The US Department of Energy (DOE) is launching an ambitious program that will further the commercialization of Direct Air Capture technology, with up to $1.8 billion in funding. This program will be administered by the Office of Clean Energy Demonstrations within the DOE and focuses on the development of mid- and large-scale DAC facilities and infrastructure under the Regional DAC Hubs program. Such removal of carbon dioxide (CO2) directly from the atmosphere seeks to address legacy emissions, climate change, and to promote economic growth in every part of the nation.
Newly announced funding complements momentum from a 2023 solicitation that funded 21 projects, such as two Regional DAC Hubs in Louisiana and Texas. Those earlier projects supported feasibility assessments and engineering studies for full-scale DAC demonstrations. This new round of funding marks a significant step in scaling up DAC technologies to deployment at scale, thereby overcoming critical challenges in scalability and infrastructure.
The initiative is split into three strategic funding areas that mirror the diversified needs of the DAC industry. A maximum of $250 million will be assigned for infrastructure access platforms. Support will be offered to one to three projects in such initiatives, as they help offer access to clean energy and CO2 storage solutions for the developers of DAC, forming a foundation for further projects. The amount that the mid-scale DAC facilities receive can be up to $50 million per project to capture between 2,000 and 25,000 tons of CO2 annually for four to eight facilities. The largest tranche is up to $600 million per project that would be used to finance between two to six large-scale DAC facilities that are expected to capture over 25,000 tons of CO2 annually.
This strategic investment will help the DOE in the vision of making the United States a leader in DAC innovation and commercialization. By bridging early-stage innovation with large-scale implementation, the funding will work on removing existing technological and economic barriers while fostering a robust domestic market for carbon removal technologies. “Widespread deployment of DAC technologies is key to reinforcing our nation’s global competitiveness and delivering new economic opportunities,” said the DOE.
Beyond addressing climate change, the program seeks to generate economic benefits for American communities. By establishing new Regional DAC Hubs, the initiative will create jobs, stimulate local economies, and provide industries with the tools to meet sustainability goals. These hubs are designed not only to capture CO2 but also to integrate seamlessly with existing clean energy infrastructure, ensuring long-term viability and scalability.
The DOE has focused on recurring funding opportunities to support the rapidly advancing DAC industry. This long-term approach is meant to fill critical gaps in technology development and business model scaling, allowing DAC developers to refine their innovations and accelerate commercialization.
The Regional DAC Hubs program is an important step towards addressing the climate crisis and building economic resilience. With investments in the most innovative carbon removal technologies, the DOE seeks to position the United States as a leader in global sustainability efforts, bringing both environmental progress and economic growth.