FundOpp_DE-FOA-0003627_Amd_000002.pdf

Financial Assistance Notice of Funding Opportunity

Part 1

Department of Energy (DOE) Hydrocarbons and Geothermal Energy Office Improved Oil and Gas Recovery and Produced Water Management Technologies Notice of Funding Opportunity Number: DE-FOA-0003627

Application due: September 08, 2026, 5:00 p.m. ET

Modifications All Modifications to the Notice of Funding Opportunity (NOFO) are highlighted in green, in the body of the NOFO

Mod.

No.

Date Description of Modification

000001 07/06/2026 Revised the Application due date from October 05, 2026, to September 08, 2026.

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000002 07/10/2026 • Revised Section II Eligibility, C. Cost Sharing, 1. Cost Share Requirements - removed cost share requirement for demonstration level projects.

• Revised Section III Program Description, D. Topic Areas,

1. Topic Area 1a, 2. Topic Area 1b, 3. Topic Area 1c, 4.

Topic Area 2 - revised to clarify letter(s) of intent from industry partner(s) are required at the time of application and letter(s) of commitment will be required prior to the actual award if selected for award negotiation.

• Revised Section III Program Description, D. Topic Areas,

2. Topic Area 1b, 3. Topic Area 1c, 4. Topic Area 2, -removed the requirement for proposals to include a technoeconomic assessment.

• Revised Section IV. Application Content and Form, C.

Application Content Requirements, 2. Summary of Application Requirements - revised Application Content Requirements Table to include letters of intent and/or commitment are required with the application.

Table of Contents

BEFORE YOU BEGIN

A. Navigating the Notice of Funding Opportunity

I. BASIC INFORMATION

A. Key Facts

1. Funding Details

2. Period of Performance

B. Executive Summary C. Agency Contact Information

II. ELIGIBILITY

A. Eligible Applicants

1. Domestic Entities

2. Foreign Entity Participation

3. Performance of Work in the United States

4. Ineligible Participants

B. Limitation on Number of Concept Papers and Applications Eligible for Review C. Cost Sharing

1. Cost Share Requirements

2. Unallowable Cost Share Sources

D. FFRDC Eligibility Criteria

1. DOE and Non-DOE FFRDCs as a Subrecipient

III. PROGRAM DESCRIPTION

A. Program Purpose B. Program Goals and Objectives C. Expected Performance Goals D. Topic Areas

1. Topic Area 1a – Field Test Site Research and Development of Technologies for Enhanced Recovery from Unconventional Oil and Gas Reservoirs

2. Topic Area 1b – Advanced Characterization of Fracture Propagation, Proppant Behavior, and Well Diagnostics

3. Topic Area 1c – Enhanced Recovery of Oil and Gas from Unconventional Reservoirs Using CO2

4. Topic Area 2 – Advanced Field-Testing of Multi-Scale Produced Water Treatment Technologies &

Processes E. Applications Specifically Not of Interest F. Statutory Authority

IV. APPLICATION CONTENT AND FORM

A. Use and Disclosure of Application Information B. Summary C. Application Content Requirements

1. Covered Individual Definition, Designation, and Responsibility

2. Summary of Application Requirements

3. Impacted Indian Tribes Documentation

4. Technical Volume

5. Biographical Sketch

6. Current and Pending (Other) Support

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D. Additional Requirements

1. Buy America Preference for Infrastructure Projects

V. SUBMISSION REQUIREMENTS AND DEADLINES

A. Submission Date and Times B. Intergovernmental Review

VI. APPLICATION REVIEW INFORMATION

A. Standards for Application Evaluation B. Responsiveness Review C. Review Criteria

1. Compliance Criteria

2. Technical Review Criteria

D. Other Selection Factors

VII. SELECTION AND AWARD NOTICES

VIII. AWARD ADMINISTRATION INFORMATION

A. Post-Award Requirements and Administration

1. Government Rights in Data

IX. OTHER INFORMATION

A. Technology Readiness Levels B. Treated Produced Water Reference Thresholds by Beneficial Use Table

1. Agricultural Use — Irrigation of Non-Edible Crops, Forage, and Fiber

2. Livestock and Wildlife Watering

3. Surface-Water Discharge (NPDES Permit)

4. Aquifer Recharge (Underground Sources of Drinking Water)

5. Industrial Reuse — Cooling, Boiler Feed, and High-Purity Process Water

6. References (Established Sources Cited)

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Notice of Funding Opportunity, Part 1

Before You Begin

A. Navigating the Notice of Funding Opportunity

To reduce the burden on applicants in the Notice of Funding Opportunity (NOFO) process and limit the length of the NOFO information requests, we separated the NOFO into two parts.

The NOFO Part 1 describes the DOE program goals and evaluation criteria, eligibility, and other components specific to each funding opportunity. NOFO Part 2 includes the fixed DOE requirements that generally do not change from NOFO to NOFO, including standard information for the application phase, expectations for award negotiations, and post-award requirements. You must review both parts before applying. To assist you in the process, you will find references throughout this document to additional information in Part 2.

