The DOE Office of Fossil Energy and Carbon Management announced today that it will be making $35 million available for the development of tech that reduces CO2 emissions from industries like aviation and shipping, while also opening the door for carbon dioxide removal companies that are focused on removing existing emissions.
The funds will come through a prize system that draws on resources in the Investing in America program, which is focused on net zero technologies.
Running under the name “Carbon Dioxide Removal Purchase Pilot Prize” it will allow companies to sell carbon removal credits directly to the DOE. With this development, the government is looking to provide more demand for the services of the burgeoning industry at a critical point in its development.
“The CDR Purchase Pilot Prize represents the first time the United States federal government will purchase high-quality carbon removal credits from commercial-scale activities,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “It will define how to evaluate success for carbon dioxide removal technologies and how purchase contracts can advance innovation, all while addressing environmental, climate, and community priorities.”
FECM has defined four directions of CDR projects that will be eligible for the funds:
- Direct air capture with storage
- Biomass with carbon removal and storage
- Enhanced weathering and mineralization
- Planned or managed carbon sinks
Applications are now open with Phase 1 of the CDR Purchase Pilot Prize accepting applications through November 30, 2023. Additionally Phase 2 and Phase 3 prize rules are available for comment through October 31, 2023.
You can find more details in the DOE’s announcement here.