FundOpp_DE-FOA-0003634.pdf

Financial Assistance

Notice of Funding Opportunity Part 1

Department of Energy (DOE) Hydrocarbons and Geothermal Energy Office Advancing Oil and Natural Gas Production and Delivery Notice of Funding Opportunity Number: DE-FOA-0003634 Application due: September 22, 2026, 5 p.m. ET

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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 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

Topic Area 1: Enhanced Resource Utilization and Production Technologies Topic Area 1a: Laboratory Validation of Catalysts and Unit Operations Topic Area 1b: Field Validation of Full System Prototypes Topic Area 2: Resilient Infrastructure Technology Enhancement Topic Area 3: Hydrocarbon Infrastructure Test Sites (HITS)

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

D. Additional Requirements

1. Buy America Preference for Infrastructure Projects

V. SUBMISSION REQUIREMENTS AND DEADLINES

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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. Acronyms

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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 don’t 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, Required Registrations.

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 (DOE), Hydrocarbons and Geothermal Energy Office (HGEO), Division of Transport and Storage

Funding Opportunity Title

Advancing Oil and Natural Gas Production and Delivery

Announcement Version

Initial

Funding Opportunity Number

DE-FOA-0003634

Funding Instrument

Cooperative Agreements or Other Transaction Agreement

Expected Total Available Funding

$81,875,000 ($65,500,000 Federal Funding, $16,375,000 Cost Share)

Assistance Listing Number and Name

81.089 Fossil Energy Research and Development

Announcement Type Research and Development

Funding Opportunity Description

DOE's HGEO is seeking applications to advance cost-effective technologies for improving the efficiency, reliability, and resilience of the United States (U.S.) oil and natural gas supply chain. This funding opportunity spans research and development efforts focused on enhancing resource utilization, modernizing infrastructure, and accelerating digital transformation within the sector.

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

This NOFO aims to achieve significant advancements across the U.S.

oil and natural gas supply chain (from extraction to processing, transport, and end-use) by focusing on specific, measurable outcomes:

increasing natural gas utilization through technologies that capture and convert previously flared or vented gas, thereby recapturing valuable resources and reducing waste; reducing economic losses via innovative capture and re-use solutions; enhancing equipment performance and longevity in midstream and downstream operations;

and decreasing operational costs through automation, predictive maintenance, and optimized resource management. These efforts aim to reduce wasted natural gas, improve infrastructure efficiency and reliability, accelerate the adoption of advanced digital technologies such as data analytics, artificial intelligence (AI), machine learning (ML), Digital Twins, Internet of Things (IoT), and Edge Computing.

KEY DATES

All deadlines are 5 p.m. ET

Notice of Funding Opportunity Issue Date:

July 22, 2026

Application Deadline:

September 22, Anticipated Selection Notification Date:

December 11, Anticipated Award Date:

March 1, 2027

Estimated Period of Performance for Topic Area 1a:

March 1, 2027– February 28, 2029

Estimated Period of Performance for Topic Areas 1b & 2:

February 28, 2031

Estimated Period of Performance for Topic Area 3:

February 28, 2032

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Collectively, these outcomes will reinforce the U.S. position as a global leader in energy technology and responsible hydrocarbon resource management, ensuring a stable, affordable, and secure American energy future while prioritizing domestic innovation and job creation.

Topic Areas

Topic Area 1: Enhanced Resource Utilization and Production Technologies (ERUPT) o Topic Area 1a: Laboratory Validation of Catalysts and Unit Operations o Topic Area 1b: Field Validation of Full System Prototypes

Topic Area 2: Resilient Infrastructure Technologies Enhancement (RITE)

Topic Area 3: Hydrocarbon Infrastructure Test Sites (HITS)

Eligible Applicants Domestic Entities (Institutes of higher education; for-profit entities; non-profit entities; state and local government entities and Indian Tribes) eXCHANGE URL and Helpdesk

DOE: NETL eXCHANGE: Funding Opportunities NETL-ExchangeSupport@hq.doe.gov

NOFO URL and Email

NETL eXCHANGE FOR DE-FOA-0003634 NOFO3634@netl.doe.gov

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1. Funding Details

Multiple Topic Areas Approximate total available funding including all Topic Areas: $65,500,000 in Federal funding