You must also take several one-time actions before applying. Some of these actions may take several weeks, so be sure to allow yourself enough time to complete them. If you do not complete all required steps, it could interfere with application and negotiation deadlines or your ability to receive an award if selected. If you already completed these one-time registrations, make sure they are active and up to date. All registrations are free. You can find additional information about registration in NOFO Part 2, Submission Requirements and Deadlines.

Hyperlinks are provided for the applicant’s ease of reference. Links, and the information contained in them, may change over time. It is up to an individual applicant to make sure that they have the current information that is contained in the links.

This announcement is published with NOFO Part 2 Version 4.0.

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I. Basic Information A. Key Facts Issuing Agency

Department of Energy, Hydrocarbons and Geothermal Energy Office, Divisions of Production & Transportation and Storage

Funding Opportunity Title

Improved Oil and Gas Recovery and Produced Water Management Technologies

Announcement Version

Initial Announcement

Funding Opportunity Number

DE-FOA-0003627

Funding Instrument

Cooperative Agreements or Other Transaction Agreement

Expected Total Available Funding

Federal Funds – Up to $150,000,000 Cost Share Funds – Minimum 20% - $37,500,000 Total Project Funds - $187,500,000

Assistance Listing Number and Name

81.089 Fossil Energy Research and Development

Announcement Type

Research and Development

Funding Opportunity Description

The objective of this Notice of Funding Opportunity (NOFO) is to seek proposals for specific research and development (R&D) projects to improve recovery efficiency from unconventional oil and natural gas reservoirs and to advance technologies for the treatment of flowback and produced water from oil and natural gas production operations.

This NOFO may remain open for up to 72 months, with review cycles possibly occurring approximately every year, while funding lasts. The details of this NOFO (including descriptions of closed Topic Areas) are subject to change in future review cycles.

Program Goals & Objectives

Despite increasing energy demand, recovery efficiency for oil and natural gas from unconventional reservoirs can average less than 10 percent. This NOFO will enable rapid field deployment of a variety of novel technologies and processes related to improving primary and enhanced recovery efficiency with the goal of significantly improving resource recovery and accelerating industry uptake.

KEY DATES

All deadlines are 5:00 p.m. ET unless indicated otherwise

Notice of Funding Opportunity Issue Date:

July 06, 2026

Application Deadline:

September 08, 2026

Anticipated Selection Notification Date:

January 27, 2027

Anticipated Award Date:

May 03, 2027

Estimated Period of Performance:

May 03, 2027 – May 02, 2032

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This NOFO will also support the field testing and validation of water treatment technologies of produced water from oil and natural gas production operations to avoid deep well injection and potential issues with induced seismicity and interaction with underground sources of drinking water.

Topic Areas

Multiple Topic Areas:

• Topic Area 1a: Field Test Site Research and

Development of Technologies for Enhanced Recovery from Unconventional Oil and Gas Reservoirs

• Topic Area 1b: Advanced Characterization of Fracture Propagation, Proppant Behavior, and Well Diagnostics

• Topic Area 1c: Enhanced Recovery of Oil and Gas from Unconventional Reservoirs Using Carbon Dioxide (CO2)

• Topic Area 2: Advanced Field-Testing of Multi-Scale Produced Water Treatment Technologies & Processes

Eligible Applicants

• Domestic Entities (Institutions of higher education; for-profit entities; non-profit entities; state and local government entities and Indian Tribes) eXCHANGE URL and Helpdesk https://netl-exchange.energy.gov NETL-ExchangeSupport@hq.doe.gov

NOFO URL and Email

DOE: NETL eXCHANGE: Funding Opportunities DE-FOA-0003627@netl.doe.gov

1. Funding Details Multiple Topic Areas

Approximate total available funding including all topic areas: Federal Funds – Up to $150,000,000; Minimum 20% Cost Share Funds – $37,500,000 Total Project Funds - $187,500,000

Topic Area 1a: Field Test Site Research and Development of Technologies for Enhanced Recovery from Unconventional Oil and Gas Reservoirs

• Approximate total available funding: Federal Funds – Up to $30,000,000; Minimum 20% Cost Share Funds - $7,500,000; Total Project Funds - $37,500,000

• Approximate number of awards: 0-2

• Approximate dollar amount of individual awards: Federal Funds – Up to $15,000,000;

Minimum 20% Cost Share Funds - $3,750,000; Total Project Funds - $18,750,000

• Minimum cost share required: 20% of the total project costs

• Approximate award project period: 60 months

• Anticipated length of budget periods: 12-24 months https://netl-exchange.energy.gov/ mailto:NETL-ExchangeSupport@hq.doe.gov https://netl-exchange.energy.gov/Default.aspx#FoaIdf196d635-5bfd-4f10-986b-6530099413d1 mailto:DE-FOA-0003627@netl.doe.gov

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Topic Area 1b: Advanced Characterization of Fracture Propagation, Proppant Behavior, and Well Diagnostics

• Approximate total available funding: Federal Funds – Up to $36,000,000; Minimum 20% Cost Share Funds - $9,000,000; Total Project Funds - $45,000,000

• Approximate number of awards: 0-3

• Approximate dollar amount of individual awards: Federal Funds – Up to $12,000,000;

