The U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) announced plans to allocate up to $1.8 billion to support the design, construction, and operation of commercial-scale direct air capture (DAC) facilities in multiple hubs across the U.S.
A Notice of Intent (NoI) from the OCED describes how the funding will support mid- to large-scale DAC facilities and necessary infrastructure, offering flexible options for applicants to develop and expand Regional DAC Hubs.
While the primary focus is on large-scale facilities, there is also a clearly defined scope for funding of mid-scale projects, which play a critical role in allowing early-stage developers to validate their technologies before scaling up. This support is expected to enhance the success and impact of the anticipated four Regional DAC Hubs.
Funding areas for DAC Hubs
OCED anticipates offering funding in the following three topic areas:
Topic Area 1: Funding 1-3 infrastructure scaling platforms, or host sites, to provide DAC developers with a place to build and operate facilities with access to clean energy and shared CO2 post-capture processing. Maximum of $250 million for a single project.
Topic Area 2: Funding 4-8 mid-scale commercial DAC facilities with a capture capacity between 2,000 and 25,000 tons of CO2 per year. Maximum of $50 million for a single project.
Topic Area 3: Funding 2-6 large-scale commercial DAC facilities with a minimum capture capacity of 25,000 tons of CO2 per year. Maximum of $600 million for a single project.
Projects in all topic areas will require a 50% minimum non-federal cost share.
OCED plans to release the funding solicitation in winter 2024. To assist potential applicants, an informational webinar is scheduled for October 10, 2024, followed by an in-person Industry Day in November to encourage partnerships. More details are available on the OCED website.
Previously, in August 2023, DOE selected 21 projects under the Regional DAC Hubs program, including two hubs in Louisiana and Texas.
The remaining 19 projects, overseen by the Office of Fossil Energy and Carbon Management, received funding for early development phases, such as feasibility assessments and front-end engineering design (FEED) studies, in preparation for future DAC Hub demonstrations.
Commenting on LinkedIn after the announcement, Jack Andreasen, Policy Manager for Carbon Management at Breakthrough Energy, welcomed the focus on mid-size projects but also pointed out that there is a lack of demand support in the NoI, which according to him is a critical point at this phase of DAC’s development in the U.S.
source: Carbon Herald
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