- DOE is offering up to $48M (FOA DE-FOA-0002730) for FEED studies of regional CO2 transport networks, with $1.5M$6M awards and at least 20% cost share.
- A $6M project selected in Dec 2024 will design an onshore-to-offshore CO2 transport system linking Corpus Christi-area sources to storage sites near Mustang Island and Port Aransas North, Texas.
- DOE expects the U.S. must capture and store roughly 4001,800 MtCO2 per year by mid-century, requiring rapid buildout of multimodal transport networks.
- Eligible applicants include universities, nonprofits, governments, and tribal nations, and DOE says it has committed about $1.4B since 2021 to CO2 transport and storage infrastructure.
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The Department of Energy’s FOA DE-FOA-0002730 under the Bipartisan Infrastructure Law is a critical component in scaling U.S. carbon capture, transport, and storage (CCUS) infrastructure. The total envelope of $48 million for this round (Round 4) reflects both the magnitude of the challenge and an intent to develop multiple regional transport networks capable of linking multiple capture sources to conversion or storage sites. The requirement of cost-sharing and minimum award size is designed to ensure applicants have skin in the game and capacity to execute engineering studies.
The December 2024 selection demonstrates a strategic push toward linking onshore emissions sources in Texas to offshore storage, building on existing site characterizations and pre-FEED work. This augurs toward a hub-and-spoke model where multiple capture sites converge through centralized pipelines or transport routes to shared storage formations, improving scalability and efficiency.
Meeting the projected need—400 to 1,800 MtCO₂/year by 2050—requires not just funding but establishing regulatory, commercial, and technical frameworks that support multimodal transport, interjurisdictional coordination, and environmental justice. DOE is explicitly prioritizing engineered transport modalities beyond pipelines (e.g., ship, rail, barges), and incorporating community and stakeholder engagement as part of FEED planning, which could reduce bottlenecks related to permitting and local resistance.
Strategic implications include blue-chip infrastructure investment opportunities, competitive advantages for firms with experience in offshore engineering or multimodal transport, and early-mover benefit in regions rich in both industrial CO₂ sources and geological storage potential. However, open questions persist: whether the awarded FEED studies will align with tax and regulatory incentives like 45Q; how cost overruns and liability insurance will be handled; and the timeline by which pipeline/transport build-out can reach commercial scale before mid-century targets.
Supporting Notes
- $48 million total funding announced under the fourth opening of FOA DE-FOA-0002730 for CO₂ transport networks, awards expected between $1.5M-$6M each, with ≥20% cost-sharing required.
- One project awarded $6 million on December 13, 2024, to explore transport of CO₂ from onshore sources to offshore storage in Texas state waters (Mustang Island and Port Aransas North).
- FEED studies cover multimodal transport (pipeline, rail, truck, barge, ship) including combinations, and include community engagement for routing and safety mitigation.
- DOE estimates U.S. will need to capture and permanently store approximately 400–1,800 million metric tons of CO₂ annually by mid-century to reach net-zero emissions economy.
- DOE has committed about $1.4 billion since January 2021 to projects advancing CO₂ transport and storage technologies and infrastructure.
- Eligible applicants include institutions of higher education, for-profit and non-profit organizations, state and local governments, and tribal nations.