Minimum 20% Cost Share Funds - $3,000,000; Total Project Funds - $15,000,000

• Minimum cost share required: 0% of the total project costs

Topic Area 1c: Enhanced Recovery of Oil and Gas from Unconventional Reservoirs Using

CO2

• Approximate total available funding: Federal Funds – Up to $60,000,000; Minimum 20% Cost Share Funds - $15,000,000; Total Project Funds - $75,000,000

• Approximate number of awards: 0-3

• Approximate dollar amount of individual awards: Federal Funds – Up to $20,000,000;

Minimum 20% Cost Share Funds - $5,000,000; Total Project Funds - $25,000,000

• Minimum cost share required: 20% of the total project costs

Topic Area 2: Advanced Field-Testing of Multi-Scale Produced Water Treatment Technologies & Processes

• Approximate total available funding: Federal Funds – Up to $24,000,000; Minimum 20% Cost Share Funds - $6,000,000; Total Project Funds - $30,000,000

• Approximate number of awards: 0-2

• Approximate dollar amount of individual awards: Federal Funds – Up to $12,000,000;

Minimum 20% Cost Share Funds - $3,000,000; Total Project Funds - $15,000,000

• Minimum cost share required: 20% of the total project costs

2. Period of Performance

We anticipate making awards under multiple budget periods. If applicable, project continuation will depend on available funding and our Go/No-Go decision which will be made at the conclusion of a budget period. You can find a complete list of post-award requirements and more information on the Go/No-Go review in NOFO Part 2, Award Administration Information.

Funding for all budget periods, including the initial budget period, is not guaranteed.

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B. Executive Summary This NOFO directly supports the directives of President Trump’s 1Executive Order

14154, titled “Unleashing American Energy” and 2Secretarial Order “Unleashing the Golden Era of Energy Dominance” Its primary goal is to significantly enhance the efficiency and water management issues of domestic oil and natural gas production.

The NOFO focuses on two critical areas of research and development (R&D). First, it seeks innovative proposals to boost recovery efficiency from unconventional oil and natural gas reservoirs. While global energy demand continues to rise, current recovery efficiency from these crucial unconventional resources frequently fall below 10 percent. This funding opportunity aims to accelerate the field deployment of novel technologies and processes designed to improve recovery, with the ultimate objective of substantially increasing resource recovery and promoting rapid industry adoption.

Second, the NOFO will advance technologies for the treatment of flowback and produced water generated during oil and natural gas production. A significant challenge in the industry is the sustainable management of this water, which is often disposed of through deep well injection.

This practice can lead to concerns regarding induced seismicity and potential contamination of underground sources of drinking water. Therefore, this NOFO will support the field testing and validation of advanced water treatment technologies, aiming to provide viable alternatives to deep well injection and mitigate associated water management issues.

This NOFO may, at DOE’s discretion and contingent on availability of funding, remain open for up to 72 months, with review cycles occurring approximately every year. The potential for multiple open periods is meant to accommodate the community of applicants, who may need time to find the appropriate mix of partners to develop effective teams, to identify high potential field sites, perform critical due diligence on those sites, and establish site access and project partnership commitments before applying. Requirements for Topic Areas previously closed are subject to change.

C. Agency Contact Information

For questions relating to this NOFO, email us at DE-FOA-0003627@netl.doe.gov.

II. Eligibility To be considered, your submission must meet the criteria set forth below. If your application does not meet these eligibility requirements, it will be removed from consideration for any award. DOE will not determine eligibility for potential applicants before the application due date. The information in this document is specific to this NOFO. You can find the eligibility requirements that apply to all NOFOs in NOFO Part 2, Eligibility.

1 See Unleashing American Energy – The White House 2 See Secretary Wright Acts to “Unleash Golden Era of American Energy Dominance” | Department of Energy mailto:DE-FOA-0003627@netl.doe.gov https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/ https://www.energy.gov/articles/secretary-wright-acts-unleash-golden-era-american-energy-dominance https://www.energy.gov/articles/secretary-wright-acts-unleash-golden-era-american-energy-dominance

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A. Eligible Applicants

1. Domestic Entities

The following types of domestic entities are eligible to participate as a recipient or subrecipient of this NOFO:

• Institutions of higher education (as defined in Title 20 U.S.C. § 1001)

• For-profit organizations

• Nonprofit organizations

• State and local government entities

• Indian Tribes (as defined in section 4 of the Indian Self-Determination and Education

Assistance Act, 25 U.S.C. § 5304)3

To qualify as a domestic entity, the entity must be:

• Organized, chartered, or incorporated (or otherwise formed) under the laws of a state or territory of the United States or under the laws of the United States

• Have majority domestic ownership and control

• Have a physical place of business in the United States

Participant Limitations

Participation of the following entities is limited as follows:

• Provided there is no conflict, DOE FFRDCs4 are eligible to apply for funding as a subrecipient but are not eligible to apply as a recipient.

• Non-DOE FFRDCs are eligible to participate as a subrecipient but are not eligible to apply as a recipient

• Federal agencies and instrumentalities (other than DOE) are eligible to participate as a subrecipient but are not eligible to apply as a 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 recipient or subrecipient will be considered non-responsive.

