• U.S. DOE plans to allocate up to $1.8 billion to scale Direct Air Capture (DAC) facilities and infrastructure.
• Funding supports mid- to large-scale commercial DAC projects and the development of Regional DAC Hubs.
• DAC technologies aim to capture and remove legacy CO2, critical for achieving net-zero carbon emissions by 2050.

The Biden-Harris Administration, through the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED), has announced plans to provide up to $1.8 billion in funding to support the growth of Direct Air Capture (DAC) technologies. This initiative, part of the President’s Bipartisan Infrastructure Law, is designed to scale up commercial DAC facilities and build essential infrastructure for carbon capture.

Strategic Goals

The funding targets mid- to large-scale DAC projects aimed at capturing legacy carbon dioxide (CO2) directly from the air. DAC plays a vital role in addressing the climate crisis, with captured CO2 safely stored underground or used to create carbon-containing products like concrete, preventing its re-release into the atmosphere.

“Reaching net-zero carbon emissions requires removing between 400 million and 1.8 billion metric tons of CO2 from the atmosphere annually by 2050,” according to DOE estimates. This funding will propel the commercialization and deployment of advanced DAC technologies across the U.S., reinforcing America’s leadership in clean energy.

Funding Breakdown

The anticipated funding will focus on three areas:

1. Infrastructure Scaling Platforms: Up to $250 million per project to build host sites that provide clean energy and shared CO2 processing for DAC developers.
2. Mid-Scale DAC Facilities: Between 4-8 facilities capturing 2,000 to 25,000 tons of CO2 per year. Maximum of $50 million per project.
3. Large-Scale DAC Facilities: Between 2-6 facilities capturing over 25,000 tons of CO2 per year. Maximum of $600 million per project.

Projects must secure a 50% non-federal cost share to qualify for funding.

Related Article: U.S. DOE Awards $500M to 1PointFive for Direct Air Capture Hub in Texas

Future Opportunities

The first funding solicitation is expected to be released in winter 2024, with further opportunities to follow. OCED’s flexible funding approach ensures that developers can leverage the latest DAC technologies for maximum impact. The Department also plans to host an Industry Day in November to encourage partnerships and collaboration among potential applicants.

This announcement follows the DOE’s earlier selection of 21 projects, including DAC Hubs in Louisiana and Texas, aimed at feasibility assessments and design studies to support future DAC developments.