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DOE’s $100M Carbon Capture and $32M Grid Edge Investment Boosts U.S. Energy Transition

On February 15, the U.S. Department of Energy (DOE) announced investing in two separate initiatives to advance clean energy and grid resilience in the nation. They plan to allocate $100 million to revolutionize carbon capture technology and $32 million for grid-edge innovations.

Let’s explore what’s inside these developmental initiatives.

DOE’s $100 Million Push for Carbon Conversion 

Elaborating further, DOE’s Office of Fossil Energy and Carbon Management (FECM) has unveiled the funding program to boost the development of technologies that capture and convert carbon emissions into valuable products.

Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management said,

“Carbon conversion technologies enable the transformation of captured carbon emissions into sustainable and economically valuable products with many different applications. The funding announced today will help demonstrate the feasibility of these technologies and further develop them for broader-scale adoption.”

This funding, backed by the Bipartisan Infrastructure Law, focuses on pilot-scale testing of carbon conversion technologies. These technologies further target significant carbon mitigation through biological, catalytic, or mineralization methods.

This notice of funding opportunity (NOFO) also emphasizes performance testing and market adoption of carbon-derived products such as chemicals, fuels, building materials, and bioproducts. By integrating life cycle analysis (LCA) into the process, DOE ensures the technologies meet sustainability benchmarks.

All selected projects will be on a pilot scale and will explore the following four key areas:

1. Biological Conversion

At this stage, researchers aim to convert carbon dioxide using photosynthetic and non-photosynthetic methods. This involves supporting algae growth, biomass conversion, and CO2 fermentation to produce sustainable fuels and products.

2. Catalytic Conversion

This involves refining thermochemical and electrochemical techniques to convert carbon dioxide. The focus is on improving reactors, enhancing catalyst performance, and designing more durable electrolyzer systems.

3. Mineralization

Scientists work on transforming carbon dioxide into synthetic aggregates and alternative binders. They also explore new methods for curing and carbonation processes at pilot scales of 10 tons per day.

4. Other Testing and LCA Development 

R&D will support performance testing in specific environments, production of the amount of material needed for testing, performance validation support, and specific tests required as a prerequisite for participation in competitive purchasing and procurement processes.

U.S carbon emissions

DOE’s $32M Boost for Smart Grid-Edge Tech

In a parallel effort, DOE announced $32 million for six pilot projects under the Connected Communities 2.0 program. These projects aim to improve grid resilience, reduce costs, and support new load growth by leveraging advanced grid-edge technologies. The initiative expands on lessons from earlier Connected Communities programs launched in 2020.
Jeff Marootian, principal deputy assistant secretary for DOE’s Office of Energy Efficiency and Renewable Energy noted,
“Providing low-cost, resilient, and reliable energy to all Americans is a top priority for the DOE. As our nation’s energy system faces unprecedented demand growth, it’s more important than ever to deploy solutions that maximize all our energy resources and deliver the most efficient, reliable, and affordable electricity possible. These pilot projects will leverage the latest grid-edge solutions—like energy efficiency, demand-responsive building systems, energy storage, EV smart charging, and advanced grid-planning strategies—to equip communities and utilities with the tools and data they need to confidently manage our evolving electric grid.”

The focus areas include integrating distributed energy resources (DERs) and addressing challenges like rising demand for electric vehicle (EV) charging and industrial sites. DOE plans to award up to $65 million as additional projects are reviewed.

Highlights of Selected Projects:

1. ACCELERATING Connectivity Initiative, Minnesota: This project focuses on residential thermal load management through partnerships with electric cooperatives, optimizing grid assets with scalable solutions. Award: $5.3 million.

2. Purdue University, Indiana: Collaborates with rural electric cooperatives to enhance energy efficiency and resilience. Pathways include financial pilots, DER coordination, and community engagement. Award: $5.9 million.

3. RECHARGE Initiative, California, : Targets residential, business, and industrial energy challenges in San Jose and Fresno County to meet growing electricity demand. Award: $6 million.

Smart Charge Management: A Leap for EV Infrastructure

DOE is also investing in smart charge management systems to integrate EVs seamlessly into the grid. Three standout projects have been awarded funding:

  • One Energy Enterprises, Ohio: Developing a community charging depot for medium- and heavy-duty trucks with advanced microgrid technology. Award: $3.2 million.
  • Baltimore Gas & Electric, Maryland: Introducing grid-aware EV charging technology to reduce peak loads and infrastructure costs. Award: $5.9 million.
  • EV. Energy, Multiple States: Includes California, Florida, Alaska, Rhode Island, and Hawaii. Demonstrating smart charge management across diverse utility territories with innovations like vehicle-to-grid technologies. Award: $6 million.

The DOE’s funding shows a strong commitment to clean energy and grid resilience. By supporting advanced carbon capture and smart grid technologies, these programs aim to create scalable solutions for nationwide use. These steps bring the U.S. closer to a sustainable, flexible energy future.

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