2. Foreign Entity Participation

In general, foreign entities are not eligible to apply as either a recipient or subrecipient.

In limited circumstances, we may approve a waiver to allow a foreign entity to participate as a recipient or subrecipient.

3 “Indian Tribe,” as defined in section 4(e) 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 according to the Alaska Native Claims Settlement Act (85 Stat. 688) [43 U.S.C. § 1601, et seq.], is eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

4 FFRDCs are federally funded research and development centers that conduct research for the U.S. Government. You can find a list of FFRDCs at https://ncses.nsf.gov/resource/master-gov-lists-ffrdc.

https://uscode.house.gov/view.xhtml?req=granuleid:USC-2010-title20-section1001&num=0&edition=2010 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) https://ncses.nsf.gov/resource/master-gov-lists-ffrdc

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A foreign entity may apply to this NOFO, but the application must be accompanied by an explicit written waiver request. Likewise, if you want to include a foreign entity as a subrecipient, you must submit a separate explicit written waiver request in your application for each proposed foreign subrecipient. NOFO Part 2, Application Content Requirements, explains the requirements for submitting a foreign entity waiver request. DOE’s determination of a waiver request is final, and you cannot appeal an adverse decision on a waiver request.

3. Performance of Work in the United States

All work for the awards under this NOFO must be performed in the United States. To request a waiver of this requirement, you must submit an explicit waiver request in the application. Without an approved waiver, such costs will not be allowed under the award.

NOFO Part 2, Application Content Requirements, lists the requirements for submitting a foreign work waiver request.

4. Ineligible Participants

The following entities are ineligible for this NOFO as a recipient, subrecipient, or subcontractor:

• In accordance with § 2 C.F.R 200.214, entities banned from doing business with the U.S. Government, such as entities debarred, suspended, or otherwise excluded from or ineligible for participating in Federal programs (2 C.F.R § 200.214)

• Entities identified on the Department of the Treasury Office of Foreign Assets Control Treasury’s Sanctions Program Specially Designated Nationals list. (OFAC – Sanctions List Service [treas.gov])

• Nonprofit organizations described in section 501(c)(4) of the Internal Revenue Code of 1986 that engaged in lobbying activities after December 31, 1995

Entity of Concern Prohibition

Entities of Concern are prohibited from participating in projects under this NOFO. You can find details and definitions in NOFO Part 2, Eligibility, Other Eligibility Information, Entity of Concern Prohibition.

B. Limitation on Number of Concept Papers and Applications

Eligible for Review You can submit more than one application to this NOFO, provided that each application describes a unique, scientifically distinct project as determined by DOE.

C. Cost Sharing

You must follow through on the estimated cost share commitments you proposed in your application if selected for award negotiations. You can find more information on cost sharing in NOFO Part 2, Eligibility.

https://sanctionslist.ofac.treas.gov/Home/SdnList https://sanctionslist.ofac.treas.gov/Home/SdnList

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1. Cost Share Requirements The cost share must be at least 20% of the total project costs5 for research and development.6 The cost share must be at least 50% of the total project cost for any demonstration level project proposed.

Applications that do not meet the minimum required cost share will be deemed ineligible during the initial compliance review. The cost share must come from nonfederal sources unless otherwise allowed by law.

The cost share percentage is calculated by dividing the cost share by the total allowable project costs for the award. Total allowable project costs include the Government share (including Federal Funded Research and Development Center [FFRDC] costs, if applicable) and cost share. You can find a cost share information sheet and sample cost share calculation in NOFO Part 2, Eligibility—Cost Sharing, Cost Share Calculation Examples.

2. Unallowable Cost Share Sources

The recipient or subrecipients may not use the following sources to meet cost share obligations including but not limited to:

• Cost share derived from Federal sources (unless otherwise authorized by law).

• Cost share that does not meet:

o Requirements set forth in 2 C.F.R. §§ 200.306 and 910.130 o Cost principles set forth in 2 C.F.R. §§ 200.400-476 and 2 C.F.R. §§ 910.352 o For State Energy Programs, requirements set forth in 10 C.F.R. §§ 420

• Cost share derived from the DOE loan program

• Revenues or royalties from the prospective operation of an activity beyond the project period

• Proceeds from the prospective sale of an asset of an activity

• Federal funding or property (e.g., Federal grants, equipment owned by the Federal

Government)

• Expenditures that were reimbursed under a separate Federal program

• Cash or in-kind contributions used to meet cost share requirements for another Federal project or program

• Existing data as an in-kind contribution (e.g., data owned by an entity that is not routinely sold commercially but is instead donated to the project and assigned a value)

5 Total project costs are the sum of the Government share, including Federal Funded

Research and Development Center (FFRDC) costs if applicable, and the recipient share of project costs.

6 Energy Policy Act of 2005, Pub. L. 109-58, sec. 988. Also see 2 C.F.R. §§ 200.306 and 2 C.F.R. §§ 910.130 for additional cost sharing requirements.

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D. FFRDC Eligibility Criteria

1. DOE and Non-DOE FFRDCs as a Subrecipient

As long as no conflict exists, DOE and non-DOE FFRDCs may be proposed as subrecipients on another entity’s application subject to the following guidelines.

