Carbon Capture Projects, Regional CO2 Pipeline Design to Obtain $2.6 Billion DOE Funding Proposal

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Diving Brief:

  • The Department of Energy plans to offer $2.54 billion to help fund six carbon capture and storage, or CCS, demonstration projects at coal and gas-fired power plants as well as industrial facilities , according a notice of intent released Wednesday.
  • The DOE will also provide $100 million for the design of regional carbon dioxide pipeline systems, the department said in a separate notice.
  • “To meet President Biden’s climate goals, we must rapidly decarbonize our electricity generation and heavy industries — such as steel production — that are critical to the clean energy transition,” the DOE Secretary said. , Jennifer Granholm, in a press release.

Overview of the dive:

So far, CCS has not taken off in the electricity sector. NRG Energy, for example, mothballed its Petra Nova carbon capture project at a Texas power plant in 2020 after experiencing operational problems and financial losses. It was the only carbon capture facility at a US power plant.

The DOE aims to spur the development of carbon capture and storage using funding authorized by the bipartisan Infrastructure Act. The ministry intends to begin accepting applications for funding in August or September.

The department said it expects to accept 12 applications for the initial design of CCS projects, which would receive a total of $160 million in DOE funding.

It then plans to offer $2.1 billion for the detailed design and construction of six CCS projects, two at coal-fired plants, two at gas-fired plants and two at industrial facilities. Funding requires applicants to pay at least half of their project costs.

Proposed projects must capture at least 95% of facility carbon emissions.

The DOE sees broad potential benefits of CCS technology.

“The deployment of CCS can and should reduce emissions of other types of pollution in addition to CO2 pollution, protect communities from increased cumulative pollution, and maintain and create good, well-paying jobs across the country. “, said the department.

The DOE said it will require applicants for funding to show how their proposals will benefit communities and meet requirements for diversity, equity, inclusion, accessibility and environmental justice.

“These requirements will improve ways to facilitate public engagement, create opportunities for communities to help shape projects and obtain data to support legislative and governmental decision-making,” the department said. “The intent is to develop community-informed CCS demonstrations that serve the cost-effective, efficient, equitable, and environmentally responsible expansion of CCS operations.”

The DOE expects to begin accepting applications for funding for the design of regional carbon pipeline projects in the first quarter of next year.

According to the DOE, the funding is intended to support open-access pipeline or common carrier projects that connect several potential regional CO2 hubs for sources and storage options. It can also be used for pipeline projects that connect local carbon sources with storage and conversion options to form an integrated regional CO2 storage hub, the department said.

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