Improving Efficiency, Reliability, and Flexibility of Coal-Based Power Plants

The U.S. Department of Energy (DOE), through the Office of Fossil Energy and Carbon Management (FECM), is offering funding under Notice of Funding Opportunity (NOFO) DE-FOA-0003606 to improve the efficiency, reliability, and flexibility of coal-based power plants. This initiative seeks to address urgent challenges in U.S. energy infrastructure, especially the increasing strain on grid reliability due to the rapid retirement of firm thermal generation assets and the growing demand from energy-intensive sectors. The program is aligned with Executive Order 14156 and aims to refurbish existing coal plants for rapid deployment and enhanced performance while reducing emissions. The funding opportunity comprises three strategic topic areas: (1) Development and Implementation of Advanced Wastewater Systems, (2) Engineering and Implementation of Dual Firing Retrofits, and (3) Development and Testing of Natural Gas Cofiring Systems. These areas focus on integrating advanced technologies into existing coal facilities to improve environmental outcomes, operational flexibility, and economic performance. Projects are expected to demonstrate validated systems at scale, achieving high technology readiness levels (TRL 7 or greater). Eligible applicants include domestic entities such as institutions of higher education, for-profit and non-profit organizations, state and local governments, and federally recognized Indian Tribes. DOE and non-DOE Federally Funded Research and Development Centers (FFRDCs) may participate as subrecipients under specific conditions, but not as prime recipients. Foreign entities may only participate with approved waivers, and all work must be performed in the United States unless otherwise waived. Cost sharing is required: 20% for Phases I and II, and 50% for Phase III. Applications must be submitted through NETL eXCHANGE by January 7, 2026, no later than 5:00 p.m. ET. The funding opportunity is structured into three phases: Phase I (12 months) supports project definition and preliminary design; Phase II (12 months) enables final engineering and NEPA clearance; and Phase III (up to 36 months) facilitates implementation and operational validation. A downselect will occur between Phases I and II, and a go/no-go review will occur before Phase III. Key application components include technical volumes, budget justifications, cost share letters, environmental information volumes, and project management plans. Applications will be evaluated based on technical merit, cost realism, relevance to DOE goals, and team capabilities. The anticipated total federal funding is $100 million, with up to $50 million for wastewater systems, and $25 million each for the dual-firing and co-firing systems. Selection notifications are expected in May 2026, with awards anticipated by July 2026. Projects may last up to five years across all phases. For assistance, applicants may contact DE-FOA-0003606@netl.doe.gov. A Teaming Partner List is also available on NETL eXCHANGE to support collaboration formation. This NOFO is expected to recur annually, with the next anticipated cycle beginning in Fall 2026.

Demonstrate TRL 7+ readiness; clearly detail Phase I deliverables; secure team and site commitments early.