Authorization for non-DOE FFRDCs

The Federal agency sponsoring the FFRDC must authorize in writing the FFRDC’s participation on the proposed project, and you must submit this authorization with the application. The FFRDC’s use must be consistent with its authority under its award.

Authorization for DOE FFRDCs

The cognizant Contracting Officer for the FFRDC must authorize in writing the FFRDC’s participation on the proposed project, and you must submit this authorization prior to any award. The FFRDC’s use must be consistent with the contractor’s authority under its award.

Funding, Cost Share, and Sub-Award with FFRDCs

The recipient and FFRDC must enter into an appropriate sub-award agreement that will govern, among other things, how the recipient funds the FFRDC portion of the work under its DOE award. This agreement must be fully executed before the FFRDC starts work directly related to the financial assistance award. The DOE funding office will fund the DOE FFRDC and/or non-DOE FFRDC participating as a sub-awardee under the DOE financial assistance award to the recipient.

You should prepare the budgets in your application using rates that would fund the FFRDCs through sub-awards. Your cost share requirement will be based on the total cost of the project, including the applicant’s, all subrecipient’s, and all FFRDC’s portions of the project.

Responsibility

The recipient is the responsible authority for settling and satisfying all contractual and administrative issues, including but not limited to disputes and claims arising out of any agreement between the recipient and the FFRDC.

Limit on FFRDC Effort

The FFRDC effort, in aggregate, must not exceed 20% of the total project cost.7

III. Program Description

A. Program Purpose

Despite increasing energy demand, recovery efficiency from unconventional oil and natural gas reservoirs can average less than 10 percent. Rapid field testing of a variety of novel

7 Total project cost is the sum of the Government share, including FFRDC costs if applicable, and the recipient share of project costs.

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In 2025, the Permian Basin was estimated to have produced approximately 22 million barrels per day of water associated with oil and natural gas production (produced water). The continued increase in water cut from Permian Basin wells highlights the key need for highly scalable technologies for produced water treatment and the need for opportunities for the beneficial use of treated produced water to avoid the need for deep well injection disposal and the related potential for induced seismicity and interaction with underground sources of drinking water.

The Advanced Oil and Gas Production Research program within the HGEO is addressing these challenges through the release of this NOFO DE-FOA-0003627, titled “Improved Oil and Gas Recovery and Produced Water Management Technologies.” This NOFO aims to help the U.S. oil and natural gas industry achieve two important objectives: (1) improve the recovery efficiency of U.S. unconventional oil and natural gas resources and (2) improve the efficiency of processes for managing, treating and reusing oilfield water produced during the development of such resources.

In order to meet the requirements of President Trump’s Executive Order 14154, titled

“Unleashing American Energy” and Secretarial Order “Unleashing the Golden Era of Energy Dominance,” this NOFO seeks proposals for specific R&D projects to improve recovery efficiency from unconventional reservoirs and to advance technologies for the treatment and beneficial use of flowback and produced water from oil and natural gas production operations, in support of lowering energy costs for the American consumer, supporting liquified natural gas exports to American allies, and continued American energy dominance.

This NOFO supports the goals laid out above by focusing on field deployment and validation of a variety of transformational technologies, tools, and processes that will accelerate rapid industry uptake of solutions for improving hydrocarbon resource recovery and water management practices. The cooperative agreements funded through this NOFO will leverage industry collaboration to provide robust data and improved “best practices” for more effective domestic resource development.

B. Program Goals and Objectives

This NOFO is looking for applications to address programmatic objectives to improve oil and natural gas production volume by increasing recovery efficiency in unconventional reservoirs and transforming produced water into an economic resource. These objectives will be addressed through the development, field deployment, and validation of advanced technologies, tools, and processes through projects supported by industry collaboration. Detailed technical descriptions of the topic areas are provided in the sections that follow.

Specifically, this NOFO seeks proposals for research focused on improving oil and natural gas recovery efficiency that include field deployment and validation of (1) improved hydraulic fracturing methods and process characterization that may include alternative working

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Novel enhanced oil and natural gas recovery technologies and processes may include, but are not limited to, the injection of supercritical or gaseous carbon dioxide (CO2), various hydrocarbon mixtures and/or surfactants, and the application of advanced fracturing or refracturing fluids, proppants, and methods.

Additionally, this NOFO seeks proposals to advance oilfield produced water management and treatment methods that could include field deployment and testing of improved multi-scale produced water treatment technologies (Topic Area 2).

Field deployment and validation of multi-scale produced water treatment technologies and processes will focus on the objective of developing a centralized, multi-stage water treatment facility using customizable treatment trains to produce different levels of treated effluent for a variety of beneficial use purposes. Such a facility will target a broad range of contaminants, including solids, chemical impurities, and biological components.

