U.S. Department of Energy Announces Up To $100 Million for Pilot-Scale Testing of Advanced Carbon Dioxide Removal Technologies

• Includes Funding for Projects to Produce Carbon-Negative Hydrogen from Biomass

The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced up to $100 million to help develop a commercially viable carbon dioxide removal industry in the United States.

The funding will support pilot projects and testing facilities to demonstrate and scale carbon dioxide removal technologies that reduce carbon dioxide (CO₂) pollution by removing it directly from the atmosphere and then storing the CO₂ in geological, biobased, and ocean reservoirs or converting it into value-added products. This includes pilot projects that focus on producing carbon-negative hydrogen from biomass. Those interested in hydrogen pilot applications should consult AOI-1: Small Biomass Carbon Removal and Storage (BiCRS) Pilots in FOA DE-FOA-0003082.

This funding opportunity announcement aims to support Carbon Negative Shot™ objectives across carbon dioxide removal pathways through integrated pilot-scale testing of advanced technologies and detailed monitoring, reporting, and verification protocols. The Carbon Negative Shot sets a goal of reducing the cost of removing CO₂ from the atmosphere to less than $100 per net metric ton of CO₂-equivalent by 2032.

Projects selected under this FOA will focus on three areas of interest:

• Small Biomass Carbon Removal and Storage Pilots — will support integrated pilot-scale testing of biomass carbon removal—including carbon-negative hydrogen production—and storage or conversion with appropriate monitoring, reporting, and verification.
• Small Mineralization Pilots — will support integrated pilot-scale testing of enhanced mineralization technologies with appropriate monitoring, reporting, and verification.
• Multi-Pathways Carbon Dioxide Removal Testbed Facilities — will support testbed facilities suitable for evaluating, developing, and integrating multiple carbon dioxide removal pathways across different ecosystems, climates, and communities.

Projects selected under this opportunity will be required to develop and implement strategies to ensure strong community and worker benefits, and report on such activities and outcomes.

Funding for hydrogen-related pilot projects supports the goals of the national clean hydrogen strategy and aligns with the priorities of the Hydrogen Interagency Task Force, which is coordinating a whole-of-government approach to advancing clean hydrogen. These government-wide efforts include tax incentives in the Inflation Reduction Act; deployment of the Regional Clean Hydrogen Hubs; and ongoing research, development, and demonstration activities to drive down the cost of clean hydrogen and achieve the Hydrogen Shot™ goal of $1 per kilogram within a decade.

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