value-added solid or liquid products. Proposals can also develop technologies that use both processing and conversion, provided the applicant demonstrates that the overall process is technically feasible, economically feasible and ready for pilot-scale field testing at the well site. Proposals must include information on the performance of the technology to date and clearly illustrate pre-commercial status of the system in terms of its potential economic viability.

Adequate consideration must also be given on how the proposed system will be deployed at the specific wellsite selected as part of the project. This should include details on any required construction and include consideration for existing infrastructure and the topology of the field site.

Detailed discussion should also be included on the planned operation of the system at the well site that clearly establishes the daily target volume of natural gas that will be processed and/or converted, the required utilities, and the volume per day of any product and/or waste streams.

Applicants must include a definition for successful continuous steady state operation for their system and establish the minimum target in months of steady-state operation that produces sufficient input data for a final Techno-economic Analysis (TEA) and reduce commercialization risks to a level that would enable rapid industrial adoption. The TEA required at project close should be based on the measured performance achieved by the system during field testing. The TEA must also compare with existing commercial

DE-FOA-0003017 Page 15 of 135 technology options and take into account the scalability of the solution to a broad set of well site production volumes, associated gas volume, and gas composition. The handling, transport costs, and marketability of the hydrocarbons, pipeline natural gas, and natural gas liquids (NGLs) produced from the natural gas processing or other high value products (e.g., liquids or solids) created by conversion must be included as part of the final TEA.

Proposals must show how net-zero methane emissions will be achieved at the well, supported by comprehensive field-validated results, and a full emissions profile for all greenhouse gas emissions from the process and from the transport of the natural gas, NGLs, or end-product produced. The objective of such R&D would be to accelerate development of technologies that improve efficiency of upstream natural gas and oil processing and separation operations using novel approaches that would support the evolving regulatory landscape to drastically reduce or eliminate the use of flares at the wellhead through gas processing and/or conversion to other sustainable chemicals and low-carbon marketable products.

Accordingly, this FOA has one Area of Interest (AOI) aligned with this objective.

The one Area of Interest (AOI) for this Announcement is: Pilot Scale Field Validation of the Mitigation of Flared Natural Gas

Research Sought

In the United States, natural gas that is vented and flared is reported to the U.S. Energy Information Administration (EIA) by various state and regional reporting agencies across the country dating further back than satellite-based observations. This trend shows a reduction in flaring overall since the 1940s and 1950s, but an upward trend since around 2000 (Figure 3).5

5 U.S. Energy Information Administration, “U.S. Natural Gas Vented and Flared.”, 31 Jan. 2023, https://www.eia.gov/dnav/ng/hist/n9040us2a.htm.

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Figure 3: Reported Natural Gas Flaring Volumes across all reporting agencies in the United States since 1936

Technologies exist to mitigate the flaring or non-safety related venting of stranded natural gas at a variety of scales. These approaches include utilization concepts for modular gas processing that incorporate desulfurization, oxygen removal, NGL separation, NGL fractionation, and syngas production. There are also modular gas-to-liquids (GTLs) processes that use chemical conversion to create liquid products, typically synthetic crude or methanol.6 Due to a combination of technical, regulatory, and economic factors, these solutions have not seen widespread operation in large areas of oil production where natural gas continues to be flared in significant volumes.

To enable operators to meet carbon emissions reduction targets and potential evolving regulations, new technologies are needed with convincing technical, environmental, and economic justification to mitigate flaring and methane emissions at upstream well site locations across a diverse set of producing basins. DOE seeks to support the full mitigation of flaring to the point of achieving net-zero emissions at the wellhead through field deployment and validation of new technologies capable of net-zero emissions that optimize upstream operations at the well site to produce natural gas, NGLs, or other hydrocarbons that can be brought to market, and may also include approaches for the synthesis of other liquid or solid products produced via conversion methods.

