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9 Mar 2023

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US Department of Energy Offers $2.5 Billion for Carbon Capture Projects

Posted with permission from ESG Impact Zone.

The Department of Energy will provide $2.52 billion in funding for two carbon capture programs, with additional funding possible later, the agency said Thursday.

Through its Carbon Capture Demonstration Projects Program, DOE is offering $1.7 billion for about six commercial-scale carbon capture projects integrated with carbon transportation and geologic storage infrastructure.

The program focuses on projects that can be replicated at power plants and major industrial sources of carbon emissions, such as cement, pulp and paper, iron and steel plants, the department said.

DOE will offer up to 50% of a project’s cost. It is targeting projects at two coal-fired power plants, two gas-fired plants and two industrial facilities, with the precise locations to be determined.

DOE is also offering $820 million for up to 10 projects focused on “de-risking transformational” carbon capture technologies.

Funding for the Carbon Capture Large-Scale Pilots program will support testing of emerging technologies for the power and industrial sectors, according to DOE. 

DOE said it expects it will issue another carbon capture demonstration funding opportunity for projects that are still performing front-end engineering design studies.

“This announcement is significant not just for the size of the investment, but for the impact it will have on further advancing the development and deployment of carbon management technologies in both heavy industry and power sectors,” Jessie Stolark, Carbon Capture Coalition executive director, said in a statement.

Including the just-announced programs, the bipartisan Infrastructure Law has provided more than $10 billion to boost carbon capture technology, according to Stolark.

Meanwhile, the Carbon Removal Alliance was launched Thursday. The group aims to advance policies that support permanent carbon removal technologies.

The group’s 23 members include Climeworks, Running Tide and Stripe.

Photo of power plant from ESG Impact Zone.

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