U.S. Energy Department Announces $518 Million for Carbon Storage Infrastructure Projects

The U.S. Energy Department on Oct. 21 announced the selection of 23 projects across 19 states to receive $518 million for the development of decarbonization infrastructure, such as carbon capture and storage. The projects, funded by the 2021 Infrastructure and Investment Jobs Act, will support the Carbon Storage Assurance Facility Enterprise, or CarbonSAFE, Initiative. The objective is to advance and commercialize novel decarbonization technology with the ability to store over 50 million metric tons of carbon dioxide over a 30-year duration.

The department selected projects under different phases of the CarbonSAFE initiative. The Office of Fossil Energy and Carbon Management and the National Energy Technology Laboratory will manage the selected projects. Since January 2021, over $1.41 billion has been invested in advancing carbon transport and storage technologies. This includes $242 million awarded to nine projects in May 2023 and $444 million for 16 projects in November 2023, both part of the Carbon Storage Validation and Testing initiative.

Before releasing the next round of funding, DOE will assess the CarbonSAFE Initiative to ensure it supports carbon storage infrastructure efficiently and responsibly. As part of this process, DOE is issuing a request for information (RFI) to gather input from various stakeholders. Responses are due by Dec. 20.

Of the 23 selections, 12 fall under CarbonSAFE Phase II, focusing on Storage Complex Feasibility. These projects will undergo geological assessments to evaluate the feasibility of potential commercial-scale carbon storage sites throughout the U.S. Nine of the project selections fall under the CarbonSAFE Phase III: Site Characterization and Permitting category. These projects have passed the feasibility assessments and are now at the stage of extensive site characterization securing Underground Injection Control Class VI permits required by the U.S. Environmental Protection Agency.

The Pineywoods Carbon Capture and Storage Hub in Michigan, was selected under the CarbonSAFE Phase III.5: NEPA, FEED Studies, and Storage Field Development Plan Only. The project received around $4.5 million from the department and will now fulfill the department’s National Environmental Policy Act, or NEPA, requirements.

The department selected a project, based in North Dakota, for the construction stage or Phase IV of CarbonSAFE. The company, DCC East Project, secured almost $50 million from the department to build a large-scale carbon storage facility that could store up to 80 million metric tons of carbon dioxide.

There has been a recent push from the department and other state agencies to advance carbon management and carbon capture programs. Earlier this month, the department released its Carbon Management Strategy, an extensive roadmap to highlight various strategies to effectively advance decarbonization until 2030.