Topic Area 1: Enhanced Resource Utilization and Production Technologies

Topic Area 1a: Laboratory Validation of Catalysts and Unit Operations

Approximate total available Federal funding: $7,500,000 Approximate number of awards: 5 Approximate Federal dollar amount of individual awards: $1,500,000 Minimum cost share required: 20% of the total project costs Approximate award project period: 24 months Anticipated length of budget periods: 24 months

Topic Area 1b: Field Validation of Full System Prototypes

Approximate total available Federal funding: $18,000,000 Approximate number of awards: 3 Approximate Federal dollar amount of individual awards: $6,000,000 Minimum cost share required: 20% of the total project costs Approximate award project period: 48 months Anticipated length of budget periods: 18 to 24 months

Topic Area 2: Resilient Infrastructure Technologies Enhancement

Approximate total available Federal funding: $12,000,000 Approximate number of awards: 4 Approximate Federal dollar amount of individual awards: $3,000,000 Minimum cost share required: 20% of the total project costs Approximate award project period: 48 months

Topic Area 3: Hydrocarbon Infrastructure Test Sites

Approximate total available Federal funding: $28,000,000 Approximate number of awards: 4 Approximate Federal dollar amount of individual awards: $7,000,000 Minimum cost share required: 20% of the total project costs Approximate award project period: 60 months

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Topic Area

Number of

Awards

Cost Share

Federal Funding

Per Award*

Cost Share Per

Award**

Total Funding

Per Award

Total Federal

Funding Per Topic Area

Total Cost Share Per Topic Area

Total Funding Per Topic Area

1a 5 20% $1,500,000 $375,000 $1,875,000 $7,500,000 $1,875,000 $9,375,000

1b 3 20% $6,000,000 $1,500,000 $7,500,000 $18,000,000 $4,500,000 $22,500,000

2 4 20% $3,000,000 $750,000 $3,750,000 $12,000,000 $3,000,000 $15,000,000

3 4 20% $7,000,000 $1,750,000 $8,750,000 $28,000,000 $7,000,000 $35,000,000

TOTAL $65,500,000 $16,375,000 $81,875,000

*The Federal funding per award is the maximum amount of Federal funding an award can receive in each Topic Area.

**The cost share per award must meet or exceed 20% of the total award value.

2. Period of Performance

For Topic Area 1a, we anticipate making awards under one budget period. Project continuation will depend on several elements, including satisfactory performance throughout the period of performance and our Go/No-Go decision. 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.

For Topic Areas 1b, 2, and 3, 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.

B. Executive Summary

DOE's HGEO is launching a funding opportunity, "Advancing Oil and Natural Gas Production and Delivery," with the primary goal of driving significant advancements across the U.S. oil and natural gas supply chain (from extraction to processing, transport, and end-use). This program aims to enhance national energy security, economic competitiveness, and technological leadership by improving the efficiency, reliability, and performance of the U.S.

oil and natural gas sector. This will be achieved through several key objectives, including increasing natural gas utilization by capturing and converting flared or vented gas, thereby recapturing valuable resources and reducing waste; reducing economic losses through innovative solutions; enhancing equipment performance and longevity in midstream and downstream operations; and decreasing operational costs using automation and predictive maintenance, data analytics, AI, ML, and optimized resource management. These efforts will also specifically support the responsible development of our nation's abundant unconventional oil and natural gas resources.

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This funding opportunity is designed to engage a broad range of stakeholders committed to advancing hydrocarbon technologies and infrastructure, including researchers, technology developers, industry partners, and entities involved in the oil and natural gas value chain. Eligible applicants include domestic entities such as institutions of higher education, for-profit and non-profit organizations, state and local government entities, and Indian Tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act, 25 U.S.C. § 5304) 0F

1. DOE and non-DOE Federally Funded Research and Development Centers1 F

2 (FFRDCs) are eligible to participate as subrecipients. The program strongly encourages applications that demonstrate a clear path to commercialization and emphasize domestic manufacturing and job creation, reinforcing America's global leadership in energy technology and responsible resource management.

