US Announces $2.5 Billion Funding for Carbon Capture Technologies
The administration will also fund two other carbon management programs
February 24, 2023
The U.S. administration’s Department of Energy (DOE) has announced $2.5 billion in funding for two carbon management programs to significantly mitigate the carbon emissions from power generation and hard-to-abate industrial operations.
The first program, Carbon Capture Large-Scale Pilots, will receive up to $820 million for up to 10 projects focused on derisking transformational carbon capture technologies.
The program will help catalyze major investments for the commercial-scale demonstration of carbon emission sources across the industrial and power sectors of the country.
The second program, Carbon Capture Demonstration Projects, will receive up to $1.7 billion for six projects. The projects target demonstrating commercial-scale carbon capture technologies integrated with the transportation of carbon dioxide and geologic storage infrastructure.
The DOE aims to fund demonstration projects under the second program that can be replicated and deployed at power plants and major industrial spots producing cement, pulp and paper, iron, and steel that emit increased levels of carbon into the atmosphere.
U.S. Secretary of Energy Jennifer M. Granholm said, “By focusing on some of the most challenging, carbon-intensive sectors and heavy industrial processes, today’s investment will ensure America is on a path to reach net-zero emissions by 2050 and at the forefront of the global clean energy revolution.”
The Biden-Harris administration also announced two additional programs— the Carbon Storage Assurance Facility Enterprise and the Carbon Dioxide Transportation Infrastructure Financing and Innovation Act. They will develop geological storage sites to commercialize carbon management and further accelerate it in the U.S.
All four programs are managed by the Office of Clean Energy Demonstrations in collaboration with the Office of Fossil Energy and Carbon Management and the National Energy Technology Laboratory.
Last July, the European Commission said it will invest €1.8 billion (~$1.8 billion) in 17 large-scale innovative clean energy projects including carbon capture projects.
Indian government think-tank NITI Aayog said in a study released last November that carbon capture utilization and storage was key to ensuring sustainable development and growth in India, particularly for producing clean energy.