TEOSYNTE CP FOA Mod 01.pdf

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AR-311-03.24

FINANCIAL ASSISTANCE

FUNDING OPPORTUNITY ANNOUNCEMENT

ADVANCED RESEARCH PROJECTS AGENCY – ENERGY (ARPA-E)

U.S. DEPARTMENT OF ENERGY

TECHNOLOGIES TO EMEND AND OBVIATE SYNTHETIC

NITROGEN’S TOLL ON EMISSIONS (TEOSYNTE)

Announcement Type: Initial Announcement Modification 01 Funding Opportunity No. DE-FOA-0003405

CFDA Number 81.135

Funding Opportunity Announcement (FOA) Issue Date: July 11, 2024

First Deadline for Questions to ARPA-E-CO@hq.doe.gov: 5 PM ET, August 2, 2024

Submission Deadline for Concept Papers: 9:30 AM ET, August 13, 2024

Second Deadline for Questions to ARPA-E-CO@hq.doe.gov: 5 PM ET, TBD

Submission Deadline for Full Applications: 9:30 AM ET, TBD

Submission Deadline for Replies to Reviewer Comments: 5 PM ET, TBD

Expected Date for Selection Notifications: January 2025

Total Amount to Be Awarded Approximately $36 million, subject to the availability of appropriated funds to be shared between FOAs DE-FOA-0003405 and

DE-FOA-0003408.

Anticipated Awards ARPA-E may issue one, multiple, or no awards under this FOA. The Federal share of awards may vary between $1 million and $10 million.

• For eligibility criteria, see Section III.A of the FOA.

• For cost share requirements under this FOA, see Section III.B of the FOA.

• To apply to this FOA, Applicants must register with and submit application materials through ARPA-E eXCHANGE (https://arpa-e-foa.energy.gov/Registration.aspx). For detailed guidance on using ARPA- E eXCHANGE, see Section IV.H.1 of the FOA.

• Applicants are responsible for meeting each submission deadline. Applicants are strongly encouraged to submit their applications at least 48 hours in advance of the submission deadline.

• For detailed guidance on compliance and responsiveness criteria, see Sections III.C.1 through III.C.4 of the FOA.

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Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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MODIFICATIONS

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

Mod. No. Date Description of Modifications

01 7/15/2024 • Updated the maximum period of performance for funding agreements from 36 months to 48 months in section II.A of the

FOA.

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Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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TABLE OF CONTENTS

REQUIRED DOCUMENTS CHECKLIST ................................................................................................................... - 1 -

I. FUNDING OPPORTUNITY DESCRIPTION ..................................................................................................... - 2 -

A. AGENCY OVERVIEW ...................................................................................................................................... - 2 - B. PROGRAM OVERVIEW AND BACKGROUND ........................................................................................................ - 3 - C. PROGRAM VISION AND OBJECTIVES ................................................................................................................. - 9 - D. TECHNICAL CATEGORIES OF INTEREST ............................................................................................................. - 11 - E. TECHNICAL PERFORMANCE TARGETS .............................................................................................................. - 12 -

II. AWARD INFORMATION ........................................................................................................................... - 15 -

A. AWARD OVERVIEW ..................................................................................................................................... - 15 - B. RENEWAL AWARDS ..................................................................................................................................... - 16 - C. ARPA-E FUNDING AGREEMENTS .................................................................................................................. - 16 -

1. COOPERATIVE AGREEMENTS........................................................................................................................ - 16 -

2. FUNDING AGREEMENTS WITH FFRDCS/DOE LABS, GOGOS, AND FEDERAL INSTRUMENTALITIES .......................... - 16 -

3. OTHER TRANSACTIONS AUTHORITY .............................................................................................................. - 17 -

D. STATEMENT OF SUBSTANTIAL INVOLVEMENT ................................................................................................... - 18 -

III. ELIGIBILITY INFORMATION .................................................................................................................. - 19 -

A. ELIGIBLE APPLICANTS .................................................................................................................................. - 19 -

1. INDIVIDUALS ............................................................................................................................................. - 19 -

2. DOMESTIC ENTITIES ................................................................................................................................... - 19 -

3. FOREIGN ENTITIES ..................................................................................................................................... - 19 -

4. CONSORTIUM ENTITIES ............................................................................................................................... - 20 -

B. COST SHARING ........................................................................................................................................... - 20 -

1. BASE COST SHARE REQUIREMENT ................................................................................................................ - 20 -

2. INCREASED COST SHARE REQUIREMENT ........................................................................................................ - 21 -

3. REDUCED COST SHARE REQUIREMENT .......................................................................................................... - 21 -

4. LEGAL RESPONSIBILITY ............................................................................................................................... - 22 -

5. COST SHARE ALLOCATION ........................................................................................................................... - 22 -

6. COST SHARE TYPES AND ALLOWABILITY ........................................................................................................ - 22 -

7. COST SHARE CONTRIBUTIONS BY FFRDCS AND GOGOS .................................................................................. - 23 -

8. COST SHARE VERIFICATION ......................................................................................................................... - 24 -

C. OTHER ...................................................................................................................................................... - 24 -

1. COMPLIANT CRITERIA ................................................................................................................................. - 24 -

2. RESPONSIVENESS CRITERIA.......................................................................................................................... - 25 -

3. SUBMISSIONS SPECIFICALLY NOT OF INTEREST ................................................................................................. - 26 -

4. LIMITATION ON NUMBER OF SUBMISSIONS .................................................................................................... - 26 -

IV. APPLICATION AND SUBMISSION INFORMATION ................................................................................. - 27 -

A. APPLICATION PROCESS OVERVIEW ................................................................................................................ - 27 -

1. REGISTRATION IN ARPA-E eXCHANGE....................................................................................................... - 27 -

2. CONCEPT PAPERS ...................................................................................................................................... - 27 -

3. FULL APPLICATIONS ................................................................................................................................... - 27 -

4. REPLY TO REVIEWER COMMENTS ................................................................................................................. - 28 -http://arpa-e.energy.gov/faq

Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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5. PRE-SELECTION CLARIFICATIONS AND “DOWN-SELECT” PROCESS ...................................................................... - 28 -

6. SELECTION FOR AWARD NEGOTIATIONS ........................................................................................................ - 28 -

B. APPLICATION FORMS .................................................................................................................................. - 29 - C. CONTENT AND FORM OF CONCEPT PAPERS ..................................................................................................... - 29 -

1. CONCEPT PAPER ........................................................................................................................................ - 30 - A. CONCEPT SUMMARY .................................................................................................................................. - 30 - B. INNOVATION AND IMPACT .......................................................................................................................... - 30 - C. PROPOSED WORK ..................................................................................................................................... - 30 - D. TEAM ORGANIZATION AND CAPABILITIES ...................................................................................................... - 31 -

D. CONTENT AND FORM OF FULL APPLICATIONS .................................................................................................. - 31 - E. CONTENT AND FORM OF REPLIES TO REVIEWER COMMENTS .............................................................................. - 31 - F. INTERGOVERNMENTAL REVIEW ..................................................................................................................... - 31 - G. FUNDING RESTRICTIONS .............................................................................................................................. - 31 -

1. ALLOWABLE COSTS .................................................................................................................................... - 31 -

2. PRE-AWARD COSTS ................................................................................................................................... - 31 -

3. PATENT COSTS .......................................................................................................................................... - 32 -

4. CONSTRUCTION ......................................................................................................................................... - 32 -

5. FOREIGN TRAVEL ....................................................................................................................................... - 32 -

6. PERFORMANCE OF WORK IN THE UNITED STATES............................................................................................ - 32 -

7. PURCHASE OF NEW EQUIPMENT .................................................................................................................. - 33 -

8. TECHNOLOGY TRANSFER AND OUTREACH ...................................................................................................... - 33 -

9. LOBBYING ................................................................................................................................................ - 34 -

10. CONFERENCE SPENDING ............................................................................................................................. - 34 -

11. INDEPENDENT RESEARCH AND DEVELOPMENT COSTS....................................................................................... - 34 -

12. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT ................. - 35 -

13. BUY AMERICA REQUIREMENT FOR PUBLIC INFRASTRUCTURE PROJECTS .............................................................. - 35 -

14. REQUIREMENT FOR FINANCIAL PERSONNEL .................................................................................................... - 36 -

H. OTHER SUBMISSION REQUIREMENTS ............................................................................................................. - 36 -

1. USE OF ARPA-E eXCHANGE .................................................................................................................... - 36 -

V. APPLICATION REVIEW INFORMATION ..................................................................................................... - 38 -

A. CRITERIA ................................................................................................................................................... - 38 -

1. CRITERIA FOR CONCEPT PAPERS ................................................................................................................... - 38 -

2. CRITERIA FOR FULL APPLICATIONS ................................................................................................................ - 39 -

3. CRITERIA FOR REPLIES TO REVIEWER COMMENTS ............................................................................................ - 39 -

B. REVIEW AND SELECTION PROCESS ................................................................................................................. - 39 -

1. PROGRAM POLICY FACTORS ........................................................................................................................ - 39 -

2. ARPA-E REVIEWERS ................................................................................................................................. - 40 -

3. ARPA-E SUPPORT CONTRACTORS ............................................................................................................... - 40 -

C. ANTICIPATED ANNOUNCEMENT AND AWARD DATES ........................................................................................ - 41 -

VI. AWARD ADMINISTRATION INFORMATION ......................................................................................... - 42 -

A. AWARD NOTICES ........................................................................................................................................ - 42 -

1. REJECTED SUBMISSIONS ............................................................................................................................. - 42 -

2. CONCEPT PAPER NOTIFICATIONS .................................................................................................................. - 42 -

3. FULL APPLICATION NOTIFICATIONS ............................................................................................................... - 42 -http://arpa-e.energy.gov/faq

Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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B. ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS ................................................................................. - 42 -

1. UNIQUE ENTITY IDENTIFIER AND SAM, FSRS, AND FEDCONNECT REGISTRATIONS ............................................... - 43 -

2. NATIONAL POLICY ASSURANCES ................................................................................................................... - 44 -

3. PROOF OF COST SHARE COMMITMENT AND ALLOWABILITY .............................................................................. - 44 -

4. COST SHARE PAYMENTS ............................................................................................................................. - 44 -

5. ENVIRONMENTAL IMPACT QUESTIONNAIRE ................................................................................................... - 45 -

6. TECHNOLOGY-TO-MARKET PLAN ................................................................................................................. - 45 -

7. INTELLECTUAL PROPERTY AND DATA MANAGEMENT PLANS ............................................................................. - 45 -

8. U.S. COMPETITIVENESS .............................................................................................................................. - 46 -

9. CORPORATE FELONY CONVICTIONS AND FEDERAL TAX LIABILITY ........................................................................ - 47 -

10. APPLICANT RISK ANALYSIS .......................................................................................................................... - 48 -

11. RECIPIENT INTEGRITY AND PERFORMANCE MATTERS ....................................................................................... - 48 -

12. NONDISCLOSURE AND CONFIDENTIALITY AGREEMENTS REPRESENTATIONS .......................................................... - 49 -

13. INTERIM CONFLICT OF INTEREST POLICY FOR FINANCIAL ASSISTANCE .................................................................. - 50 -

14. COMMERCIALIZATION PLAN AND SOFTWARE REPORTING ................................................................................. - 50 -

15. FRAUD, WASTE, AND ABUSE ....................................................................................................................... - 50 -

C. REPORTING................................................................................................................................................ - 51 -

VII. AGENCY CONTACTS ............................................................................................................................. - 52 -

A. COMMUNICATIONS WITH ARPA-E ................................................................................................................ - 52 - B. DEBRIEFINGS.............................................................................................................................................. - 53 -

VIII. OTHER INFORMATION ......................................................................................................................... - 54 -

A. TITLE TO SUBJECT INVENTIONS ...................................................................................................................... - 54 - B. GOVERNMENT RIGHTS IN SUBJECT INVENTIONS ............................................................................................... - 55 -

1. GOVERNMENT USE LICENSE ........................................................................................................................ - 55 -

2. MARCH-IN RIGHTS .................................................................................................................................... - 55 -

C. RIGHTS IN TECHNICAL DATA ......................................................................................................................... - 55 - D. PROTECTED PERSONALLY IDENTIFIABLE INFORMATION ...................................................................................... - 56 - E. FOAS AND FOA MODIFICATIONS ................................................................................................................. - 56 - F. OBLIGATION OF PUBLIC FUNDS ..................................................................................................................... - 57 - G. REQUIREMENT FOR FULL AND COMPLETE DISCLOSURE ...................................................................................... - 57 - H. RETENTION OF SUBMISSIONS ........................................................................................................................ - 57 - I. MARKING OF CONFIDENTIAL INFORMATION .................................................................................................... - 57 - J. EXPORT CONTROL INFORMATION .................................................................................................................. - 58 - K. COMPLIANCE AUDIT REQUIREMENT ............................................................................................................... - 58 -

IX. GLOSSARY ........................................................................................................................................... - 60 -http://arpa-e.energy.gov/faq

Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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- 1 -

REQUIRED DOCUMENTS CHECKLIST

For an overview of the application process, see Section IV.A of the FOA.

For guidance regarding requisite application forms, see Section IV.B of the FOA.

For guidance regarding the content and form of Concept Papers, Full Applications, and Replies to Reviewer Comments, see Sections IV.C, IV.D, and IV.E of the FOA.

