The U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) has revealed a substantial funding initiative of up to $890 million for three groundbreaking projects designed to showcase technologies aimed at capturing, transporting, and securely storing carbon emissions. This funding, allocated under the President’s Bipartisan Infrastructure Law, is directed towards projects located in California, North Dakota, and Texas. These initiatives have the potential to prevent approximately 7.75 million metric tons of carbon dioxide (CO2) emissions annually, equivalent to the yearly emissions of 1.7 million gasoline-powered cars.
The selected projects are pioneering the use of three novel solvents at a commercial scale, coupled with carbon transport and storage in diverse geological settings. The chosen projects for award negotiation include:
- Baytown Carbon Capture and Storage Project (Baytown, Texas): This initiative targets CO2 capture from the Baytown Energy Center, a natural gas combined-cycle power plant, with plans to transport and store the captured CO2 on the Gulf Coast. It explores the use of greywater cooling to reduce freshwater consumption and emphasizes partnerships with Minority-Serving Institutions for job access and workforce development.
- Project Tundra (Center, North Dakota): This carbon capture system will be developed adjacent to the Milton R. Young Station, a coal-fired power plant. The captured CO2 will be stored in saline geologic formations. The project focuses on Community Benefits Agreements, workplace, and environmental concerns, aiming to support rural quality of life and responsible project development. Organized labor engagement is a key aspect, with discussions on negotiating a Project Labor Agreement.
- Sutter Decarbonization Project (Yuba City, California): This project aims to demonstrate a commercial-scale carbon capture system at the Sutter Energy Center, a natural gas combined-cycle power plant. The captured CO2 will be permanently sequestered underground. Notably, the project introduces an air-cooling system at a carbon capture facility to eliminate cooling water usage, addressing a critical concern of the local community. The project is currently in negotiation for a Project Labor Agreement and Community Benefits Agreement.
On December 18, 2023, the DOE will host a national briefing to provide further details about the selected projects, followed by virtual community briefings in January 2024 to engage with local stakeholders in each location.
The selection for award negotiations does not guarantee funding issuance, as DOE and applicants will undergo a negotiation process with the possibility of cancellation or rescindment. OCED will evaluate the projects through a phased approach to project management with “go/no-go” decision points between each phase.