Proposed solutions should not result in a shift of greenhouse gas emissions from upstream to downstream, and thus the processed natural gas, NGLs, oils, or the liquid or solid chemicals produced through separation and conversion processes should not result in large emissions associated with later handling or processing, and should be able to use existing, economically and

6 World Bank, GGFR Technology Overview - Utilization of Small-Scale Associated Gas Amazonas Station, Washington, D.C. : World Bank Group, Sept 2022, https://documents1.worldbank.org/curated/en/469561534950044964/pdf/GGFR-Technology-Overview- Utilization-of-Small-Scale-Associated-Gas.pdf.

https://documents1.worldbank.org/curated/en/469561534950044964/pdf/GGFR-Technology-Overview-

DE-FOA-0003017 Page 17 of 135 environmentally acceptable distribution networks to get the products to market. Solutions must work toward “net-zero” emission operations at the well site, but the emissions profile submitted as part of the proposal shall also include the impact of any emissions related to transport to the existing distribution point. Existing commercial solutions for well site gas separation, processing, and conversion shall be evaluated as part of the effort, and clear advantages over the state-of-the-art for the proposed solution must be clearly described. During the operational portion of each project, applicants are expected to generate data and provide a final refined TEA at the project close that is updated with the measured field performance results. The TEA shall include transport-to-market costs for the processed natural gas, NGLs, oils, or converted chemical products to an appropriate midstream location and include comparison to the economics of existing state-of-the-art technologies. The final report should clearly show the difference between the preliminary energy consumption and efficiency estimates and how the actual field performance test results affect those values.

Projects shall identify an industry partner(s) and a specific field location where associated gas is typically being flared to demonstrate the technology on-site with the cooperation of an operator.

Economic viability discussions and calculations shall include relevant transport costs and be defined in terms of the market price required for the processed natural gas and other hydrocarbons produced by the approach, or in terms of the market price required for the converted products that are synthesized. Economic impacts of parameters such as well density, existing infrastructure, access to public roads with trucking weight limits considered, and the total distance to potential markets for sale of the solid, liquid, or gaseous final product must be considered.

Advancing cost-effective technology options toward commercialization that can more efficiently mitigate methane emissions at the well site must adequately consider relevant field conditions to achieve successful validation. Applicants are expected to clearly state and adequately scale their solutions to handle the natural gas volume per day (in SCFD) for the pilot test site and provide cost calculations for scaling the process to other production volumes and flow rates, variable wellhead gas compositions, and any physical spacing requirements at oil and natural gas well sites. The field validation and final TEA must show systems to be tolerant of, favorably leverage, or otherwise address the presence of constituents commonly associated with a raw natural gas stream at the wellhead such as:

• Variable ratios of methane, ethane, propane, butane and other hydrocarbons including mono-and polycyclic aromatic hydrocarbons (PAHs).

• Variable amounts of non-hydrocarbon gases such as oxygen, nitrogen, carbon dioxide, hydrogen sulfide, and water vapor.

• Non-hydrocarbon gases and other constituents unique to specific reservoirs.

• Variable levels of particulates, other gas condensates, and heavy liquids other than NGLs.

In addition, field validation of the proposed technology must complement the typical or expected oil and associated natural gas production curve while also addressing other operational conditions that evolve during the lifespan of a well such as:

• Changing oil and associated natural gas production over days, months, and years that will require flexibility, adaptability, and scalability of technologies.

• Variable field gas or formation pressure based on localized current and historic production.

• Anticipated “down-time” for maintenance or issues that must be addressed.

DE-FOA-0003017 Page 18 of 135

• Evolution of the raw natural gas stream’s composition at the wellhead.

• Establishment of definition of steady-state or continuous operation for the system required to validate pre-commercial viability.

Technologies may include, but not limited to:

• Modular gas processing systems that enable “zero leakage and flaring” operation at the well and include emissions-free storage for any required storage of the hydrocarbon gases or liquids, and/or

• Modular reactors that enable “zero leakage and flaring” operation to produce liquids such as methanol, industrial chemicals, valuable solid carbon products, or other sustainable chemicals and low-carbon marketable products, including the facilitation of emissions-free storage of the products and co-products, and/or

• Any synergistic combination of the two approaches above while maintaining zero-emissions status at the well site.