SUBMISSION COMPONENTS

OPTIONAL/

MANDATORY

FOA

SECTION

DEADLINE

Concept Paper

• Each Applicant must submit a Concept Paper in Adobe PDF format by the stated deadline. The Concept Paper must not exceed 5 pages in length including graphics, figures, and/or tables, and must include the following:

o Concept Summary o Innovation and Impact o Proposed Work o Team Organization and Capabilities

Mandatory IV.C

9:30 AM ET,

August 13, Full Application

[TO BE INSERTED BY FOA MODIFICATION IN SEPTEMBER

2024]

Mandatory IV.D

9:30 AM ET,

TBD

Reply to Reviewer Comments

[TO BE INSERTED BY FOA MODIFICATION IN SEPTEMBER

2024] Optional IV.E 5 PM ET, TBD mailto:ARPA-E-OpenFOA@hq.doe.gov

Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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- 2 -

I. FUNDING OPPORTUNITY DESCRIPTION

A. AGENCY OVERVIEW

The Advanced Research Projects Agency – Energy (ARPA-E), an organization within the Department of Energy (DOE), is chartered by Congress in the America COMPETES Act of 2007 (P.L. 110-69), as amended by the America COMPETES Reauthorization Act of 2010 (P.L. 111- 358), as further amended by the Energy Act of 2020 (P.L. 116-260):

“(A) to enhance the economic and energy security of the United States through the development of energy technologies that—

(i) reduce imports of energy from foreign sources;

(ii) reduce energy-related emissions, including greenhouse gases;

(iii) improve the energy efficiency of all economic sectors;

(iv) provide transformative solutions to improve the management, clean-up, and disposal of radioactive waste and spent nuclear fuel; and

(v) improve the resilience, reliability, and security of infrastructure to produce, deliver, and store energy; and

(B) to ensure that the United States maintains a technological lead in developing and deploying advanced energy technologies.”

ARPA-E issues this Funding Opportunity Announcement (FOA) under its authorizing statute codified at 42 U.S.C. § 16538. The FOA and any cooperative agreements or grants made under this FOA are subject to 2 C.F.R. Part 200 as supplemented by 2 C.F.R. Part 910.

ARPA-E funds research on, and the development of, transformative science and technology solutions to address the energy and environmental missions of the Department. The agency focuses on technologies that can be meaningfully advanced with a modest investment over a defined period of time in order to catalyze the translation from scientific discovery to early-stage technology. For the latest news and information about ARPA-E, its programs and the research projects currently supported, see: http://arpa-e.energy.gov/.

ARPA-E funds transformational research. Existing energy technologies generally progress on established “learning curves” where refinements to a technology and the economies of scale that accrue as manufacturing and distribution develop drive improvements to the cost/performance metric in a gradual fashion. This continual improvement of a technology is important to its increased commercial deployment and is appropriately the focus of the private sector or the applied technology offices within DOE. In contrast, ARPA-E supports transformative research that has the potential to create fundamentally new learning curves.

ARPA-E technology projects typically start with cost/performance estimates well above the level of an incumbent technology. Given the high risk inherent in these projects, many will fail to progress, but some may succeed in generating a new learning curve with a projected cost/performance metric that is significantly better than that of the incumbent technology.

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- 3 -

ARPA-E funds technology with the potential to be disruptive in the marketplace. The mere creation of a new learning curve does not ensure market penetration. Rather, the ultimate value of a technology is determined by the marketplace, and impactful technologies ultimately become disruptive – that is, they are widely adopted and displace existing technologies from the marketplace or create entirely new markets. ARPA-E understands that definitive proof of market disruption takes time, particularly for energy technologies. Therefore, ARPA-E funds the development of technologies that, if technically successful, have clear disruptive potential, e.g., by demonstrating capability for manufacturing at competitive cost and deployment at scale.

ARPA-E funds applied research and development. The Office of Management and Budget defines “applied research” as an “original investigation undertaken in order to acquire new knowledge…directed primarily towards a specific practical aim or objective” and defines “experimental development” as “creative and systematic work, drawing on knowledge gained from research and practical experience, which is directed at producing new products or processes or improving existing products or processes.”1 Applicants interested in receiving financial assistance for basic research (defined by the Office of Management and Budget as “experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts”)2 should contact the DOE’s Office of Science (http://science.energy.gov/). Office of Science national scientific user facilities (http://science.energy.gov/user-facilities/) are open to all researchers, including ARPA-E Applicants and awardees. These facilities provide advanced tools of modern science including accelerators, colliders, supercomputers, light sources and neutron sources, as well as facilities for studying the nanoworld, the environment, and the atmosphere. Projects focused on early-stage R&D for the improvement of technology along defined roadmaps may be more appropriate for support through the DOE applied energy offices including: the Office of Energy Efficiency and Renewable Energy (http://www.eere.energy.gov/), the Office of Fossil Energy and Carbon Management (https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management), the Office of Nuclear Energy (http://www.energy.gov/ne/office-nuclear-energy), and the Office of Electricity (https://www.energy.gov/oe/office-electricity).

B. PROGRAM OVERVIEW AND BACKGROUND

The Technologies to Emend and Obviate SYnthetic Nitrogen’s Toll on Emissions (TEOSYNTE) program aims to lower nitrous oxide (N2O) emissions from the cultivation of corn and sorghum used for United States ethanol production by 50%. The program will emphasize plant and microbial bio-design strategies that lower the application of synthetic nitrogen (N) fertilizer on corn and sorghum fields while maintaining crop yields and reducing 50% of N2O emissions.

