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

The U.S. Department of Energy’s Office of Fossil Energy and Carbon Management (FECM) has issued a Notice of Funding Opportunity (NOFO) titled “Improving Efficiency, Reliability, and Flexibility of Coal-Based Power Plants.” This funding opportunity aims to support projects that design, implement, test, and validate retrofits and refurbishments of existing coal power plants across three strategic topic areas. The initiative is motivated by pressing reliability challenges in the nation’s electric grid, which are compounded by the retirement of firm thermal generation and the insufficient deployment of replacements capable of delivering essential grid services. The FECM aims to address these issues while strengthening U.S. industrial and energy security priorities. The NOFO was released on October 31, 2025, with full applications due by January 23, 2026, and anticipated selections in May 2026. Through this NOFO, FECM will fund cooperative agreements for three 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 projects will enhance the efficiency, environmental performance, and fuel flexibility of coal-fired plants while enabling them to serve as reliable baseload resources amid increasing demand from sectors like defense, semiconductor manufacturing, and AI-driven data centers. Importantly, each topic area also includes a requirement to develop a conceptual design for carbon capture, utilization, and storage (CCUS), with an emphasis on revenue-generating carbon utilization pathways such as enhanced oil or natural gas recovery (EOR/EGR). The NOFO outlines a three-phase project structure: Phase I focuses on project definition, preliminary engineering, and environmental planning; Phase II covers final engineering and design; and Phase III involves full-scale implementation and validation. Each topic area specifies award tiers, with Phase I awards capped at $400,000 in federal share and subsequent phases supporting awards up to $48 million depending on topic area. Minimum cost-share requirements are 20% for Phases I and II, and 50% for Phase III. Up to 15 total awards are expected across the three topic areas, with an estimated total program funding of $100 million. All projects must meet Technology Readiness Level (TRL) 7 at minimum and aim for TRL 8 or higher. Eligibility is broadly defined and inclusive, welcoming applications from domestic entities including institutions of higher education, for-profits, nonprofits, state and local governments, and Indian Tribes. Foreign entities may participate only with a formal waiver request and must meet strict criteria. Performance of work is required to take place within the U.S. unless a foreign work waiver is approved. FFRDCs (Federally Funded Research and Development Centers) may only participate as subrecipients, with their contributions limited to 15% of total project cost. The application process involves submitting a full application via the NETL eXCHANGE system, which includes technical volume, cost share documentation, resumes for key personnel, a project management plan, and environmental impact materials. Pre-FEED deliverables and NEPA documentation are critical milestones in Phase I. Applications not aligning with the topic area goals, failing to include a CCUS conceptual design, or proposing non-U.S. host sites will be deemed non-responsive. Evaluation criteria include technical merit, project viability, and cost-effectiveness, with DOE retaining substantial involvement in selected projects. Applicants must register in SAM.gov, Grants.gov, and the NETL eXCHANGE system prior to submission. Questions about the NOFO may be directed to [email protected], while technical portal support is available at [email protected]. The award period begins in July 2026, with Phase I performance scheduled through July 2027 and potential continuation through Phase III, lasting up to 60 months in total. This is a recurring opportunity, and DOE is expected to issue similar solicitations in future years to continue bolstering grid resilience through coal plant modernization.

Ensure CCUS conceptual design is included and site is U.S.-based; Phase I must complete EIV and pre-FEED; cost share planning is critical for Phase II–III.