The NOFO will seek to improve oil and natural gas recovery efficiency in unconventional reservoirs through:

• Enhanced oil recovery (EOR) or enhanced gas recovery (EGR) field-based R&D to validate the effectiveness of injectants such as surfactants, or other fluids/additives (not CO2) during huff-n-puff (HnP) or similar processes. (Topic Area 1a)

• Field test sites focused on demonstrating novel techniques for improving production from unconventional oil and natural gas reservoirs. (Topic Area 1a)

• Field test site investigations focused on advanced characterization of fracture propagation, proppant transport and placement, enhanced diagnostics, and well completion design “best practices.” (Topic Area 1b)

• Field deployment and validation of advanced refracturing, conformance control, and well completion technologies focused on improving recovery efficiency in unconventional oil and natural gas reservoirs. (Topic Area 1b)

• Field based R&D on the use of supercritical carbon dioxide (scCO2) and gaseous CO2 in HnP treatments or in pattern floods to enhance oil recovery or gas recovery from unconventional reservoirs. Such field-based R&D is to be focused on providing significant new understandings of the relationships among fluid type, fluid injection rate, injection pressure, reservoir pressure, injection volume, soak time, conformance, flowback protocols and incremental recovery. (Topic Area 1c)

The NOFO will also seek to support the field testing and validation of water treatment technologies to support beneficial use of flowback and produced water through:

• Large-scale deployable solutions with integrated approaches. Field based R&D on pilot-scale produced water treatment technologies and processes through advanced field-testing methods for large scale (15,000 to 50,000 barrels of water per day) treating over a period longer than 1 year (not including design or construction time).

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Development of a centralized, multi-stage water treatment facility using customizable treatment trains to produce different levels of treated effluent for a variety of beneficial use purposes. Such a facility will be capable of targeting a broad range of contaminants, including solids, chemical impurities, and biological components.

C. Expected Performance Goals

Overarching performance goals for all topic areas target the Office of Oil and Gas program objectives, executed through a structured, well-informed, stage-gate approach that includes multiple budget periods.

The key performance goals for Topic Areas 1a, 1b, and 1c projects include:

• Field-based technology readiness levels (TRLs) of 5 at project start and a minimum of 7 at project end;

• Detailed techno-economic assessment of the costs, potential benefits, and practical challenges of wider deployment of the demonstrated technologies, tools, and processes, completed as part of the cooperative agreement, based on a knowledgeable assessment of current and future industry trends;

• Evaluation of the weighted impact on overall recovery efficiency of the multiple technologies, tools, and processes deployed during the project.

The key performance goals for Topic Area 2 cooperative agreements include:

• Field-based TRLs of 5 at project start and a minimum of 7 at project end;

• Detailed techno-economic assessment of the costs, potential benefits, and practical challenges of wider deployment of the demonstrated technologies, tools, and processes, completed as part of the cooperative agreement, based on a knowledgeable assessment of current and future industry trends;

• Evaluation of the scalability and efficiency of the demonstrated produced water treatment technologies when utilized to support an appropriate array of beneficial use opportunities.

Any verifiable metric data for hydrocarbon and water production provided to DOE after completion of the project will be used to analyze effectiveness of technologies in order to accelerate broad industry adoption.

Specific technical performance requirements for each topic area and subtopic are described in NOFO Section III.D (Topic Areas) and application requirements are articulated in NOFO Section IV.C.4 (Application Technical Volume Specific Requirements).

D. Topic Areas There are four Topic Areas in this NOFO:

• Topic Area 1a: Field Test Site Research and Development of Technologies for Enhanced Recovery from Unconventional Oil and Gas Reservoirs

• Topic Area 1b: Advanced Characterization of Fracture Propagation, Proppant Behavior, and Well Diagnostics

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• Topic Area 1c: Enhanced Recovery of Oil and Gas from Unconventional Reservoirs Using CO2

• Topic Area 2: Advanced Field-Testing of Multi-Scale Produced Water Treatment Technologies & Processes

1. Topic Area 1a – Field Test Site Research and Development of Technologies for Enhanced Recovery from Unconventional Oil and Gas Reservoirs What are commonly referred to as unconventional reservoirs (i.e., oil-bearing and gas-bearing shales and other tight rocks that are being developed via long horizontal laterals coupled with high volume hydraulic fracturing) are exhibiting recoveries that are often less than 10 percent of the original hydrocarbons in place. For this NOFO, an unconventional oil and gas reservoir is considered a geological formation where hydrocarbons are tightly trapped due to low permeability (typically less than 1 millidarcy [mD]) requiring specialized extraction methods like hydraulic fracturing and horizontal drilling for economic production. Given the fact that these formations are laterally and vertically extensive in multiple producing basins, the potentially producible domestic oil and natural gas resource is significant, and the inability to recover a larger portion of that resource constitutes a major economic loss extending over decades.

Unconventional oil EOR is still in an early development phase, but dozens of pilot projects have been carried out. According to Texas Railroad Commission data, as of August 2024 there had been 37 permitted unconventional oil EOR pilot projects in the Eagle Ford play alone. However, many of these projects have been terminated and many were considered technically and/or economically unsuccessful. Ten unconventional oil EOR pilot projects have been recently concluded or are still in operation in the Permian Basin, and a handful have been conducted or are being planned for the Williston Basin (North Dakota) and others in Oklahoma basins. To the degree that companies have revealed their performance via publications to date, it appears that some have seen technical success, but economic success appears to have been limited.

