Last Update: 06/03/2026 at 7:50 AM EST
U.S. Carbon Capture Funding Shifts
Coverage from Clean Air Task Force, E&E News by POLITICO, and others
Articles
6
Latest Article
05/13
Active Days
589
Executive Summary
Federal carbon-management policy is shifting from broad support for capture and storage toward contested funding reallocation, slower direct air capture deployment, and a stronger emphasis on CO2 utilization and coal plant support. DOE actions, legal concerns, and stalled projects now define the field.
Key Points
- DOE continues to support carbon management, but the funding mix has changed from deployment and engineering support toward coal recommissioning and utilization-oriented pathways.
- A major point of conflict is the redirection of money originally intended for carbon capture demonstrations and rural energy programs into support for aging coal plants.
- Direct air capture projects such as Project Cypress remain stalled, with long-running federal review and subsidy uncertainty delaying construction and financing decisions.
- The current policy frame gives more weight to CO2 use in manufacturing and enhanced oil recovery than to storage-only sequestration.
- Shared CO2 pipelines, storage sites, and other transport infrastructure remain a structural bottleneck for scaling capture projects.
- The topic is coherent but politically fragmented: DOE, Congress, project developers, and legal critics are pulling the policy in different directions.
Featured Article
Department of Energy announces a 350 million funding opportunity to retrofit aging coal plants on September 29, with closing date December 8, in the United States.
Coverage Timeline: 589 Days
Hover over any logo to see coverage summary, click for full article.
Additional Articles
⭐⭐⭐⭐⭐
The U.S. Department of Energy, citing grid reliability concerns, announced in a recent funding notice that it will redirect carbon capture and rural energy funds to support coal plant projects across the United States.
⭐⭐⭐
Kyle Haustveit said the Trump administration uses carbon capture primarily for CO2 utilization in manufacturing and oil production during a DOE event in Washington.
The U.S. Department of Energy Loan Programs Office announced financing pathways in the 2020s to scale carbon capture, removal, transport, and storage across the United States.
DOE announced up to $54.4 million in additional carbon management funding on August 13, 2024 for CO2 capture, storage, and conversion, with Round 6 applications due October 14, 2024.
Climeworks and Heirloom Carbon Technology stalled Project Cypress direct air capture in Louisiana after Department of Energy subsidy review delays under the Trump administration.