Fossil Energy Based Prodcution, Storage, Transport and Utilization of Hydrogen Approaching Net-Zero or Net-Negative Carbon Emissions | DE FOA 0002400

Opportunity Information: Apply for DE FOA 0002400

The Department of Energy, through the National Energy Technology Laboratory (NETL), released Funding Opportunity Announcement DE-FOA-0002400 to support research, development, and demonstration work aimed at making hydrogen derived from fossil energy compatible with net-zero or even net-negative carbon outcomes. The central idea is to modernize and repurpose the United States' large fossil resource base and existing power and industrial infrastructure by pairing fossil-based hydrogen production with major improvements in carbon management, efficiency, and supporting infrastructure. In practice, the opportunity targets technologies that can produce hydrogen at scale while preventing carbon dioxide emissions from reaching the atmosphere, either by capturing and permanently storing carbon or by integrating pathways that can yield a net-negative carbon balance when combined with biomass or waste-derived carbon streams.

This funding opportunity is structured as a discretionary program using cooperative agreements, which typically means DOE expects active involvement during project execution (for example, through milestone reviews, technical direction, and coordination). It is categorized under energy and science/technology research and development and is associated with CFDA 81.089. Eligibility is described as unrestricted, meaning proposals could come from a wide range of entities (industry, universities, national labs, nonprofits, and others), subject to any specific limitations that might be detailed in the full FOA text. The announcement was created on January 15, 2021, with an original closing date of March 1, 2021. The award ceiling is listed as $7,000,000 per award, and DOE anticipated making about 17 awards, indicating an intent to fund a portfolio of projects across multiple technical areas rather than a single large demonstration.

The FOA emphasizes that achieving net-zero or net-negative hydrogen from fossil pathways is not only a technical challenge but also an economic and infrastructure challenge. As a result, the scope goes beyond a single production method and instead covers an integrated hydrogen value chain: production, carbon capture and management, conversion to power or industrial heat, and the systems needed to move and store hydrogen safely and affordably. The program areas reflect this full-chain approach and focus on both near-term options that can leverage existing assets (such as natural gas reforming with carbon capture) and longer-term or higher-impact pathways (such as solid oxide electrolysis and modular gasification approaches that can incorporate wastes and biomass).

One program area targets net-zero or net-negative hydrogen production from modular gasification and co-gasification of mixed wastes, biomass, and traditional feedstocks. This topic is essentially about converting carbonaceous solids and mixed feedstocks into a syngas stream and then producing hydrogen while managing carbon emissions. The "modular" emphasis signals interest in smaller, potentially factory-built systems that could lower capital costs, improve deployability, or serve distributed applications. Co-gasification of biomass or waste with fossil feedstocks is also a route to lowering the net carbon intensity, because the biogenic fraction can offset fossil-derived emissions when paired with high-performing carbon capture, potentially resulting in net-negative outcomes if captured carbon is permanently sequestered.

Another program area focuses on solid oxide electrolysis cell (SOEC) technology development. SOECs produce hydrogen by using electricity (and often steam) at high temperature, which can improve efficiency compared to lower-temperature electrolysis under certain conditions, especially when integrated with high-grade heat sources. Including SOECs in a fossil-energy-oriented FOA suggests an interest in hybrid systems where fossil resources provide heat and/or electricity while carbon emissions are captured, or where existing thermal infrastructure can support efficient hydrogen production. The goal is likely to improve durability, performance, manufacturing readiness, and system integration so SOEC technology can contribute to large-scale, low-carbon hydrogen.

Carbon capture is also a core program area, reflecting the reality that fossil-based hydrogen only approaches net-zero if carbon dioxide is captured at high rates and handled in a way that is verifiable and durable. In hydrogen production from fossil fuels, large CO2 point sources can be created (for example, in reforming or gasification), which can be advantageous for capture. The FOA signals a need for advances that improve capture efficiency, reduce cost and energy penalty, and enable integration with hydrogen production plants. This can include improvements to capture materials and processes, compression and purification steps, and approaches that make high capture rates practical across different production configurations.

Advanced turbines appear as another topic area, tying hydrogen to power generation. Hydrogen can be used as a fuel for turbines to generate electricity, but high-hydrogen or pure-hydrogen combustion introduces technical hurdles such as combustion dynamics, flashback risk, materials issues, and NOx emissions control. Funding in this area likely aims to develop turbine technologies capable of operating on hydrogen-rich fuels reliably and efficiently, supporting decarbonization of the power sector while creating demand for low-carbon hydrogen. It also connects to the broader theme of leveraging existing power infrastructure by adapting it to new, low-carbon fuels.

Natural gas-based hydrogen production is explicitly included, which points to improving mainstream pathways such as steam methane reforming or autothermal reforming when paired with carbon capture (often described as "blue hydrogen"). Work in this area generally centers on increasing overall system efficiency, maximizing CO2 capture rates across the full plant (including both syngas-derived and flue-derived CO2 where applicable), reducing methane leakage impacts, and driving down levelized hydrogen cost. Because natural gas infrastructure is widespread, successful advances here could enable near- to mid-term scaling of hydrogen while longer-term production pathways mature.

The FOA also invests in hydrogen pipeline infrastructure, acknowledging that large-scale hydrogen deployment depends on safe, cost-effective transport. Hydrogen behaves differently than natural gas, with issues such as embrittlement in some metals, leakage due to small molecule size, and the need for compatible compressors, valves, and seals. This program area likely supports R&D on materials, welding and joining, sensor and monitoring systems, integrity management, and potentially the practical limits and economics of blending hydrogen into existing natural gas pipelines versus building dedicated hydrogen lines. Infrastructure readiness is a major determinant of whether hydrogen can move from production centers to industrial users, power plants, or export terminals.

Finally, subsurface hydrogen storage is included, reflecting the importance of large-scale, long-duration storage for both energy security and grid balancing. Underground storage options can include salt caverns, depleted oil and gas reservoirs, and aquifers, each with different technical risks and operational considerations. Key challenges include understanding hydrogen-rock-fluid interactions, microbial activity, cushion gas requirements, storage integrity, withdrawal rates, and monitoring and verification methods. If hydrogen is to support seasonal storage or serve as a strategic commodity, subsurface storage becomes a critical enabling capability, and this FOA signals DOE interest in advancing that capability alongside production and transport.

Overall, this opportunity is designed to fund a coordinated set of projects that collectively make fossil-based hydrogen a low- or negative-carbon energy carrier by combining improved production technologies, rigorous carbon capture, and the infrastructure needed to move, store, and use hydrogen at scale. The expected outcome is a set of technology advancements that reduce lifecycle emissions and cost, increase reliability and safety, and accelerate deployment pathways that make use of existing U.S. fossil and power assets while aligning with decarbonization goals.

• The Department of Energy, National Energy Technology Laboratory in the energy, science and technology and other research and development sector is offering a public funding opportunity titled "Fossil Energy Based Prodcution, Storage, Transport and Utilization of Hydrogen Approaching Net-Zero or Net-Negative Carbon Emissions" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.089.
• This funding opportunity was created on Jan 15, 2021.
• Applicants must submit their applications by Mar 01, 2021. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $7,000,000.00 in funding.
• The number of recipients for this funding is limited to 17 candidate(s).
• Eligible applicants include: Unrestricted (i.e., open to any type of entity above), subject to any clarification in text field entitled Additional Information on Eligibility.

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