The US Department of Energy (DOE) has announced plans to issue a funding opportunity for regional direct air capture (DAC) hubs.
Part of the DOE’s Office of Fossil Energy and Carbon Management, the $1.8bn initiative aims to support the development and scaling of DAC technologies across the United States.
The funding is part of a broader strategy to create a comprehensive DAC ecosystem, which will include both large-scale facilities and the necessary infrastructure to transport and store captured carbon.
The DOE plans to allocate up to $600 million per large-scale DAC project, with smaller mid-scale facilities eligible for up to $50 million each.
“DAC is a crucial tool in addressing the climate crisis,” the DOE stated, highlighting the potential of these hubs to significantly reduce carbon in the atmosphere.
These hubs will function as regional platforms, enabling efficient capture, storage and eventual utilisation of CO2, a cornerstone of the U.S.’s evolving carbon management strategy.
The DOE’s funding for DAC hubs targets three types of projects:
- Infrastructure scaling platforms: Sites providing clean energy and CO2 processing support, with up to $250 million available per project.
- Mid-scale DAC facilities: Projects capturing 2,000–25,000 tons of CO2 per year, eligible for up to $50 million each.
- Large-scale DAC facilities: Must capture at least 25,000 tons annually, with up to $600 million available per project.
All projects require a 50% non-federal cost share and support US Net Zero emissions by 2050
The funding opportunity, expected to support multiple hubs across various regions, will focus on large-scale DAC facilities and infrastructure scaling. The DOE revealed that the hubs will serve not just as carbon removal centres but also as platforms to drive further advances in carbon management technologies.
“By investing in these hubs, we are ensuring that the U.S. remains at the forefront of carbon removal technologies while creating jobs and strengthening our energy security,” the DOE added. This recurring program marks a significant step forward in deploying and scaling DAC technologies, helping to create sustainable solutions for long-term climate challenges.
The DOE is expected to release more details on the application process and specific funding amounts in the coming months, inviting stakeholders to participate in shaping the future of carbon capture in the US.