Nearly all of these EOR pilot projects have involved the cyclic injection of EOR fluids, most often natural gas, which is often referred to as HnP. Many pilot projects have had serious problems with gas migration into natural or created fracture systems, bypassing the shale matrix and preventing the bottomhole pressure buildup required to reach minimum miscibility pressure and enable EOR.

Unconventional oil producers have been testing a variety of fluids for their effectiveness in HnP EOR applications: rich gas, propane, NGLs, water-alternating-gas, rich gas plus surfactant combinations, etc. Understanding the best approach for using these injectants in HnP applications in different geologic situations (e.g., soak times, injection rates, injectant volumes, pressures) remains an important research topic.

The potential for enhanced gas recovery by gas injection in shale plays has been the subject of numerical simulation modeling but limited pilot testing. Shale gas reservoirs containing heavier hydrocarbon fractions (wet-gas and liquid-rich reservoirs) are the most likely potential candidates for enhanced recovery due to the higher added value of condensates, when compared to natural gas. Methane (CH4), nitrogen (N2) and carbon dioxide (CO2; not of interest

Version 4.0 Page 18 of 58 for this Topic Area – see Topic Area 1c) injection in both HnP and pattern flooding operation modes has been performed. The mechanism of production enhancement for each gas varies:

CO2 can preferentially adsorb into the shale matrix, releasing hydrocarbons, N2 injection induces the release of hydrocarbons solely by partial pressure reduction, and CH4 also prompts desorption of heavier hydrocarbons by partial pressure reduction.

The objective of Topic Area 1a is to demonstrate and validate the use of novel methods for improving oil recovery from unconventional oil reservoirs and for improving gas recovery from unconventional gas reservoirs.

Research efforts of interest include:

• Field based R&D of any of a variety of injectants in HnP treatments or in pattern floods to improve oil recovery or gas recovery from unconventional reservoirs. Such field based R&D to be focused on providing significant new understandings of the relationships among fluid type, fluid injection rate, injection pressure, reservoir pressure, injection volume, soak time, conformance, flowback protocols and incremental recovery.

• Field based R&D of novel treatments and techniques for improving production from unconventional oil and natural gas reservoirs, including but not limited to improved completion, conductivity, and/or conformance.

Proposals must include the following:

• Estimation of the impact of the proposed project on recovery and economic metrics including explanation of the approach and data used in making the estimation (prior lab tests, prior field pilot tests, prior production or economic simulations, economic information, sensitivity analyses, etc.).

o Applications should describe anticipated level of improvement in the estimated ultimate recovery (EUR) uplift and percentage increase in the recovery factor that could result from the proposed project (during project operations and at future commercial operation scale).

o Applications should define the economic pathway to viability for the technologies and/or approaches proposed as part of the project. This should include both estimated cost of implementation at the project pilot scale for the cost per incremental unit recovered ($/Δbbl and/or $/ΔMcf) but also anticipated cost per incremental unit recovered ($/Δbbl and/or $/ΔMcf) for future commercial operations (assuming implementation of researched approaches and technologies and taking into consideration factors such as distance from injectant source in relation to oil/gas reservoirs).

• In addition to initial projections of these factors within the proposal, the application should describe plans for updating these factors based on results seen from the project (including definition of the data to be collected and methods to be used in updating / refining projections)

• Evidence (letter(s) of intent commitment) at the time of application and letter(s) of commitment prior to award if selected) from an industry partner or partners willing to permit access to and use of a well or wells and approval to obtain, analyze, and publish data collected as part of the project.

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• Narrative of the initial plans/scope for field deployment and validation protocols of all utilized techniques as well as description of how the project would advance to detailed final plans during the initial phase of the project. Note: Development / project team acceptance of detailed plans (in coordination with Department of Energy representatives) should be reflected as a go/no-go point within the project scope

• Methodology for validating the impact of technologies deployed during the project on overall recovery efficiency and improvement.

• Evidence of a detailed understanding of the geological character of the proposed injection area, relevant production history, core and log data, and well completion histories on wells involved in the pilot and offsets.

• If employing HnP operations, a detailed discussion on the planned number of injection, soak [if applicable] and production cycles per well (multiple cycles anticipated) that would sufficiently demonstrate enhanced recovery throughout the project lifecycle.

• Detailed discussion on how the planned number of HnP cycles was determined.

• Discussion of any planned project approach for: geometry mapping of the targeted resource volumes initially in place, geometry mapping of resource volumes produced, the resource depletion domain architecture in relation to the stratigraphy and well/fracture geometry architecture, and volumetric mapping of the remaining resource domain architecture.

• Plans for the injection of volumes sufficient to definitively determine the technical and economic potential of any flooding method being pilot tested.

• Plans for long term production data gathering, both pre- and post-injection, including well testing, logging (including enhanced flow evaluation), and produced fluid sampling and monitoring.

• Detailed discussion of the anticipated injectant source for the project, the location of that source relative to the project site, the planned transportation method to move injectant to the project site, compatibility of the injectant with the field site reservoir, and any characteristics of the injectant and any associated contaminants that could affect project success.

• Well level production allocation plan that includes details of proposed methods, Quality Assurance/Quality Control (QA/QC), and uncertainty bounds.

