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US DOE Announces up to $524 Million to Expand Nation’s CO2 Transportation System
21st May 2024
The U.S. Department of Energy (DOE) office of Fossil Energy and Carbon Management (FECM) released two funding opportunity announcements (FOAs) totaling up to $524 in support of expanding carbon transport systems in the United States.
The first FOA, issued on May 2nd, provides up to $500 million in future growth grants under the DOE’s Carbon Dioxide Transportation Infrastructure Finance and Innovation program (CIFIA) for projects that build upon the nation’s CO₂ transportation infrastructure. The infrastructure may include pipelines, rail, trucks, barges, and/or ships that connect two or more CO₂ emissions sources to one or more geologic storage facilities or conversion sites. Project applications must also address societal considerations and impacts and explain community benefits expected to be delivered by the projects.
On May 9th, the DOE re-opened a second FOA providing up to $24 million to support front-end engineering design (FEED) studies focusing on the costs, network configurations, and technical and commercial considerations of CO₂ transport networks connecting emissions sources to centralized locations for permanent geologic storage.
“To successfully achieve our climate goals, it is critical to ensure that we have adequate infrastructure in place to accommodate the growing volumes of carbon dioxide over the next 25 years that we must capture from industrial facilities, power plants, and future direct air capture projects and then transport to geologic formations for permanent storage. Making investments in additional transportation capacity now allows us to plan ahead for future growth and take advantage of economies of scale, resulting in significant monetary and environmental benefits by avoiding unnecessary future construction of separate, redundant transport networks”, said Brad Crabtree, Assistant Secretary of FECM, in a press release.
Selected transport projects will build upon the current CO₂ transport infrastructure, encompassing pipelines, trucks, and freight, which currently transport 60 million tons of CO₂ annually. Expanding this infrastructure is necessary to meet the increase in CO₂ transport demand driven by U.S. net-zero targets by 2050.
More information about CO₂ pipelines in the US is available in the Institute’s recently released thought leadership report, “Building our way to Net-Zero: Carbon Dioxide Pipelines in the United States.” Join the report authors and industry experts - John Godfrey, Senior Principal Consultant, Integrity Solutions & Compliance, Energy Systems at DNV and Max Kieba, Director, Program Development Division, Office of Pipeline Safety, Pipeline and Hazardous Materials Safety Administration - during a webinar on May 22nd at 4pm EDT, to discuss the report’s content and key messages. Register to attend here.
Learn more about the May 2nd FOA here, and the May 9th FOA here.