DOE Announces $1.4 Billion Investment to Reduce Carbon Emissions
On June 8, 2009, the Department of Energy ("DOE") issued a Funding Opportunity Announcement ("FOA") to deploy over $1.4 billion from the American Recovery and Reinvestment Act to be used to lower our nation's carbon emissions. Applications under this FOA are due August 7, 2009 at 8:00 p.m. Eastern Time. Most types of entities are eligible to apply.
June 17, 2009
The FOA will support projects in two areas: (1) the capture and sequestration of carbon dioxide emissions from industrial sources and (2) demonstration of innovative concepts for beneficial CO2 use.
Technology Area #1: Carbon Capture and Sequestration
The FOA provides over $1.3 billion to fund large-scale carbon capture and sequestration projects. Eligible industrial sources include, but are not limited to, cement plants, chemical plants, refineries, steel and aluminum plants, manufacturing facilities, and power plants using opportunity fuels. Plants with electric power output greater than 50 percent of total energy output that operate on more than 55 percent coal as a feedstock are ineligible. Eligible sequestration opportunities include deep saline formations and deep geologic systems. The technologies must make progress toward capture and sequestration of 75 percent of CO2 from a treated stream composed of at least 10 percent CO2 by volume that would otherwise be emitted into the atmosphere. DOE's target is for one million tons per year of CO2 emissions from each plant to be captured and sequestered.
DOE anticipates issuing 10 to 12 awards to recipients that are able to operate at commercial scale in an industrial setting. The awards are expected to range from $40 million to $400 million. DOE's target cost share is 50 percent but may be as large as 80 percent.
Technology Area #2: Innovative Concepts for Beneficial CO2 Use
This FOA provides $100 million to fund projects that demonstrate innovative concepts for beneficial CO2 use, including:
- CO2 mineralization to carbonates directly through conversion of CO2 in flue gas
- Use of CO2 from power plants or industrial applications to grow algae/biomass
- Conversion of CO2 to fuels and chemicals
DOE anticipates making six to eight awards under this FOA. The awards are expected to range from $500,000 to $3 million. DOE's cost share will not exceed 80 percent. Federal funds under this FOA will be available for reimbursement of costs until September 30, 2015.
All types of entities are eligible to apply, except federal agencies, Federally Funded Research and Development Center contractors, and nonprofit organizations that engaged in lobbying activities after December 31, 1995.
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