• Detailed discussion of how artificial intelligence/machine learning/data analytics, model validation, and data governance will be used to add value to the proposed project.

Technologies proposed for research under this subtopic should exhibit a beginning TRL of 5 (laboratory scale, similar system validation in relevant environment), and the proposed research plan should support delivering an ending TRL of 7 (full-scale, similar [prototypical] system demonstrated in relevant environment). Note that the TRLs listed are for the project’s proposed technologies and not necessarily the overall field test site. See Other Information for TRL table.

Applications must include a letter(s) of intent commitment from industry partner(s) providing access to a relevant field site(s) for testing. [Letter(s) of commitment will be required prior to actual award if selected for award negotiation.] Test sites must be representative of the operating conditions of real-world oil and natural gas production facilities in unconventional plays as applicable to the proposed technology. Location of the field site must be within the

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United States. Applications that do not provide one or more letters of intent commitment from an industry partner(s) for access to a commercial site and/or well for field testing will be deemed non-responsive under the NOFO and will not be reviewed.

Applicants are encouraged to propose project teams comprised of multiple organizations that include industry participants, academic research organizations, technology developers, and service providers.

Fundamental laboratory research related to a proposed field pilot employing methods in a specific play or plays may be part of the overall proposal, but such research must be accompanied by a field test to validate the fundamental research.

While applications may propose the use of DOE funds for prototype deployment and/or research activities, DOE funds shall not be used for site development activities (e.g. production well drilling) on awards resulting from this Topic Area. Also, proposed projects should not directly include the drilling of new oil/gas production wells and/or new hydraulic fracturing for a new oil/gas well due to potential NEPA/environmental issues. Proposed projects could include drilling of monitoring/observation well(s) for diagnostics related to the proposed project contingent on adequately addressing NEPA/environment issues and the well(s) being necessary for the proposed research project while also not being directly related to commercial production/revenue. Proposed projects should try to use existing wells as applicable.

2. Topic Area 1b – Advanced Characterization of Fracture Propagation, Proppant Behavior, and Well Diagnostics Although the development of unconventional oil and natural gas plays has grown dramatically over the past two decades, there remains a distinct lack of understanding related to where operators are leaving recoverable resources behind after well production has declined.

Understanding and characterizing the reservoir domains where depletion has occurred and where hydrocarbon saturations remain undrained is key to increasing overall recovery of the resource beyond the less-than-10% levels currently achieved.

Some of the most important questions are related to proppant transport and placement;

we still do not know for certain where the proppant is going and how it is distributed within fractures and across the stimulated reservoir volume. Hydraulic geometries of the created fractures are known to be very large, but proppant transport, distribution, and fracture conductivity within the hydraulic geometry are not well understood. Based on what has been observed in limited field experiments, a large portion of the hydraulic dimensions of fractures are not being effectively propped.

Some wells, even after being fractured multiple times, still exhibit virgin reservoir volumes, an indication of our limited understanding of how many fractures are created, what their geometries actually are, and how much of the geometries are “effective” and contributing to production. Post project coring at DOE’s controlled field-based hydraulic fracturing research program at the Hydraulic Fracturing Test Site (HFTS) 1 showed virgin pressure and little proppant. Quasi-distributed pressure monitoring at the HFTS 2 site showed limited depletion of some of the target stratigraphy, and significant “out-of-zone” resource depletion beyond the

Version 4.0 Page 21 of 58 targeted stratigraphy. There appears to be a lot of unstimulated rock volume surrounding unconventional fracked wells and the depletion of architecture domain is not well understood.

Understanding this depletion domain is critical for assessing EOR opportunities and application designs.

The primary objective of Topic Area 1B is to carry out field test site investigations focused on advanced characterization of fracture propagation, proppant transport and placement, enhanced diagnostics, scientifically based well completion design “best practices”, and characterizing the depletion domain architectures during production.

Research efforts of interest include:

• Field based R&D novel fracturing fluids, additives and techniques, as well as novel proppants (including but not limited to lightweight, ultralightweight and neutrally buoyant proppants), to increase the effectiveness of hydraulic fracturing and/or refracturing treatments. Focus areas could include novel combinations of fluids, proppants and treatment techniques to demonstrate and validate methods to ensure fractures are effectively propped across the majority of the created fracture area.

• Field based R&D of technologies related to improving conformance control, zonal fluid flow technologies, and completion technologies that can improve stimulation distribution effectiveness, increase recovery efficiency, and/or control fluid flow within the wellbore and fracture systems in unconventional reservoirs. Focus areas for technology development could include, but are not limited to, conformance control, and advanced fluid flow control and optimization for each stage of a well’s life to reduce the impact from frac hits and other disruptive effects related to recovery efficiency, in addition to permanent and/or temporary downhole technologies to enhance recovery efficiency, reduce costs and improve personnel safety.

• Field based R&D of technologies related to improving fracture diagnostics and modeling content to improve hydraulic fracture geometry that is closely tied to recovery efficiency.

• Innovative and breakthrough technologies for improved subsurface characterization, visualization, and diagnostics of the fracturing process.

• Improved technologies for characterization and/or monitoring of fracture propagation.

• Improved…