This initiative supports investment in three key Topic Areas: Enhanced Resource Utilization and Production Technologies (ERUPT), including field validation of full system prototypes and cross-cutting technologies for unconventional resources; Resilient Infrastructure Technologies Enhancement (RITE), and Hydrocarbon Infrastructure Test Sites (HITS), emphasizing industry collaboration for field validation. These collective efforts will strengthen the position of the U.S. as a leader in energy technology and responsible resource management, ensuring a stable, affordable, and secure energy future for all Americans.

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 NOFO3634@netl.doe.gov.

1 “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.

2 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.

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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.

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)

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 U.S. or under the laws of the U.S.

Have majority domestic ownership and control Have a physical place of business in the U.S.

Participant Limitations

Participation of the following entities is limited as follows:

Provided there is no conflict, DOE FFRDCs 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 The National Energy Technology Laboratory (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.

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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 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.

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1. Cost Share Requirements The cost share must be at least 20% of the total project costs3 for research and development.4

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 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)

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.

3 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.

4 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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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.5

III. Program Description A. Program Purpose

This funding opportunity aims to drive transformative advancements across the U.S.

oil and natural gas supply chain, contributing significantly to national energy security, economic competitiveness, and technological leadership. It focuses on modernizing infrastructure, minimizing product losses, and enhancing the value and utilization of hydrocarbon resources for the public good, including abundant and affordable energy for all Americans. This program continues to emphasize resilient energy systems and responsible resource management through technological innovation. It builds upon congressional

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

Version 4.0 Page 14 of 52 directives for reducing natural gas losses and advancing data analytics. At the same time, it encourages industry-driven initiatives and technological advancements that lead to measurable reductions in product losses and improved efficiency.

This NOFO supports the goals laid out above by investing in key Topic Areas:

Enhanced Resource Utilization and Production Technologies (Topic Area 1), Resilient Infrastructure Technologies Enhancement (Topic Area 2), and Hydrocarbon Infrastructure Test Sites (Topic Area 3). By doing so, it directly translates technological advancements into tangible benefits for all Americans, including a more stable and affordable energy supply;

increased job opportunities in a technologically advanced energy sector; and a stronger, more reliable infrastructure that underpins economic prosperity and national security.

B. Program Goals and Objectives

This NOFO is seeking applications to address the critical need for improving the efficiency, reliability, and performance of the U.S. oil and natural gas supply chain. The program aims to achieve significant outcomes including the reduction of wasted natural gas, enhanced utilization of challenging hydrocarbon streams (e.g., sour gas, stranded natural gas liquids), modernization of infrastructure to minimize product losses and improve deliverability, and acceleration of digital transformation across the sector. Advancements related to improving efficiency, reliability, and performance will emphasize advanced catalysts, separation technologies, AI, ML, digital twins, and advanced materials to create a more resilient, cost effective and efficient energy system. Successful projects will deliver measurable impacts such as a substantial reduction in flared and vented gas, increased profitability from historically difficult wells, improved infrastructure integrity and efficiency, and enhanced worker safety. These achievements will directly contribute to national energy security and economic competitiveness by lowering operational costs, ultimately benefiting the public good by ensuring a stable and affordable energy supply for all Americans and strengthening the nation's energy independence, as aligned with DOE and the HGEO goals and objectives.

Detailed technical descriptions of the Topic Areas are provided in the sections that follow.

C. Expected Performance Goals

This NOFO is designed to achieve transformative advancements across the U.S. oil and natural gas supply chain. By investing in the technologies outlined in the Topic Areas of this NOFO, the Transport and Storage program anticipates significant, quantifiable impacts that collectively contribute to national energy security, economic competitiveness, and technological leadership.

Performance goals and expected outcomes include:

1. Enhanced resource utilization and economic value:

Substantial reduction in wasted natural gas, aiming to increase its use to 80% by 2035.

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Mitigation of natural gas product loss, and the resulting economic losses associated with flared and vented natural gas, targeting the reduction of approximately $1.5 billion in annual flaring losses.

Increased profitability and production from wells historically limited by high contaminant concentrations (e.g., H2S, natural gas liquids), including unlocking production from an estimated 7,500 remaining wells in the eastern Delaware Basin.

Reduced treatment costs for sour gas by over 20% compared to existing methods, making domestic production more economically viable in challenging reservoirs.

2. Modernized and resilient infrastructure:

Significant improvement in the overall efficiency of the U.S. natural gas delivery system, targeting a 2% increase (from 92% to 94%) by 2030.