The end goal of the AOI is to use data from pilot-scale field validations to show economic feasibility for pre-commercial solutions achieving a TRL of 7 and that enable on-site natural gas processing and/or natural gas conversion to other chemicals to offset the use of upstream non-safety related natural gas venting and flaring upstream at well locations. Solutions must show a net-zero emissions profile at the well site that is in line with the current Administration’s decarbonization goals and well-aligned to support potential future flaring regulations. A clear line of comparison must be shown the technological advancement and potential cost advantages of the proposed method over existing commercial solutions.

Technical Elements that Must be Included in Applications

Technical elements that must be included in the application are:

• Explanation of the current state of the proposed technology including the specific elements of the approach that are expected to be further validated in the field, including how the validation of these aspects will more firmly establish the pre-commercial viability of the method. The technical and economic viability must be clearly established at the time of submission for the proposed approach.

• A defined well site location must be established at the time of application for field testing in direct collaboration with an industry partner. A letter of commitment from the industry partner must be submitted at the time of application that defines the planned well site location, time frame for operation, an initial estimated labor hour commitment, and an outline of expected tasks to ensure the safe and effective operation of the technology in the field.

• Discussion of expected construction duration and costs. This should include an overhead layout that shows all equipment required for the proposed system such as storage tanks, reactors, or required ancillary systems as they relate to the existing infrastructure and topology of the planned deployment site.

Explanation of how the technology will be applied to both new wells and as a retrofit to existing wells must also be considered.

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• Discussion of a plan for operation that clearly describes what is considered steady operation of the system and establishes a target duration (in months) of continuous steady state operation that the systems will need to achieve in the field demonstration to properly inform the final TEA. The discussion must also include targets for performance and duration of steady-state operation that are established by an industrial partner and will adequately validate the system for commercial adoption. The performance achieved in the field testing of the system relative to these targets is required at project close.

• A final TEA is due at project close that is based on the measured performance results completed during the targeted steady-state field testing phase of the project, including any real-world variation or additional external variables observed during testing. The TEA must include estimates of the expected capital cost, including appropriate equipment sizing for wells with different production volumes. The expected operating costs should include utilities, catalyst cost accounting for catalyst attrition, other required raw materials, labor, and the treatment and handling of any waste streams. The TEA must include transport cost of the final processed natural gas, NGLs, oils, or converted chemical products and any co-products to an appropriate midstream location. The impact of variables such as utility cost, the selling price of natural gas, the market price for converted products, and the disposal cost of unsold side products must be clearly shown in the economic assessment. Direct comparison to the economics of existing competing technologies must also be included. In addition, the final TEA should clearly address how the economics would scale with representative higher and lower well site natural gas flow rates, higher and lower well site natural gas production volumes, and variable levels of hydrocarbons and contaminates in the gas stream.

• A realistic quantified assessment, based on the measured field test data, of the ability of the system to achieve “zero leakage and flaring” operation at the well site. This must include quantification of the methane emissions reduction that can be achieved with the adoption of the technology and an estimate of how the methane mitigation would scale to other sites with higher and lower oil and associated natural gas production volumes.

• A detailed emissions profile of the full system at the end of the field validation efforts, including all gaseous emissions associated with natural gas and oil production at the wellhead and any emissions or by-product gases produced by the proposed process at the well site. Greenhouse gas emissions related to any required transport of the marketable end-product from upstream at the well to a relevant midstream distribution or storage location must be included as part of the emissions profile. A description of how the system impacts other environmental considerations at the well site, such as produced water must also be included.

• An explanation of the current state-of-the-art industry practices for natural gas processing and natural gas conversion upstream at a well site shall be part of the submitted application, including explanation of how the proposed technology

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• Detailed description of the tasks and sub-tasks to be undertaken during the research project with clearly stated milestones and objectives showing proper designation of operational tasks to an Industrial partner for the field deployment and validation.

• Clearly defined statement of the likely challenges and obstacles to completing the proposed work and planned strategies for meeting these challenges and mitigation of the obstacles.

