Carbon Capture Demonstration Projects Program

The Point Source Carbon Capture Notice of Funding Opportunity, issued by the U.S. Department of Energy through the Office of Clean Energy Demonstrations, provides up to $1.3 billion in funding to advance carbon capture, utilization, and storage projects. The funding aims to accelerate the development and commercialization of carbon capture technologies at various stages of readiness, supporting efforts to decarbonize the power generation and industrial sectors. This NOFO supports fully integrated, commercial-scale demonstrations, large-scale pilot projects for transformational technologies, and networked carbon management systems. The funding is broken into three topic areas. The first focuses on integrated demonstrations for carbon capture at coal-fired power plants or industrial facilities that are not primarily for electric generation. Projects in this area must achieve a minimum carbon dioxide capture capacity of 300,000 metric tons annually and demonstrate technologies already validated at a high technology readiness level. The second area supports large-scale pilot projects for transformative carbon capture technologies that advance cost and efficiency. Projects under this area must test systems capturing significant volumes of CO₂ under real-world conditions and show potential for scalability to commercial deployment. The third area targets carbon capture networks integrating multiple emitters, transport systems, and storage providers to demonstrate coordinated regional carbon management infrastructure. Eligible applicants include domestic institutions of higher education, for-profit organizations, nonprofit organizations, state and local governments, Indian Tribes, and similar entities. Foreign entities are generally ineligible unless a waiver is approved. Cost-sharing is required, with a minimum of 50 percent for commercial-scale demonstrations and regional networks and 30 percent for large-scale pilot projects. Non-federal cost share contributions may include cash, in-kind contributions, and realized tax credits. Projects selected for funding will be managed in a phased approach, with continuation decisions based on achieving specific milestones. Applications are required to include technical details of the proposed carbon capture system, economic viability, community benefits plans, and strategies for workforce and labor engagement. Technical volumes must address environmental impacts, lifecycle analyses, emissions reductions, and system performance. Proposals must also include financial modeling, risk assessments, project management structures, and detailed work plans. Projects will be evaluated on technical merit, financial feasibility, management capability, community benefits, and their ability to advance carbon capture deployment. Concept papers are due March 1, 2025, and full applications are due July 1, 2025. Successful applicants will be notified by November 2025, with award negotiations expected to conclude by March 2026. The period of performance for awarded projects is expected to range between 8 to 10 years, depending on the proposed scope. Projects must demonstrate commercial viability, technical effectiveness, and community benefits to contribute meaningfully to national decarbonization goals.