Lowering the requirements of synthetic N fertilizer will also lower costs to farmers, as the cost of fertilizer is a significant portion of the operating expenses of a farm. This program will enable

1 OMB Circular A-11 (https://www.whitehouse.gov/wp-content/uploads/2018/06/a11_web_toc.pdf), Section 84,

pg. 3.

2 OMB Circular A-11 (https://www.whitehouse.gov/wp-content/uploads/2018/06/a11_web_toc.pdf), Section 84,

pg. 3.

http://arpa-e.energy.gov/faq mailto:ARPA-E-OpenFOA@hq.doe.gov mailto:ExchangeHelp@hq.doe.gov http://science.energy.gov/ http://science.energy.gov/user-facilities/ http://www.eere.energy.gov/ https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management https://www.energy.gov/fecm/office-fossil-energy-and-carbon-management http://www.energy.gov/ne/office-nuclear-energy https://www.energy.gov/oe/office-electricity

Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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- 4 -technologies to reduce N fertilizer consumption and N2O emissions. These technologies will transform agriculture and lower the N2O contribution to the carbon intensity (CI) of ethanol produced today for light duty vehicles and in the future for sustainable aviation fuel.

Technologies developed under the TEOSYNTE program must achieve specific targets as outlined in Section I.E. in order to meet the program’s objectives to reduce greenhouse gas (GHG) emissions and N fertilizer usage over multiple seasons while maintaining crop yields.

1. AGRICULTURE AND GREENHOUSE GAS EMISSIONS

Agriculture accounts for 11.2% of total U.S. GHG emissions annually (Figure 1).3 Of these emissions, N2O and methane (CH4) are the two main contributors, equivalent to 5.6% and 4.2% of total GHG emissions, respectively.4,5 N2O has a greenhouse warming potential 273 times that of carbon dioxide (CO2) and persists in the atmosphere for close to 120 years.6 Approximately 80% of agricultural emissions of N2O arise from agricultural soil management (Figure 1), largely attributed to the application of synthetic nitrogen fertilizers, which are converted to N2O during the microbial soil processes of nitrification and denitrification.7 In the U.S., the majority of N2O emissions arise from the Corn Belt in the Midwest because of the application of N fertilizer.8

3 U.S. Environmental Protection Agency, “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022,” 2024, https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks.

4 Economic Research Service USDA, “Agriculture, Including Electricity Use, Accounted for an Estimated 11.2 Percent of U.S. Greenhouse Gas Emissions in 2020,” July 11, 2022, https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=104206.

5 U.S. Environmental Protection Agency. “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022.”

6 Piers Forster et al., “Changes in Atmospheric Constituents and in Radiative Forcing,” 2007, https://www.ipcc.ch/site/assets/uploads/2018/02/ar4-wg1-chapter2-1.pdf.

7 Rodney T Venterea et al., “Challenges and Opportunities for Mitigating Nitrous Oxide Emissions from Fertilized Cropping Systems,” Frontiers in Ecology and the Environment 10, no. 10 (December 2012): 562–70.

8 U.S. Alternative Fuels Data Center, “Ethanol Fuel Basics,” n.d., https://afdc.energy.gov/fuels/ethanol-fuel-basics;

Renewable Fuels Association, “Ethanol Industry Outlook,” 2023.

http://arpa-e.energy.gov/faq

Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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- 5 -

Figure 1. Greenhouse gas emissions (in million metric tons of carbon dioxide equivalent (MMT CO2-eq)) by agricultural sector and source.9,10,11

2. NITROGEN FERTILIZER AND BIOETHANOL

Corn and grain sorghum are the two primary feedstocks for ethanol production in the U.S., supporting 95% and 5% of total ethanol production, respectively.12,13 The passing of the Energy Policy Act in 2005 and the Energy Independence and Security Act of 2007 established the Renewable Fuel Standard, which mandated that most gasoline be blended with 10-15% ethanol. These changes led to significant expansion of ethanol production, reaching up to 15 billion gallons in 2022.14,15 Consequently, ethanol now comprises 75% of total biofuels produced in the U.S., corresponding to 1.1 quads of energy.16 On the other hand, the cultivation

9 U.S. Environmental Protection Agency, “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022”.

10 U.S. Environmental Protection Agency, “Sources of Greenhouse Gas Emissions,” April 11, 2024, https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions.

11 Economic Research Service USDA, “Agriculture, Including Electricity Use, Accounted for an Estimated 11.2 Percent of U.S. Greenhouse Gas Emissions in 2020,” July 11, 2022, https://www.ers.usda.gov/data-products/chart-gallery/gallery/chart-detail/?chartId=104206.

12 U.S. Alternative Fuels Data Center, “Ethanol Fuel Basics,” https://afdc.energy.gov/fuels/ethanol-fuel-basics.

13 Renewable Fuels Association, “Ethanol Industry Outlook,” https://d35t1syewk4d42.cloudfront.net/file/2432/2023%20RFA%20Outlook%20FINAL.pdf.

14 U.S. Environmental Protection Agency, “Overview for Renewable Fuel Standard,” January 23, 2024, https://www.epa.gov/renewable-fuel-standard-program/overview-renewable-fuel-standard.

15 Renewable Fuels Association, “Ethanol Industry Outlook.”

16 U.S. Energy Information Administration, “Biofuels Explained - Ethanol,” January 26, 2024, https://www.eia.gov/energyexplained/biofuels/ethanol-supply.php.

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Questions about this FOA? Check the Frequently Asked Questions available at http://arpa-e.energy.gov/faq. For questions that have not already been answered, email ARPA-E-CO@hq.doe.gov (with FOA name and number in subject line); see FOA Sec. VII.A.

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- 6 -of these two crops consumes approximately 52% of total N fertilizer in the U.S.17,18,19 Fertilizer production for corn accounts for 27 MMT CO2-eq, and fertilizer-driven agricultural soil transformation accounts for 42 MMT to 123 MMT CO2-eq from direct and indirect N2O emissions.20,21,22,23 Furthermore, internal calculations based on the U.S. Department of Agriculture’s (USDA) forecast of cost-of-production showed that the application of N fertilizer to corn and sorghum accounts for 25% of input cost to the grower, or $11.4 billion in 2022.24

Electrification of the transportation sector may reduce ethanol demand for light-duty vehicles.

Despite this, ethanol production may grow, as it is an important intermediate to produce sustainable aviation fuel (SAF). Ethanol-to-jet (ETJ) is the conversion of ethanol to SAF through dehydration to ethylene and catalytic oligomerization.25 ETJ is an important technology to achieve the goals of the SAF Grand Challenge, a presidential call to produce 3 billion gallons of SAF by 2030 and 35 billion gallons of SAF by 2050. The SAF Grand Challenge may enable the removal of the current cap on ethanol production, allowing U.S. farmers to double ethanol capacity.26 This increase in ethanol demand will result in doubling of N fertilizer application, which can double the current agricultural-based N2O emissions to between 84 MMT to 246 MMT CO2-eq, based on the estimate described above.

17 USDA National Agricultural Statistics Service, “2021 Agricultural Chemical Use Survey - Corn,” May 2021, https://www.nass.usda.gov/Surveys/Guide_to_NASS_Surveys/Chemical_Use/2021_Field_Crops/chemhighlights-corn.pdf.

18 USDA National Agricultural Statistics Service, “2019 Agricultural Chemical Use Survey - Sorghum,” May 2020, https://www.nass.usda.gov/Surveys/Guide_to_NASS_Surveys/Chemical_Use/2019_Field_Crops/chem-highlights-sorghum-2019.pdf.

19 USDA Economic Research Service, “Fertilizer Use and Price,” October 30, 2019, https://www.ers.usda.gov/data-products/fertilizer-use-and-price.aspx.

20 Calculations for CO2-eq for fertilizer production were performed using the GREET FD-CIC model (https://www.osti.gov/biblio/2205308). The value of 42 MMT for corn was also obtained from the GREET FD-CIC;

however, multiple studies suggest that the emissions factors for N2O in GREET FD-CIC underestimate N2O emissions. Therefore, a range of possible N2O emissions is given.

21 U.S. Environmental Protection Agency, “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022.”

22 Timothy B. Parkin and Thomas C. Kaspar, “Nitrous Oxide Emissions from Corn–Soybean Systems in the Midwest,” Journal of Environmental Quality 35, no. 4 (July 2006): 1496–1506.

23 Nathaniel C. Lawrence et al., “Nitrous Oxide Emissions from Agricultural Soils Challenge Climate Sustainability in the U.S. Corn Belt,” Proceedings of the National Academy of Sciences 118, no. 46 (November 16, 2021):

e2112108118, https://doi.org/10.1073/pnas.2112108118.

24 Economic Research Service USDA, “Commodity Costs and Returns,” October 2, 2023, https://www.ers.usda.gov/data-products/commodity-costs-and-returns/commodity-costs-and-returns/#Historical%20Costs%20and%20Returns:%20Corn.

25 Shaoqu Xie et al., “Bioethanol to Jet Fuel: Current Status, Challenges, and Perspectives,” Renewable and Sustainable Energy Reviews 192 (March 2024): 114240.