Applications Specifically Not of Interest

The following types of applications will be deemed nonresponsive and will not be reviewed or considered (See Section III, Eligibility Information;

Responsiveness Criteria):

• Submissions that fall outside the technical parameters specified in Section I, “Funding Opportunity Description; Objectives/Areas of Interest” of the FOA, including but not limited to the following:

o Processes that are limited to laboratory-scale operation that are not using natural gas that is produced directly at the wellhead.

o Applications that do not have a letter of commitment at the time of submission from an Industrial partner willing to operate the proposed technology at a well site.

o Technologies below the requested starting TRL that have only been validated in laboratory settings and are not ready for pre-commercial pilot scale deployment in the field.

o Existing commercial NGL separation technologies that do not clearly add new R&D elements to fundamentally improve the effectiveness (cost, efficiency) of the operations and commercialization opportunities.

o Existing commercial gas treatment technologies that remove contaminants such as water, sulfur, and oxygen but do not further process the hydrocarbon constituents of the gas.

o Methane slip detection or flare performance monitoring systems meant only to quantify emissions.

o Systems that focus solely on power or heat generation on-site as the end product and do not use that energy for powering upstream gas processing and conversion.

o Gas reinjection systems for enhanced oil recovery or reservoir management or any system that requires geological gas

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o Systems that vent hydrogen or other direct or indirect greenhouse gases to the atmosphere as part of the process without consideration of the capture and utilization or transport and sale of these gases.

o Proposals using computer simulations or development of modeling tools or methods that do not culminate in a field deployment for validation of a laboratory-proven technology at a well site.

o Technologies centered on hydrogen production.

II. Award Information

Type of Application

DOE will accept only new applications under this announcement.

Type of Award Instrument

DOE anticipates awarding cooperative agreements under this funding opportunity announcement (See Section VI, “Award Administration Information; Statement of Substantial Involvement”).

Award Overview

i. Estimated Funding, Number of Awards, Anticipated Award Size, and Maximum DOE Share

DOE expects to make Federal funding available for new awards under this FOA as follows:

Anticipated Individual Award Size Area of Interest

Estimated Federal Funding

$K

Anticipated No. of

Awards DOE Share

$K/%* Cost Share

$K/%** Total

Maximum DOE Share of Award

$K 1 37,500 0-3 10,000/80 2,500/20 12,500 30,000

Total

*The DOE share listed under the anticipated individual award size is the maximum amount of DOE funding that can be proposed for each Area of Interest. Applications that propose a DOE share in excess of these limits will not be evaluated.

**Applicants may propose cost share in excess of 20% which could result in higher total award values than those stated above.

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APPLICATIONS WHICH EXCEED THE “MAXIMUM DOE SHARE OF AWARD”

SPECIFIED ABOVE WILL BE CONSIDERED NONCOMPLIANT (SEE SECTION III,

“ELIGIBILITY INFORMATION; COMPLIANCE CRITERIA”). DOE WILL NOT

REVIEW OR CONSIDER NONCOMPLIANT APPLICATIONS.

DOE may establish more than one budget period for each award and fund only the initial budget period(s). Funding for all budget periods, including the initial budget period, is not guaranteed. Funding for all awards and future budget periods are contingent upon the availability of funds appropriated by Congress for the purpose of this program and the availability of future-year budget authority.

ii. Estimated Project Period of Performance

DOE anticipates making awards with an estimated project period of performance of no more than 5 years.

Typically, budget periods are established on an annual basis. In some cases, shorter or longer budget periods may be established for compelling programmatic or administrative reasons, such as to allow for project phases not evenly divisible with 12-month increments or to provide program personnel with logical decision points to evaluate whether the project should proceed.

III. Eligibility Information

General

To be considered for substantive evaluation, an applicant ‘s submission must meet the criteria set forth below. If the application does not meet these initial requirements, it will be considered non-responsive, removed from further evaluation, and ineligible for any award.

Eligible Applicants

i. Domestic Entities The proposed prime recipient and subrecipient(s) must be domestic entities. The following types of domestic entities are eligible to participate as a prime recipient or subrecipient of this FOA:

1. Institutions of higher education;

2. For-profit entities;

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3. Non-profit entities; and

4. State and local governmental entities, and Indian tribes nations.

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; have majority domestic ownership and control;

and have a physical place of business in the United States.

