• The U.S. Department of Energy announces up to $1.8 billion for mid- to large-scale Direct Air Capture (DAC) projects.
• Funding spans infrastructure, mid-scale, and large-scale facilities to drive DAC commercialization.
• New Regional DAC Hubs aim to capture legacy emissions and support economic growth.

The U.S. Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED) has opened applications for $1.8 billion in funding to accelerate Direct Air Capture (DAC) technology. This initiative focuses on building mid- and large-scale DAC facilities and infrastructure platforms under the Regional DAC Hubs program.

Strategic Goals:

The funding supports projects at varying stages of development, aiming to commercialize innovative technologies that remove carbon dioxide (CO2) from the atmosphere. “Widespread deployment of DAC technologies is key to reinforcing our nation’s global competitiveness and delivering new economic opportunities,” the DOE stated.

Building on Success:

This round builds on a 2023 solicitation that supported 21 projects, including two Regional DAC Hubs in Louisiana and Texas. The additional projects received funding for feasibility assessments and engineering studies, paving the way for future DAC demonstrations.

Related Article: Heirloom Secures $150M Series B to Scale Direct Air Capture Technology

Funding Breakdown:

OCED’s $1.8 billion program is divided into three areas:

1. Infrastructure Access Platforms: $250 million max per project for 1-3 platforms offering developers sites with clean energy access and CO2 storage solutions.
2. Mid-Scale DAC Facilities: $50 million max per project for 4-8 facilities capturing 2,000-25,000 tons of CO2 annually.
3. Large-Scale DAC Facilities: $600 million max per project for 2-6 facilities capturing over 25,000 tons of CO2 annually.

Future Outlook:

OCED plans recurring funding opportunities to support the rapidly advancing DAC industry. These investments will fill critical gaps, enabling developers to refine technologies and scale business models. “The funding aims to bridge early-stage innovation with large-scale implementation,” said DOE representatives.

By focusing on DAC technology, this initiative addresses climate change while creating new economic pathways for American communities and industries.

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