US allocates $890 million for power-plant carbon capture projects

The US Department of Energy announced up to $890 million for three carbon capture projects at coal and gas power plants in California, North Dakota and Texas, potentially preventing 7.75 million metric tons of CO2 annually. The funding signals public support for power-sector carbon capture, relevant as India's coal-heavy power fleet weighs decarbonization options.

The US Department of Energy's Office of Clean Energy Demonstrations announced up to $890 million for three projects demonstrating technologies to capture, transport and store carbon emissions, funded under the Bipartisan Infrastructure Law, in California, North Dakota and Texas. The projects could prevent approximately 7.75 million metric tons of CO2 annually, equivalent to 1.7 million gasoline-powered cars, while piloting three novel solvents at commercial scale with storage across diverse geological settings. A national briefing was scheduled for December 18, 2023, with virtual community briefings in January 2024.

The funding affects three projects: the Baytown Carbon Capture and Storage Project at a Texas natural gas combined-cycle plant, exploring greywater cooling and Minority-Serving Institution partnerships; Project Tundra adjacent to the Milton R. Young coal-fired station in North Dakota, storing CO2 in saline formations with Community Benefits Agreements and potential Project Labor Agreement; and the Sutter Decarbonization Project at a California gas plant using air-cooling to eliminate cooling-water use. These demonstrations are relevant to power utilities and coal- and gas-plant operators evaluating commercial-scale capture retrofits.

Power utilities and plant operators should monitor these commercial-scale demonstrations for cost, performance and water-use innovations, including air-cooling and greywater approaches addressing local community concerns. Indian power-sector stakeholders, given a coal-heavy fleet, can track whether novel solvents prove viable for retrofitting existing plants. Stakeholders should note the DOE's phased, go/no-go project management, where award selection does not guarantee funding, and watch the January 2024 community briefings and subsequent negotiation outcomes for project advancement signals.

Key figure — Funding: up to $890 million for three carbon capture projects