The U.S. Department of Energy (DOE) has unveiled a $52.5 million initiative to accelerate the development and commercialization of direct air capture (DAC) technologies.
This funding, allocated under President Biden’s Investing in America plan, aims to reduce legacy carbon emissions by directly capturing CO2 from the atmosphere.
CDR is a crucial component of the Biden administration’s climate goals. The new Commercial Direct Air Capture Pilot Prize will support the construction and operation of pilot-scale CDR facilities capable of capturing at least 500 tons of CO2 annually.
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This initiative is designed to foster industry growth, create jobs, attract private investment, and deliver climate benefits to communities.
Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management (FECM) stated: “Achieving our ambitious climate goals requires the rapid scale-up of carbon dioxide removal technologies.”
“Today DOE is launching the Commercial Direct Air Capture Pilot Prize—the latest in a suite of programs that provide groundbreaking support to help de-risk and demonstrate commercial viability of direct air capture technology with the ultimate goal of industry deployment,” Crabtree said.
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The prize competition will award up to $12 million to winning teams that successfully complete four development phases and operate a pilot facility for at least 2,000 hours.
Participants must also demonstrate their potential to contribute to the larger Regional Direct Air Capture Hubs program, which aims to establish four commercial-scale CDR hubs capable of capturing at least 1 million tons of CO2 per year.
Private companies, government entities, and academic institutions can apply for the Commercial Direct Air Capture Pilot Prize, with the first phase open for applications until February 7, 2025.
DOE’s Direct Air Capture Prize Programs
The U.S. Department of Energy (DOE) is spearheading multiple initiatives to accelerate the development and deployment of DAC technologies
A core component of this strategy is the American-Made Direct Air Capture Prizes, which offer substantial financial incentives and technical support to innovators.
These competitions are designed to foster a comprehensive approach to carbon dioxide removal, from early-stage research to commercial-scale operations.
The Commercial Direct Air Capture Prize, a cornerstone of this effort, provides up to $100 million in funding across two tracks: the Commercial Direct Air Capture Pilot Prize and the Carbon Dioxide Removal Purchase Pilot Prize. The latter has already selected 24 semifinalists to receive a combined $1.2 million.