Increased system integrity and reliability by addressing chronic issues such as corrosion and product loss, aiming for a 2% to 3% increase in pipeline deliverability due to reduced friction and corrosion impacts.

Enhanced equipment performance and longevity, including a 10% increase in compressor horsepower and performance due to improved equipment efficiency, and a 25% increase in engine thermal efficiency.

Substantial reduction in operational disruptions and maintenance costs, targeting at least a 20% reduction through the integration of digital technologies and predictive analytics.

3. Accelerated digital transformation and operational excellence:

Rapid acceleration of the adoption and deployment of advanced digital technologies such as data analytics, AI, ML, Digital Twins, IoT, and Edge Computing within the upstream and midstream sectors.

Increased saleable hydrocarbon throughput by 10% to 20% and operational expenditure (OPEX) reductions of 15% or more through the validation of integrated digital and physical optimization systems.

Improved operational uptime and drawdown stability by 20% or more and reduced workover frequency and repair costs due to enhanced monitoring and predictive maintenance.

Establishment of standardized datasets and replicable models to de-risk technology adoption, accelerate industry uptake, and facilitate financing, particularly for small and mid-size operators.

Collectively, these outcomes will reinforce the U.S.’ position as a global leader in energy technology and responsible hydrocarbon resource management, ensuring a stable, affordable, and secure energy future.

D. Topic Areas

Topic Area 1: Enhanced Resource Utilization and Production Technologies Topic Area 1 will fund the development, testing, and validation of advanced technologies to improve the utilization of natural gas and natural gas liquids (NGLs) that are currently being lost through operational inefficiencies and/or technology gaps. Specifically, Version 4.0 Page 16 of 52 the targets are natural gas lost to flaring and venting, sour gas that is stranded due to its composition, and NGLs that are stranded due to a lack of effective separation and processing solutions. These challenges will be addressed by projects in two Sub-Topic Areas:

Topic Area 1a: Laboratory Validation of Catalysts and Unit Operations

Over the last 10 years, flaring and venting of natural gas associated with oil production across the U.S. has resulted in a lost monetary value of almost $15 Billion (industrial price). A significant quantity of the Nation’s domestic natural gas resource is wasted when oil production outpaces natural gas infrastructure buildout. Advanced chemical conversion technologies that produce valuable industrial chemicals and materials (e.g., methanol, acetic acid) from natural gas, otherwise flared, could increase natural gas utilization while simultaneously supporting the domestic chemical supply chain.

Over 85% of Permian Basin natural gas contains hydrogen sulfide (H2S) at concentrations up to 100 ppm, and over 40% contains concentrations up to 10,000 ppm.

Handling sour gas requires costly, permit-intensive, specialized pretreating facilities. The costs and complexities can lead to significant volumes of natural gas being left unproduced or flared. Modular sour gas treatment systems, scalable for economic well pad operation, could overcome technical challenges and provide lower-cost solutions, increasing utilization of sour gas streams.

In 2023, approximately 40% of domestic natural gas production was associated gas containing varying amounts of NGLs (e.g., ethane, butane, and propane). High equipment costs for efficient separation and impurity removal often lead operators to utilize lower-cost alternative disposal mechanisms, including flaring these valuable liquid hydrocarbons along with associated gas. Flexible upstream processing solutions are required to improve the economics of full NGL recovery or to enable cost-effective extraction of propane and butane while rejecting ethane into the sales line.

It is anticipated that awarded projects will be required to collect sufficiently detailed cost and performance data to support the scalability and economic viability of the proposed technology solutions.

Topic Area 1a: Laboratory Validation of Catalysts and Unit Operations

The objective of Topic Area 1a is to apply computational approaches (e.g., AI/ML, computational fluid dynamics) and process intensification R&D approaches to rapidly develop and validate new catalysts, reactor systems, and separation technologies—at the laboratory through prototype-scale—to increase the production and deliverability efficiency of hydrocarbons containing high sulfur and/or excess NGLs. Research efforts of interest may include but are not limited to:

Natural Gas Product Loss Employ AI and quantum-scale simulation technologies to design and optimize new catalysts and high-performance support structures (e.g., catalytic

Version 4.0 Page 17 of 52 membranes), identify new molecular configurations, and discover new reaction pathways to convert associated natural gas and/or NGLs into valuable products.

