California is advancing its push into direct air capture, carbon removal, and clean energy innovation with a new funding opportunity designed to move emerging climate technology from pilot scale toward early commercialization while embedding stronger community participation requirements.
The California Energy Commission’s (CEC) solicitation makes up to $11 million available for two to four projects, with individual awards ranging from $2.5 million to $5.5 million. The program targets pre-commercial direct air capture demonstration projects that must operate above Technology Readiness Level 6, signaling that only relatively mature systems are eligible for support.
Applicants are required to structure projects with at least 20% match funding, reinforcing the expectation that private capital will share financial risk alongside public investment. In addition, at least 7 percent of CEC funds must be allocated specifically to community engagement, outreach, and education activities. Each proposal must also include a host community partner and a plan for sustained local involvement throughout project development and operation.
The program sets explicit performance benchmarks that selected projects must aim to achieve by completion. These include a capture cost ceiling of no more than $450 per metric ton of carbon dioxide, an energy consumption target of no more than 1,400 kilowatt-hours per metric ton of CO2, and a net removal capacity of at least 500 metric tons of CO2 per year. Together, these thresholds reflect an effort to translate early-stage engineering work into measurable climate and cost outcomes.
The CEC team will hold a pre-application workshop on May 21st and interested parties can register to learn more.
The foundations of direct air capture in California
California’s approach also emphasizes social licensing as a core requirement rather than an optional feature. By mandating community partnerships and dedicated engagement funding, the program signals that infrastructure for carbon removal must secure local support in addition to technical viability.
The state currently has only a small number of direct air capture projects, with roughly four to six at pilot, demonstration, or early operational stage. These include Heirloom’s facility in Tracy, the California DAC Hub consortium backed by the U.S. Department of Energy, Southern San Joaquin Valley hub concept studies led by Lawrence Berkeley National Lab, and multiple California Energy Commission-supported pilots and lab-scale systems.
Most activity remains in early development or pre-commercial testing rather than full deployment. While these efforts position California as a leading U.S. hub for direct air capture innovation, the technology is still emerging globally and remains concentrated in small-scale demonstrations and experimental facilities rather than large, commercial carbon removal operations.
The announcement also follows the Trump administration’s move to preserve federal funding for key U.S. direct air capture and hydrogen hub projects, including multibillion-dollar programs that had been at risk of cancellation in Texas and Louisiana.
Read more: Trump Administration Preserves Federal Funding For US DAC And Hydrogen Hubs
