DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs
Updated January 19, 2024
DOE’s Carbon Capture and Storage (CCS) and Carbon
Removal Programs
Federally funded research and development (R&D) on
The Energy Act of 2020 provides policy direction for
carbon capture and storage (CCS) and carbon removal is
DOE’s CCUS R&D activities in Title IV—Carbon
supported primarily by the U.S. Department of Energy
Management. Sections 4002, 4003, and 4004 address
(DOE). This analysis summarizes recent authorizations and
carbon capture, carbon storage, and carbon utilization,
appropriations for these activities.
respectively. In part, the law directs DOE to fund carbon
capture demonstration projects at varying stages of
Background
technology maturity, and to continue funding carbon
CCS is a process that is envisioned to capture man-made
storage projects. Funded carbon capture projects must apply
carbon dioxide (CO2) at its source and store it underground
to different types of facilities, such as natural gas-fired
to prevent its release to the atmosphere. Captured carbon
power plants and facilities outside the power sector. The
also can be used in products, as opposed to being stored
law also directs DOE to fund research to identify novel uses
underground, in a process called carbon capture, utilization,
of carbon and CO2. DOE’s CCUS R&D activities pursuant
and storage (CCUS). Carbon dioxide removal (CDR,
to Title IV are authorized at $1,284.0 million in FY2021;
sometimes called carbon removal or negative emissions
$1,285.3 million in FY2022; $1,131.6 million in FY2023;
technologies) is a suite of technologies and practices that
$1,132.9 million in FY2024; and $1,084.4 million in
aim to remove CO2 from the atmosphere and store it
FY2025 (all values rounded to the nearest tenth).
underground or in living organisms. CDR often involves
natural CO2 sinks like forests and croplands, but also can
The Energy Act of 2020 provides policy direction for
involve technologies like direct air capture (DAC). Further
DOE’s CDR R&D activities in Title V—Carbon Removal.
discussion of some of these technologies and historical
Section 5001 establishes a new DOE research program on
appropriations for related DOE R&D activities is provided
CDR, to be coordinated with the U.S. Department of
in CRS Report R44902, Carbon Capture and Sequestration
Agriculture and other relevant federal agencies. Section
(CCS) in the United States.
5001 identifies six CDR options DOE should support:
DAC, bioenergy with CCS, enhanced geological
CCS (with or without utilization) and CDR both are viewed
weathering, agricultural practices, forest management and
as potential options to address climate change, though they
afforestation, and planned or managed carbon sinks.
address different aspects of the issue. CCS equipment can
Section 5001 also establishes Air Capture Prize
reduce CO2 emissions from point sources that use fossil
Competitions for two classes of DAC. The larger
fuels (e.g., power plants or other industrial facilities),
competition, for more mature technologies, is authorized at
potentially resulting in low-carbon facilities. DAC facilities
$100 million (available until expended) and may award
can be located anywhere and can be potentially carbon
eligible facilities up to $180 per ton of CO2 captured and
negative if the DAC process uses non-emitting energy
stored. The awards are to be smaller if the captured CO2 is
sources. CDR involving living organisms (e.g., based on
utilized, including for enhanced oil recovery. DOE’s CDR
agricultural soils or forestry practices) is often site-
R&D activities pursuant to Title V are authorized at $175.0
constrained by habitat and related factors.
million in FY2021 (of which $115.0 million is for DAC
prize competitions, to remain available until expended);
Program Authorizations
$63.5 million in FY2022; $66.2 million in FY2023; $69.5
DOE’s carbon capture R&D activities date back to at least
million in FY2024; and $72.9 million in FY2025 (all values
1997 and historically centered on two aspects: carbon
rounded to the nearest tenth).
capture technology for coal-fired power plants and
underground geologic storage reservoirs. In appropriations
Infrastructure Investment and Jobs Act
reports leading up to 2020, Congress recommended that
The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-
DOE expand its focus to include carbon capture for other
58) made additional amendments to DOE’s CCS and CDR
sources and some types of CDR.
programs, established several new programs, and provided
supplemental appropriations for FY2022-FY2026 including
Congress codified these and other objectives for DOE’s
funding some programs authorized by the Energy Act of
carbon capture and carbon removal R&D in P.L. 116-260,
2020.
the first major amendments to DOE’s statutory R&D
program objectives since 2007. Most authorizations are
In particular, IIJA established the Carbon Dioxide
provided by the Energy Act of 2020 (Division Z of P.L.
Transportation Infrastructure Finance and Innovation
116-260). The USE IT Act (enacted as part of Division S of
Program (CIFIA). CIFIA is to provide low-interest loans
P.L. 116-260) provided additional guidance for DOE
for eligible CO2 pipeline projects and grants for initial
carbon utilization R&D.
excess capacity on eligible new pipelines. CIFIA aims to
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realize economies of scale for CO2 transportation
Regular Appropriations
infrastructure in the United States and address a “chicken
and egg” problem identified for CCS development. IIJA
Regular appropriations for DOE’s CCUS and CDR
provided $2.1 billion for CIFIA for FY2022-FY2023, the
programs are provided by the Energy and Water
bulk of which is provided in FY2023. CIFIA funds, like
Development and Related Agencies appropriations bills.
other IIJA funds for CCS, remain available until expended.
Most of DOE’s CCUS research is funded through its Office
of Fossil Energy and Carbon Management (FECM). DOE
Another IIJA-established program focuses on the
funds CDR activities through FECM and other offices,
development of “commercial large-scale” carbon storage
including the Office of Science and the Office of Energy
projects. IIJA provided $2.5 billion for this program for
Efficiency and Renewable Energy. According to the
FY2022-FY2026.
explanatory statement for the Consolidated Appropriations
Act, 2023 (P.L. 117-328), Congress provided $295 million
A third program aims to develop four Regional Direct Air
to CCUS line items for FY2023, up from $225 million in
Capture Hubs. Each hub should have the capacity to
FY2022. For carbon removal, Congress provided $140
capture, store, and/or utilize at least one million tons of CO
million in FY2023, up from $104 million in FY2022. Table
2
annually. IIJA provided $3.5 billion for DAC hubs for
1 shows a line item breakdown of DOE CCS and CDR
FY2022-FY2026.
funding from regular appropriations and supplemental
appropriations provided by IIJA for FY2022 and FY2023.
Table 1. Funding for Carbon Capture and Storage (CCS) and Carbon Removal R&D Activities at DOE
Budget authority in millions of dol ars
FY2022
FY2021
Enacted
FY2022
Program Area
Enacted
(Regular)
Supplemental
Carbon Capture
86.3
99.0
1,344.0
Carbon Utilization
23.0
29.0
41.0
Carbon Storage
79.0
97.0
500.0
CIFIA
n/a
n/a
3.0
CCS Subtotal
188.3
225.0
1,888.0
Carbon Dioxide Removal (FECM)
40.0
49.0
815.0
Carbon Dioxide Removal (other offices)
32.5
55.0
n/a
CDR Subtotal
72.5
104.0
815.0
Total
260.8
329.0
2,703.0
Sources: FY2021 enacted and FY2022 enacted from explanatory statement for P.L. 117-103, Division D. FY2022 supplemental from P.L. 117-
58, Division J.
Notes: FECM = Office of Fossil Energy and Carbon Management, the lead DOE office for CCS and carbon removal research activities. CIFIA =
Carbon Dioxide Transportation Infrastructure Finance and Innovation program. Some of the FY2022 supplemental appropriations for CCS are
to be administered by DOE’s Office of Clean Energy Demonstrations.
IF11861
Ashley J. Lawson, Specialist in Energy Policy
https://crsreports.congress.gov
DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs
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