On December 19, the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) launched the application process for its $1.8 billion funding earmarked for supporting projects that catalyze the commercial scale-up of direct air capture (DAC) technology.
This financial support will serve to back projects in different stages of development as part of a larger plan to create four regional DAC hubs across the United States.
The announcement issued by the DOE states that the funding amount of $1.8 billion might not be completely awarded during the first round of applications.
As funds remain available, the DOE plans to issue additional reopenings, keeping in line with the program’s strategy.
The program is open to applications from industry stakeholders that operate independently or in partnerships with National Laboratories, multi-institutional collaborations, institutions of higher education, non-profit and for-profit entities, tribes, local and state governmental entities, and both incorporated and unincorporated consortia.
Intended to advance DAC solutions, the funding will cover the related project infrastructure, evaluating the positive benefits each project brings to its local communities.
The DOE will award funding with up to 50% federal cost share to projects classified in three different topic areas (TAs).
Relevant: DOE Reveals Plans For $1.8 Billion Funding For DAC Hubs
TA-1 is Infrastructure Access Platforms (IAP), where up to 3 funding awards will be allocated, each with up to $250M of federal share.
TA-2 covers Mid-Scale Commercial (MSC) DAC Facilities, with a maximum of 8 awards, each up to $50M in federal share.
TA-3 refers to Large-Scale Commercial (LSC) DAC Facilities, where the DOE will provide up to 6 awards, each with up to $600M in federal share.
The call will be accepting complete applications by the end of July 2025, with plans to announce the approved award recipients in December 2025, followed by an award negotiations period in the spring of 2026.
Read more: U.S. Awards $1.2 Billion For Developing Direct Air Capture Hubs In Texas And Louisiana