DOE/NNSA FFRDCs are eligible to apply for funding as a subrecipient but are not eligible to apply as a prime recipient. NETL is not eligible for award under this announcement and may not be proposed as a subrecipient on another entity’s application. An application that includes NETL as a prime recipient or subrecipient will be considered non-responsive.

Non-DOE/NNSA FFRDCs are eligible to participate as a subrecipient but are not eligible to apply as a prime recipient.

Federal agencies and instrumentalities (other than DOE) are eligible to participate as a subrecipient but are not eligible to apply as a prime recipient.

Entities banned from doing business with the United States government, such as entities debarred, suspended, or otherwise excluded from or ineligible for participating in Federal programs, are not eligible.

Nonprofit 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.

ii. Foreign Entities

In limited circumstances, DOE may approve a waiver to allow a foreign entity to participate as a prime recipient or subrecipient. A foreign entity may submit a Full Application to this FOA, but the Full Application must be accompanied by an explicit written waiver request. Likewise, if the applicant seeks to include a foreign entity as a subrecipient, the applicant must submit a separate explicit written waiver request in the Full Application for each proposed foreign subrecipient.

The “Waiver Requests: Foreign Entity Participation as the Prime Recipient and Performance of Work in the United States” Appendix lists the information that must be included in a foreign entity waiver request. The applicant does not have the right to appeal DOE’s decision concerning a waiver request.

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iii. Federally Funded Research and Development Centers and National Laboratories

DOE/National Nuclear Security Administration (NNSA) Federally Funded Research and Development Centers (FFRDCs) and National Laboratories (NL) are eligible to apply for funding as a Subrecipient (only) but are not eligible to apply as a Prime Recipient. Non-DOE/NNSA FFRDCs and National Laboratories are eligible to apply for funding as a Subrecipient but are not eligible to apply as a Prime Recipient.

NETL is not eligible for award under this announcement and may not be proposed as a subrecipient on another entity’s application. An application that includes NETL as a prime recipient or subrecipient will be considered non-responsive.

Authorization. The cognizant contracting officer for the DOE/NNSA FFRDC/NL or the non-DOE/NNSA Federal agency sponsoring the FFRDC/NL contractor must authorize in writing the use of the FFRDC/NL on the proposed project and this authorization must be submitted with the application. The use of a FFRDC/NL must be consistent with its authority under its award and will not place the laboratory in direct competition with the domestic private sector.

The following wording is acceptable for this authorization:

"Authorization is granted for the [Name] Laboratory to participate in the proposed project. The work proposed for the laboratory is consistent with or complimentary to the missions of the laboratory, will not adversely impact execution of the [DOE/NNSA/or FEDERAL AGENCY] assigned programs at the laboratory, and will not place the laboratory in direct competition with the domestic private sector."

DOE will NOT fund DOE/NNSA FFRDCs participating as a subrecipient through the DOE field work authorization process. DOE will NOT fund non-DOE/NNSA FFRDCs through an interagency agreement with the sponsoring agency.

Therefore, the prime recipient and FFRDC are responsible for entering into an appropriate subaward that will govern, among other things, the funding of the FFRDC portion of the work from the prime recipient under its DOE award. Such an agreement must be entered into before any project work begins.

The applicant should prepare the budgets using rates appropriate for funding the FFRDCs through subawards. The applicant’s cost share

DE-FOA-0003017 Page 25 of 135 requirement will be based on the total cost of the project, including the applicant’s, the subrecipient’s, and the FFRDC’s portions of the project.

Responsibility. The applicant, if successful, will be the responsible authority regarding the settlement and satisfaction of all contractual and administrative issues, including but not limited to, disputes and claims arising out of any agreement between the applicant and the FFRDC/NL.

iii. Federal Entities

Federal agencies and instrumentalities (other than DOE) are eligible to apply for funding as a Subrecipient but are not eligible to apply as a Prime Recipient.

iv. Foreign Entities

Foreign entities,…