Office: Fossil Energy and Carbon Management

Funding amount: $100,000,000

Period of Availability: Available until expended

Funding Mechanism: Prize

New Program: Yes

Recipients: Industry Partner

Description: The Secretary shall develop requirements for (A) the prize competition process; and (B) monitoring and verification procedures for projects selected to receive a prize under the prize competition and shall award prizes under the prize competition to qualified direct air capture facilities for metric tons of qualified carbon dioxide captured and verified at the point of disposal, injection, or utilization. The term ‘qualified direct air capture facility’ means any facility that (I) uses carbon capture equipment to capture carbon dioxide directly from the ambient air; and (II) captures more than 50,000 metric tons of qualified carbon dioxide annually. The term ‘qualified direct air capture facility’ does NOT include any facility that captures carbon dioxide (I) that is deliberately released from naturally occurring subsurface springs; or (II) using natural photosynthesis.

Eligible Uses: The Secretary shall award prizes under the prize competition to qualified direct air capture facilities for metric tons of qualified carbon dioxide captured and verified at the point of disposal, injection, or utilization.

‘‘(ii) AMOUNT OF AWARD.—The amount of the award per metric ton under clause (i)—‘‘(I) shall be equal for each qualified direct air capture facility selected for a prize under the prize competition; and 
‘‘(II) shall be determined by the Secretary and in any case shall not exceed—

‘‘(aa) $180 for qualified carbon dioxide captured and stored in saline storage formations;

‘‘(bb) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and stored in conjunction with enhanced oil recovery operations; or

‘‘(cc) a lesser amount, as determined by the Secretary, for qualified carbon dioxide captured and utilized in any activity consistent with section 45Q(f)(5) of the Internal Revenue Code of 1986.

Program Announcements: Download the Request for Information

Next Milestone: Estimated application opening date, 4th quarter 2022