26 Decision Innovation Solutions, “Sustainable Aviation Fuel for the Future: What Does Iowa Have to Gain?,” January 2024, https://iowarfa.org/wp-content/uploads/2024/03/240112-Iowa-Sustainable-Aviation-Fuel-for-the- Future.pdf.

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- 7 -

3. NITROGEN FERTILIZER, N2O EMISSIONS, AND SOIL NITROGEN CYCLE

In the natural nitrogen cycle, the amount of fixed N that enters the soil is in balance with the transformation of N species that return N back to N2 via the nitrification and denitrification process carried out by the soil microbiome (Figure 2). To meet the high yield demand to support ethanol crop production, synthetic N fertilizer is overapplied to account for plant uptake and loss of N to the environment in the forms of ammonia (NH3), nitrate (NO3

–), nitric oxide (NO), or N2O.27

The production of N2O is often linearly correlated with the application of N fertilizer.28 The production of N2O in the soil N cycle occurs as a byproduct of nitrification of ammonium (NH4 to NO3

– and as an intermediate in denitrification of NO3

– to N2 (Figure 2igure 2).29 N2O production is highly variable throughout the crop growing season, often occurring after precipitation events that mobilize NH4

+ or NO3

– in the soil.30

Figure 2. The N cycle for agriculture, which includes natural and anthropogenic inputs of fixed-N. The production of N2O occurs during nitrification of NH4

+ and denitrification of NO3

27 N.K. Fageria and V.C. Baligar, “Enhancing Nitrogen Use Efficiency in Crop Plants,” in Advances in Agronomy, vol.

88 (Elsevier, 2005), 97–185, https://linkinghub.elsevier.com/retrieve/pii/S0065211305880046; Alison J. Eagle et al., “Fertilizer Management and Environmental Factors Drive N2O and NO3 Losses in Corn: A Meta‐Analysis,” Soil Science Society of America Journal 81, no. 5 (September 2017): 1191–1202.

28 Iurii Shcherbak, Neville Millar, and G. Philip Robertson, “Global Metaanalysis of the Nonlinear Response of Soil Nitrous Oxide (N 2 O) Emissions to Fertilizer Nitrogen,” Proceedings of the National Academy of Sciences 111, no.

25 (June 24, 2014): 9199–9204.

29 Marcelo Bueno Batista and Ray Dixon, “Manipulating Nitrogen Regulation in Diazotrophic Bacteria for Agronomic Benefit,” Biochemical Society Transactions 47, no. 2 (April 30, 2019): 603–14; Venterea et al., “Challenges and Opportunities for Mitigating Nitrous Oxide Emissions from Fertilized Cropping Systems”;

Muhammad Umair Hassan et al., “Management Strategies to Mitigate N2O Emissions in Agriculture,” Life 12, no. 3 (March 17, 2022): 439.

30 Eagle et al., “Fertilizer Management and Environmental Factors Drive N2O and NO3 Losses in Corn”; Márton Dencső et al., “Effects of Environmental Drivers and Agricultural Management on Soil CO2 and N2O Emissions,” Agronomy 11, no. 1 (December 29, 2020): 54.

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- 8 -

4. STATE OF THE ART FOR NITROGEN FERTILIZER AND N2O REDUCTION

Current approaches to managing N fertilizer and reducing N2O emissions in biofuel crop production involve three areas: biological nitrogen fixation, nitrogen use efficiency, and chemical nitrification inhibition. The current state of the art of these technological approaches are addressed below, including potential white spaces of interest that ARPA-E has identified.

However, the TEOSYNTE program is not limited to these approaches.

Biological Nitrogen Fixation (BNF) Over the past century, researchers elucidated and defined the physiological, genetic, and molecular mechanisms that enable BNF in free-living diazotrophic bacteria to translate to agricultural applications.31,32 Recent commercial efforts have focused on modifying free-living diazotrophs present in the corn rhizosphere and delivering these modified bacteria to corn to fix N2 for transfer to the plant. However, multiple independent agronomic studies show that efficacy of these modified diazotrophs in delivering fixed N is not consistent in field settings.33,34,35 Many hypotheses exist that can be evaluated for improving N2 fixation for delivery to biofuel crops, including: improving plant-microbe interactions between diazotrophs and the plant, reducing oxygen sensitivity of nitrogenase through breeding of crops that can provide an oxygen limited micro-environment, delivering increased root exudates to support the growth of the N2-fixing population, or metabolic balancing of N demand for cell growth and fixed N excretion.36,37,38

Nitrogen Use Efficiency (NUE) NUE in ethanol crop production has focused on improving yields at high applied N. A study of commercial corn cultivars developed over 50 years showed that yield and NUE have increased

31 Marcelo Bueno Batista and Ray Dixon, “Manipulating Nitrogen Regulation in Diazotrophic Bacteria for Agronomic Benefit”, Biochemical Society Transactions 47(2) (April 30, 2019):

https://doi.org/10.1042%2FBST20180342.