High throughput synthesis and experimental testing of catalysts (e.g., nano-, multi-functional), hybrid reactors (e.g., membranes, microwave plasma), and new chemical pathways (e.g., direct conversion) that will enable decentralized associated gas and/or NGL utilization.

Sour Gas Treatment Solutions

Develop and test new materials and separation technologies with the potential for highly efficient and low-cost treatment of sour gas streams (including H2S and CO2), including novel membranes, advanced sorbents, and new separation operations.

Design and prototype pretreatment equipment and corrosion resistant materials suitable for gas streams with high levels of hydrogen sulfide.

Optimizing NGL Utility

Discover and validate novel gas separation materials and methodologies supporting lower cost NGL recovery.

Explore potential new chemical intermediates and processes capable of lowering the cost of storage, transport, and utilization of excess NGLs from wet natural gas streams.

Validate potential new chemical conversion concepts and marketable products that transform separated NGLs and/or other gas condensates to high value chemicals (e.g., ethylene)

Applications must describe the impact of the proposed project based on laboratory-scale validation of the catalytic reaction, gas treatment process, or NGL recovery and utilization operation. For catalyst development and chemical conversion, this includes direct comparison to a representative industrial catalyst or process as a base case using relevant metrics such as turnover frequency, reaction rate, conversion, percentage yield, and selectivity. Corrosion rates for new material developments for acid gas should be compared to industry-standard corrosion-resistant alloys and coatings currently used for acid gas treatment. For new gas processing methods for acid gas and NGL recovery, relevant metrics such as removal efficiency, mass transfer efficiency, treated gas purity, acid gas slip, and NGL component recovery rates should be compared to existing industrial methods. A 15% or higher improvement in performance metrics is desired for new technologies.

Applications should describe the anticipated level of improvement in overall energy efficiency for chemical conversion reactions or gas processing operations.

Applications should define the potential economic benefits for the new technologies in terms of anticipated profit from industrial chemical production or reduced gas treatment costs.

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Technologies proposed for research under Topic Area 1a should exhibit a beginning Technology Readiness Level (TRL)6 of 3 (technology concept and/or applications formulated) at the time of application submission and the proposed research should support delivering an ending TRL of 5 (component and/or breadboard validation in relevant environment) by the end of the project.

All projects selected under Topic Area 1a will be required to complete a technology maturation plan (TMP) that describes the current TRL of the proposed technology/technologies, relates the proposed work to maturation of the technology, describes the expected TRL at the end of the project, and describes any known post-project R&D necessary to further mature the technology. Projects selected under Topic Area 1a will also be required to complete a techno-economic analysis (TEA) by the end of the project that demonstrates the economic feasibility of the technology/technologies and identifies economic and design hurdles that can be addressed with future research development.

To augment the TMP and TEA, projects selected under Topic Area 1a will be required to implement the DOE developed Adoption Readiness Level (ARL) framework7 focused on technology commercialization, including the utilization of the Adoption Readiness Assessment tool for all technology solutions to be validated in the project. The ARL Framework is complementary to the TRL framework and is focused on identifying risks and opportunities to support the successful commercialization of new technologies.

The objective of Topic Area 1b is field testing across multiple oil and gas (O&G) production basins and well sites to confirm the precommercial validation of new modular decentralized gas conversion systems, sour gas processing, and other innovative direct utilization applications that validate the profitable use of unused or underutilized natural gas streams. Research efforts of interest may include but are not limited to:

Natural Gas Product Loss

Precommercial validation of economic potential (including product take-off, transport, and side product and waste stream disposal) of new advanced reactor concepts operating at decentralized and off-grid locations.

Validation of AI-powered autonomous control schemes for optimal operational efficiency and adaptation to variable well gas streams.

Other on-site innovative energy systems that utilize raw associated streams by other means, such as distributed electrical power generation with grid synchronization, or other valorization opportunities.

6 TRLs are a standardized 1-to-9 scale used by the DOE and other Federal agencies to assess the maturity of a technology. The TRL scale can be found in the Technology Readiness Levels section at the end of this NOFO.

7 The Adoption Readiness Levels framework is a tool to assess the commercialization risks facing a technology as it crosses the research, development, demonstration, and deployment (RDD&D) continuum to reach successful commercialization.

