Carbon Capture Demonstration Projects Program

Background  

Carbon capture and storage captures carbon dioxide before it enters the atmosphere. Typically, carbon capture equipment is placed at or near the source of emissions, like a power plant or industrial facility. This is known as “point-source” capture. After the carbon dioxide (CO2) is captured, it is compressed so that it can be transported more easily by pipelines, truck, rail, or ships. The last step is to safely and permanently store the CO2 in geologic formations deep underground. There are rigorous requirements that projects must meet before they can inject and store the CO2. 

DOE estimates that reaching our nation’s energy goals will require capturing and storing 400 million to 1.8 billion tons of CO2 annually by 2050. Commercial demonstration of advanced carbon capture technologies, integrated with reliable transportation and storage infrastructure, is necessary for the widespread deployment of carbon capture technologies. 

Program Overview 

The Carbon Capture Demonstrations Projects Program invests in integrated carbon capture, transport, and storage technologies and infrastructure that can be readily replicated and deployed at power plants and major industrial sources of carbon emissions, such as cement, pulp and paper, iron, and steel. This program aims to demonstrate substantial improvements in the efficiency, effectiveness, cost, and environmental performance for power and industrial sectors to create good-paying manufacturing jobs, reduce pollution for healthier communities, and reinforce America’s global competitiveness. 

Current Funding Opportunities 

With funding from both the Carbon Capture Large-Scale Pilot Projects Program and the Carbon Capture Demonstrations Projects Program, in December 2024, OCED issued a Notice of Funding Opportunity (NOFO)  to fund up to $1.3 billion for transformational large-scale carbon capture, utilization, and storage technologies. Concept papers are due by March 1, 2025, and full applications are due by July 1, 2025. Learn more here.  

Announcements