Guidehouse reviews a new Funding Opportunity Announcement for the development of four regional Direct Air Capture hubs
On December 13, 2022, the United States Department of Energy (DOE) released a Funding Opportunity Announcement (FOA) for the development of four regional Direct Air Capture (DAC) hubs. DAC is a promising new technology that captures carbon dioxide (CO2) from the air, however it is currently costly and requires a significant amount of energy to operate. These hubs will accelerate the commercialization and demonstration of carbon capture and storage technologies, with the goal of lowering the cost of DAC through the development of networks for the capture, transport, and storage of CO2.
The funding for these DAC hubs is part of Section 403018 of the Bipartisan Infrastructure Law (BIL), a sweeping infrastructure bill signed in November 2021. The DOE has made $1.2 billion available via 22 awards for the first round of funding, and applicants have until January 24, 2023, to submit a mandatory letter of intent. Individual awards may vary between $3 and $500 million of federal funds, or less if a significant amount of work has already been completed either at private expense or another DOE award. To be eligible, DAC hubs must:
This program is the largest single federal investment in DAC technology to date, and the DOE has emphasized the importance of community engagement and job creation in these efforts. There are several potential benefits for an electric utility to apply for this grant: