Washington—The U.S. Department of Energy (DOE) announced today it has modified a funding opportunity to award $100 million available through President Biden’s Investing in America agenda to support states, local governments and public utilities in purchasing products derived from converted carbon emissions. This amendment will increase the maximum Federal share up to five million dollars per award. The goal is to speed up adoption of advanced carbon management technologies, creating a market for environmentally sustainable alternatives in fuels, chemicals and building products sourced from captured emissions from industrial and power generation facilities. This effort aligns with the Biden-Harris Administration’s historic climate and clean energy agenda.

“President Biden’s Investing in America agenda is helping transform harmful pollutants into beneficial products,” said U.S. Secretary of Energy Jennifer M. Granholm. “This funding will be used to scale up carbon management technology, lowering costs and increasing access to clean energy. State and local grants, made possible through the Bipartisan Infrastructure Law, will help demonstrate the economic viability of innovative technologies, resulting in huge net reductions in lifecycle greenhouse gas emissions, while bringing new, good-paying jobs and cleaner air to communities nationwide.”

States, local governments and public utilities and agencies purchase large quantities of products, therefore providing an incentive to purchase products made from carbon emissions is an important method to drive emissions reductions. This program will help to promote and deploy more sustainable product alternatives that reduce net carbon emissions and lessen environmental and health risks related to global warming.

On April 29, 2024, DOE announced the first modification of this FOA 2829 and extended the date of submission of full applications by twelve (12) months to April 30, 2025.  Now, the current modification increases the potential award size, updates procurement and use definitions, updates terms and conditions, and changes community benefits reporting requirements.

Carbon Utilization Procurement Grants
Funded by the Bipartisan Infrastructure Law and managed through DOE’s Office of Fossil Energy and Carbon Management (FECM), the Carbon Utilization Procurement Grants program will help offset 50% of the costs to states, local governments and public utilities or agencies to procure and use products developed through the conversion of captured carbon dioxide and carbon monoxide emissions. The commercial or industrial products to be procured and used under these grants must demonstrate a significant net reduction in greenhouse gas emissions compared to incumbent products via a life cycle analysis (LCA). The LCAs are checked for conformance and approved by DOE’s National Energy Technology Laboratory (NETL). Vendors may submit LCA data on the greenhouse gas emissions reductions of their carbon conversion products via NETL’s Utilization Procurement Grants website.

To ensure that the benefits of the President’s Investing in America agenda is received in every pocket of the nation, applications for this funding opportunity must submit Community Benefit Discussions that carefully address the societal considerations and impacts of their proposed projects, emphasizing active engagement with communities. Applicants must explain how projects are expected to deliver economic and environmental benefits and mitigate impacts, including disadvantaged communities; conduct community and stakeholder engagement; incorporate diversity, equity, inclusion, and accessibility; and promote workforce development and quality jobs. Projects selected under this opportunity will be required to develop and implement strategies to ensure strong community and worker benefits, and report on such activities and outcomes. 

Main Changes in the Current Modification

• The maximum award size for one individual award (DOE Share) is increased from $500,000 to $5 million.
• The vendors who reduce greenhouse gas emissions by at least 10% from the incumbent baseline will be eligible to receive up to $10 million in DOE funding. If 25% reduction can be demonstrated, the vendor will be eligible to receive up to an additional $20 million in DOE funding.
• One vendor may have multiple products active in the UPGrants Program at a time.
• The eligible entity is required to include a budget for Community Benefits Plan in the full application.

Read more details of this funding opportunity announcement here. All questions must be submitted through FedConnect; register here for an account. The FOA will remain open until April 30, 2025, 5:00 PM Eastern Time, or until it is amended or succeeded by another issuance.

FECM minimizes environmental and climate impacts of fossil fuels and industrial processes while working to achieve net-zero emissions across our economy. Priority areas of technology work include carbon capture, carbon conversion, carbon dioxide removal, carbon dioxide transport and storage, hydrogen production with carbon management, methane emissions reduction, and critical minerals production. To learn more, visit the FECM website, sign up for FECM news announcements, and visit the NETL website.

NETL, under the purview of DOE’s Office of Fossil Energy and Carbon Management (FECM), will manage the selected projects.