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Sour Gas Treatment Solutions Field testing of innovative sour gas (including H2S and CO2) processing systems capable of achieving output of pipeline quality natural gas and increasing gas takeaway.

New sour gas treatment systems that fully mitigate the requirement for acid gas injection well construction and permitting.

Demonstrating safe and direct use of corrosive sour gas streams for the benefit of operators or the surrounding infrastructure, including distributed electrical power sellback, remote data center support, or other onsite utilization of the thermal content of the sour gas.

Optimizing NGL Utility

Field validation low cost NGL fractionation and recovery systems that offer alternative NGL utilization options based on market conditions.

Testing integrated system designs that valorize “stranded NGLs” with innovative on-site NGL utilization, including fuel use, chemical and refrigeration applications, or chemical conversion to high value chemical intermediates or finished products.

New methods for maximizing stable oil volumes through facility-level natural gas/oil technology advancements that enable increased NGL transport, lower downstream refining costs, and/or improve monetization of crude resources.

Applications must estimate the economics for the proposed field operation, including full consideration of the transport of produced chemicals, acidic or hazardous waste stream disposal, delivery of NGLs, and routing pipeline gas to sale. Overall profitability metrics should include an explanation of the approach and must directly use data generated during well site field testing of the decentralized gas conversion systems, gas processing, or other direct utilization applications of underutilized natural gas sources. Overall targets include 20% reduction in gas treatment costs and an 80% increase in the use of underutilized natural gas sources including flares, acid gas, and wet gas sources.

Applications should describe anticipated level of improvement in the overall profitably of the specific well site where the technology is demonstrated. This includes the estimated total capitalized costs, the fixed and variable operating costs for the new technology, and the expected improvement in wellhead cash flow for the field test well site. This estimation must be contextualized by appropriate sensitivity analysis included for key variables such as production volume, natural gas and chemical market prices, drilling costs, and transport costs. New technologies should target at least a 10% improvement in wellhead cashflow.

Applications should define the economic pathway to viability for the equipment and technologies proposed in the project, including relevant aspects related to scaling catalyst production and commercial mass manufacturing of advanced membrane or other materials.

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Topic Area 1b research and technologies will conclude with field tests to validate performance, confirm practicality, and gather data to verify financial benefits to accelerate adoption by operators and service companies. As such, applications must include a letter of intent from an industry partner providing access to a relevant field site for prototype testing. [Letter(s) of commitment will be required prior to actual award if selected for award negotiation.] Project teams under Topic Area 1b must include a business that intends to pursue the commercialization of the proposed technology if the results of the field tests and economic assessments are viable.

Technologies proposed for research under Topic Area 1b should exhibit a beginning

TRL of 5 (component and/or breadboard validation in relevant environment) at the time of application submission and the proposed research plan should support delivering an ending TRL of 7 (system, subsystem, and/or component deployment and testing in an operational environment) by the end of the project.

All projects selected under Topic Area 1b will be required to complete a TMP that describes the current TRL of the proposed technology/technologies, relates the proposed work to maturation of the technology, describes the expected TRL at the end of the project, and describes any known post-project R&D necessary to further mature the technology.

Projects selected under Topic Area 1b will also be required to complete a TEA by the end of the project that demonstrates the economic feasibility of the technology/technologies and identifies economic and design hurdles that can be addressed with future research development.

To augment the TMP and TEA, projects selected under Topic Area 1b will be required to implement the DOE developed ARL framework focused on technology commercialization, including the utilization of the Adoption Readiness Assessment tool for all technology solutions to be validated in the project. The ARL Framework is complementary to the TRL framework and is focused on identifying risks and opportunities to support the successful commercialization of new technologies.

Topic Area 2: Resilient Infrastructure Technology Enhancement The objective of Topic Area 2 is to develop, validate, and field test advanced technologies to enhance the durability, reliability, and deliverability of the U.S. oil and natural gas supply chain by improving existing facility-level equipment and associated transport infrastructure, while paving the way for next-gen infrastructure. Specifically, the targets are areas of infrastructure that are subject to chronic leaks, corrosion-related failures, and unplanned downtime due to equipment operating failures.

