Direct Air Capture Combined With Dedicated Long-Term Carbon Storage, Coupled to Existing Low-Carbon Energy | DE FOA 0002560

Opportunity Information: Apply for DE FOA 0002560

The Department of Energy's National Energy Technology Laboratory (NETL) released this discretionary funding opportunity, DE-FOA-0002560, to support front-end engineering design (FEED) studies for advanced Direct Air Capture (DAC) projects that are paired with dedicated, long-term carbon storage and connected to existing low-carbon energy sources. The core aim is to move DAC concepts beyond early R&D and into engineering-ready designs by funding the detailed planning, system definition, and technical groundwork needed before final design, procurement, construction, and operation. In practical terms, the government is paying for the "design and engineering maturity" phase so stronger, better-defined DAC projects can proceed toward deployment with lower technical and financial risk.

A central requirement of the announcement is performance at meaningful scale: the proposed DAC system must be capable of removing at least 5,000 metric tonnes per year (tonne/yr) of net carbon dioxide from ambient air. The word "net" is important because it is based on life cycle analysis, meaning applicants must account for emissions associated with running the system and producing/using its inputs (such as electricity, heat, sorbents, chemicals, compression, and other process needs). The expectation is not simply to capture a gross amount of CO2 at the contactor, but to demonstrate that, once the full life cycle emissions are considered, the project still achieves at least 5,000 tonne/yr of net removal.

The opportunity is specifically oriented toward DAC systems that result in durable climate benefits through either long-duration carbon storage or carbon dioxide conversion/utilization pathways. It emphasizes "dedicated long-term carbon storage," signaling a preference for solutions that place captured CO2 into storage options intended to keep it out of the atmosphere for long time horizons, rather than short-lived uses. At the same time, the announcement leaves room for CO2 conversion or utilization, as long as the overall approach aligns with sustained emissions reduction goals and meets the net-removal requirement under life cycle analysis.

Another defining feature is the requirement to couple the DAC system to existing low-carbon energy. DAC is typically energy-intensive, so the carbon intensity of the power and heat supply can make or break the net-removal claim. By focusing on projects integrated with low-carbon energy that already exists, the FOA is steering applicants toward configurations that can credibly deliver net-negative outcomes and potentially reduce reliance on fossil energy, while also highlighting real-world integration constraints like interconnection, energy availability, operational profiles, and thermal/power matching.

The funding instrument is a cooperative agreement, which generally means DOE expects substantial involvement during the project, such as active technical oversight, milestone reviews, and coordinated decision points. This is consistent with FEED work, where agencies often want visibility into engineering assumptions, cost and schedule models, risk management, and key design choices because those outputs influence whether projects can later proceed to construction and operation. The activity category is Energy, and the CFDA number listed is 81.089, which corresponds to DOE financial assistance programs.

Eligibility is described as unrestricted, meaning the competition is broadly open to any type of entity, subject to any additional clarifications contained in the full FOA text. That typically allows participation from private companies, universities, national laboratory partners (as allowed by their governing rules), nonprofits, and state or local entities, as well as consortia or teams, though the precise rules about teaming, cost share, and prime/sub relationships would be specified in the full announcement.

Financially, the FOA indicates an award ceiling of $4,375,000 per award, with an expectation of about five awards. Those figures suggest DOE intended to fund multiple FEED studies in parallel rather than a single large demonstration build, reinforcing that this program is about engineering design and project definition rather than full-scale deployment capital. The original posting date was October 26, 2021, and the original closing date was December 22, 2021, placing it in a specific funding cycle aimed at accelerating DAC readiness during that period.

Overall, the opportunity can be read as a bridge between lab-scale innovation and field deployment: DOE/NETL sought FEED studies for DAC systems that are (1) large enough to matter at the early commercial scale, (2) demonstrably net-negative when evaluated across the life cycle, (3) integrated with low-carbon energy to protect the integrity of net removals, and (4) tied to long-term storage or other pathways that meaningfully and durably manage the captured carbon.

• The Department of Energy, National Energy Technology Laboratory in the energy sector is offering a public funding opportunity titled "Direct Air Capture Combined With Dedicated Long-Term Carbon Storage, Coupled to Existing Low-Carbon Energy" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.089.
• This funding opportunity was created on Oct 26, 2021.
• Applicants must submit their applications by Dec 22, 2021. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $4,375,000.00 in funding.
• The number of recipients for this funding is limited to 5 candidate(s).
• Eligible applicants include: Unrestricted (i.e., open to any type of entity above), subject to any clarification in text field entitled Additional Information on Eligibility.

Apply for DE FOA 0002560

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