The US Department of Energy’s (DOE’s) Office of Fossil Energy (FE) has announced approximately $110 million in federal funding for cost-shared research and development (R&D) projects under three funding opportunity announcements (FOAs). Approximately $75M is for awards selected under two FOAs announced earlier this fiscal year; $35M is for a new FOA.
DOE’s program has deployed various large-scale CCUS pilot and demonstration projects; DOE said that it is imperative to build upon these learnings to test, mature, and prove CCUS technologies at the commercial scale. A recent study by Science of the Total Environment found that DOE is the most productive organization in the world in the carbon capture and storage field.
Under the first FOA award, Front-End Engineering Design (FEED) Studies for Carbon Capture Systems on Coal and Natural Gas Power Plants, DOE has selected nine projects to receive $55.4 million in federal funding for cost-shared R&D. The selected projects will support FEED studies for commercial-scale carbon capture systems
Under the second FOA award, Regional Initiative to Accelerate CCUS Deployment, DOE selected four projects to receive up to $20 million in federal funding for cost-shared R&D. The projects also advance existing research and development by addressing key technical challenges; facilitating data collection, sharing, and analysis; evaluating regional infrastructure; and promoting regional technology transfer. Additionally, this new regional initiative includes newly proposed regions or advanced efforts undertaken by the previous Regional Carbon Sequestration Partnerships (RCSP) Initiative.
Under the new FOA, Carbon Storage Assurance Facility Enterprise (CarbonSAFE): Site Characterization and CO2 Capture Assessment, DOE is announcing up to $35 million in federal funding for cost-shared R&D projects that will accelerate wide-scale deployment of CCUS through assessing and verifying safe and cost-effective anthropogenic CO2 commercial-scale storage sites, and carbon capture and/or purification technologies.
These types of projects have the potential to take advantage of the 45Q tax credit, which provides a tax credit for each ton of CO2 sequestered or utilized. The credit was recently increased to $35/metric ton for enhanced oil recovery and $50/metric ton for geologic storage.
Projects selected under this new FOA shall perform the following key activities:
omplete a detailed site characterization of a commercial-scale CO2 storage site (50 million metric tons of captured CO2 within a 30 year period);
Apply and obtain an underground injection control class VI permit to construct an injection well;
Complete a CO2 capture assessment; and
Perform all work required to obtain a National Environmental Policy Act determination for the site.
DOE’s National Energy Technology Laboratory will manage the selected projects.