32 Kaiyan Guo et al., “Biological Nitrogen Fixation in Cereal Crops: Progress, Strategies, and Perspectives,” Plant Communications 4, no. 2 (March 2023): 100499, https://doi.org/10.1016/j.xplc.2022.100499.

33 Dave Franzen et al., “Performance of Selected Commercially Available Asymbiotic N-Fixing Products in the North Central Region” (NDSU Extension: NDSU, April 2023).

34 PROVEN 40 Field Trails 2022, 2022, https://www.youtube.com/watch?v=nyq6Ajm0EzM.

35 Finding Proof for Recommending Less N with Microbial Supplements: Research Challenges in Corn., 2022, https://www.youtube.com/watch?v=_ckI3SXlSOw.

36 Bethany L. Holland et al., “A Genome‐scale Metabolic Reconstruction of Soybean and Bradyrhizobium Diazoefficiens Reveals the Cost–Benefit of Nitrogen Fixation,” New Phytologist 240, no. 2 (October 2023): 744–56, https://doi.org/10.1111/nph.19203.

37 Allen Van Deynze et al., “Nitrogen Fixation in a Landrace of Maize Is Supported by a Mucilage-Associated Diazotrophic Microbiota,” ed. Eric Kemen, PLOS Biology 16, no. 8 (August 7, 2018): e2006352, https://doi.org/10.1371/journal.pbio.2006352.

38 Kristen Van Gelder et al., “Running the Numbers on Plant Synthetic Biology Solutions to Global Problems,” Plant Science 335 (October 2023): 111815, https://doi.org/10.1016/j.plantsci.2023.111815.

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- 9 -in tandem.39 Average fertilizer application has plateaued at roughly 150 pounds per acre (lb/ac);

however, yields have continued to increase, indicating a greater return of yield for a given unit of N.40 This paradigm of yield return operates under the expectation that N will remain at today’s elevated level. Recent work has shown that modulating plant physiology or architecture may allow for less N to be applied.41,42 New cultivars of corn and sorghum will need to be developed that allow for the current and future yield demand but with substantially lower applied N.

Chemical Nitrification Inhibition Currently, chemical inhibitors are commercially available that prevent nitrification of N fertilizer. These chemical inhibitors prevent NH4

+ loss, inhibiting the transformation of NH4 + to

NO3

–, thereby reducing N2O emissions by 25-35%.45 Despite their commercial availability and efficacy, chemical inhibitors are not popular due to increased costs associated with use.43,44

Having nitrification inhibitors directly produced by crops may bypass this barrier to adoption.

Several studies have shown that sorghum produces biological nitrification inhibitors (BNI), and that this trait can be readily bred.45 Breeding or engineering high levels of BNI into corn and sorghum may allow for greater adoption of nitrification inhibition at a meaningful scale.

C. PROGRAM VISION AND OBJECTIVES

Reducing N2O emissions by replacing synthetic N fertilizer with biological approaches will improve the sustainability of ethanol production from corn and sorghum, reducing GHG emissions in agriculture and lowering the CI of both ethanol fuel and ethanol-derived SAF.

Therefore, this program will foster biotechnological advances that will achieve the linked goals of reducing both N2O emissions and the application of synthetic N fertilizer. The technologies

39 Sarah M. Mueller, Carlos D. Messina, and Tony J. Vyn, “Simultaneous Gains in Grain Yield and Nitrogen Efficiency over 70 Years of Maize Genetic Improvement,” Scientific Reports 9, no. 1 (June 24, 2019): 9095, https://doi.org/10.1038/s41598-019-45485-5.

40 Sarah M. Mueller, Carlos D. Messina, and Tony J. Vyn, “Simultaneous Gains in Grain Yield and Nitrogen Efficiency over 70 Years of Maize Genetic Improvement,” Scientific Reports 9, no. 1 (June 24, 2019): 9095, https://doi.org/10.1038/s41598-019-45485-5.

41 Chia-Yi Cheng et al., “Evolutionarily Informed Machine Learning Enhances the Power of Predictive Gene-to- Phenotype Relationships,” Nature Communications 12, no. 1 (September 24, 2021): 5627, https://doi.org/10.1038/s41467-021-25893-w.

42 Hannah M. Schneider et al., “Root Angle in Maize Influences Nitrogen Capture and Is Regulated by Calcineurin B‐ like Protein (CBL)‐interacting Serine/Threonine‐protein Kinase 15 (ZmCIPK15),” Plant, Cell & Environment 45, no. 3 (March 2022): 837–53, https://doi.org/10.1111/pce.14135.

43 Azeem Tariq et al.,…