Aging infrastructure and harsh operating environments lead to significant economic losses within the U.S. oil and natural gas supply chain. Nearly $875.3 million in product value is squandered annually due to product losses across the natural gas production, processing, and transportation sectors. Industry faces $1.372 billion in annual costs from corrosion impacts to pipelines, facilities, and equipment. This cost breaks down into $589 million for surface pipelines and facilities, $463 million for downhole tubing, and $320 million in related capital expenditures. This problem is worsening as the industry moves into

Version 4.0 Page 21 of 52 deeper, higher-pressure, and more acidic environments. Furthermore, total annual losses from unplanned equipment failures per plant peaked at about $240 million in FY22, highlighting the financial risk during periods of high commodity prices. Investments in resilient technologies are crucial to mitigate these pervasive issues and improve operational efficiency.

Research efforts and technologies of interest may include but are not limited to:

Development and field validation of novel, high-efficiency engines and compressors, as well as cost-effective compressor retrofit solutions, to reduce product and heat losses, including an increase in compressor horsepower and performance by 10% and engine thermal efficiency by 25%.

Development and field validation of technologies to improve performance and operation of production, processing, and transportation equipment such as storage tanks, dehydrators, valves, piping, and other infrastructure elements, with a target of increasing the overall efficiency of the U.S. natural gas delivery system by 2% (from 92% to 94%) by 2030.

Development of advanced methods for leveraging AI/ML to optimize compressor and engine performance in real-time, aiming to reduce equipment maintenance costs by 20% by integrating AI/ML approaches, such as digital twins, into legacy infrastructure.

Development, enhancement, and field validation of advanced materials (e.g., coatings, composites, specialized alloys) resistant to corrosion and friction to improve the deliverability of natural gas and NGLs, with a target of increasing pipeline deliverability by 2% to 3%.

Applications must estimate the impact of the proposed facility-level equipment designs and retrofits on equipment relative to an industry baseline. For engines and compressors metrics include specific power, leakage rate, and thermal, mechanical, and isentropic efficiency. For equipment such as storage tanks, dehydrators, valves, or piping, performance metrics can include improved leakage rates or some other relevant transport efficiency metric related to reduced corrosion rates or less pressure drop from frictional losses. Concepts should target a 50% reduction in product losses caused by leaks or operational venting. Individual equipment improvement targets include 10% increase in compressor performance, 25% increase in engine thermal efficiency, and 20% lower equipment maintenance costs.

Applications should describe the anticipated level of improvement in hydrocarbon delivery using the data from the facility-level equipment design or transport infrastructure technology evaluated during the field test.

The estimated infrastructure-wide efficiency improvements for the proposed project shall properly include a measure of the energy content of the hydrocarbon entering the infrastructure impacted by the technology relative to the energy delivered to a relevant midstream or downstream handoff. An overall increase in hydrocarbon infrastructure efficiency of 2% is desired.

Topic Area 2 research and technologies will conclude with field tests to validate performance, confirm practicality, and gather data to verify financial benefits to accelerate

Version 4.0 Page 22 of 52 adoption by operators and service companies. As such, applications must include a letter of intent from an industry partner providing access to a relevant field site for prototype testing. [Letter(s) of commitment will be required prior to actual award if selected for award negotiation.] Project teams under Topic Area 2 must include a business that intends to pursue the commercialization of the proposed technology if the results of the field tests and economic assessments are viable.

Technologies proposed for research under this topic area should exhibit a beginning

TRL8 of 5 (component and/or breadboard validation in relevant environment) at the time of application submission and the proposed research plan should support delivering an ending TRL of 7 (system, subsystem, and/or component deployment and testing in an operational environment) by the end of the project.

All projects selected under Topic Area 2 will be required to complete a TMP that describes the current TRL of the proposed technology/technologies, relates the proposed work to maturation of the technology, describes the expected TRL at the end of the project, and describes any known post-project R&D necessary to further mature the technology.

Projects selected under Topic Area 2 will also be required to complete a TEA by the end of the project that demonstrates the economic feasibility of the technology/technologies and identifies economic and design hurdles that can be addressed with future research development.

To augment the TMP and TEA, projects selected under Topic Area 2 will be required to implement the DOE developed ARL framework9 focused on technology commercialization, including the utilization of the Adoption…