DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs

Updated November 29, 2024

DOE’s Carbon Capture and Storage (CCS) and Carbon

Removal Programs

Federally funded research and development (R&D) on

carbon capture and storage (CCS) and carbon removal is

supported primarily by the U.S. Department of Energy

(DOE). This In Focus summarizes recent authorizations and

appropriations for these activities.

Background

CCS is a process that is envisioned to capture humangenerated carbon dioxide (CO2) at its source and store it

underground to prevent its release to the atmosphere.

Captured carbon can also be utilized in products, as

opposed to being stored underground, in a process called

carbon capture, utilization, and storage (CCUS). Carbon

dioxide removal (CDR, sometimes called carbon removal

or negative emissions technologies) is a suite of

technologies and practices that aim to remove CO2 from the

atmosphere and store it underground or in living organisms.

CDR often involves natural CO2 sinks like forests and

croplands, but it can also involve technologies like direct air

capture (DAC). Further discussion of some of these

technologies and historical appropriations for related DOE

R&D activities is provided in CRS Report R44902, Carbon

Capture and Sequestration (CCS) in the United States.

CCS (with or without utilization) and CDR both are viewed

as potential options to address climate change, though they

address different aspects. CCS equipment can reduce CO2

emissions from point sources (e.g., power plants or other

industrial facilities), potentially resulting in low-carbon

facilities. DAC facilities can be located anywhere and can

be potentially carbon negative if the DAC process uses nonemitting energy sources. CDR involving living organisms

(e.g., based on agricultural soils or forestry practices) is

often site-constrained by habitat and related factors.

Program Authorizations

DOE’s carbon capture R&D activities date back to at least

1997 and have historically centered on two components:

carbon capture technology for coal-fired power plants and

underground geologic storage reservoirs. In appropriations

reports leading up to 2020, Congress recommended that

DOE expand its focus to include carbon capture for other

sources and some types of CDR.

Congress codified these and other objectives for DOE’s

carbon capture and carbon removal R&D in P.L. 116-260,

the first major amendments to DOE’s statutory R&D

program objectives since 2007. Most authorizations are

provided by the Energy Act of 2020 (Division Z of P.L.

116-260). The USE IT Act (enacted as part of Division S of

P.L. 116-260) provided additional guidance for DOE

carbon utilization R&D.

The Energy Act of 2020 provides policy direction for

DOE’s CCUS R&D activities in Title IV—Carbon

Management. Sections 4002, 4003, and 4004 address

carbon capture, carbon storage, and carbon utilization,

respectively. In part, the law directs DOE to fund carbon

capture demonstration projects at varying stages of

technological maturity, and to continue funding carbon

storage projects. Funded carbon capture projects must be

applied to different types of facilities, such as natural gasfired power plants and facilities outside the power sector.

The law also directs DOE to fund research to identify novel

uses of carbon and CO2. DOE’s CCUS R&D activities

pursuant to Title IV are authorized at $1,284.0 million in

FY2021; $1,285.3 million in FY2022; $1,131.6 million in

FY2023; $1,132.9 million in FY2024; and $1,084.4 million

in FY2025 (all values rounded to the nearest tenth).

The Energy Act of 2020 provides policy direction for

DOE’s CDR R&D activities in Title V—Carbon Removal.

Section 5001 establishes a new DOE research program on

CDR, to be coordinated with the U.S. Department of

Agriculture and other relevant federal agencies. Section

5001 identifies six CDR options DOE should support:

DAC, bioenergy with CCS, enhanced geological

weathering, agricultural practices, forest management and

afforestation, and planned or managed carbon sinks.

Section 5001 also establishes Air Capture Prize

Competitions for two classes of DAC. The larger

competition, for more mature technologies, is authorized at

$100 million (available until expended) and may award

eligible facilities up to $180 per ton of CO2 captured and

stored. The awards are to be smaller if the captured CO2 is

utilized, including for enhanced oil recovery. DOE’s CDR

R&D activities pursuant to Title V are authorized at $175.0

million in FY2021 (of which $115.0 million is for DAC

prize competitions, to remain available until expended);

$63.5 million in FY2022; $66.2 million in FY2023; $69.5

million in FY2024; and $72.9 million in FY2025 (all values

rounded to the nearest tenth).

Infrastructure Investment and Jobs Act

The Infrastructure Investment and Jobs Act (IIJA; P.L. 11758) made additional amendments to DOE’s CCS and CDR

programs, established several new programs, and provided

supplemental appropriations for FY2022-FY2026 (Table 1)

including funding for some programs authorized by the

Energy Act of 2020.

In particular, IIJA established the Carbon Dioxide

Transportation Infrastructure Finance and Innovation

Program (CIFIA). CIFIA is to provide low-interest loans

for eligible CO2 pipeline projects and grants for initial

excess capacity on eligible new pipelines. CIFIA aims to

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DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs

realize economies of scale for CO2 transportation

infrastructure in the United States and address a “chicken

and egg” problem identified for CCS development. IIJA

provided $2.1 billion for CIFIA for FY2022-FY2023, the

bulk of which was provided for FY2023. CIFIA funds, like

other IIJA funds for CCS, remain available until expended.

advancing carbon sequestration in geologic formations.”

This initiative is authorized at $50 million per year for each

of FY2022 through FY2027. The law also authorizes $1

billion for the period of FY2023-FY2026 for carbon

removal research, demonstration, and development

activities.

Another IIJA-established program focuses on the

development of “commercial large-scale” carbon storage

projects. IIJA provided $2.5 billion for this program for

FY2022-FY2026.

Regular Appropriations

A third program aims to develop four Regional Direct Air

Capture Hubs. Each hub is required to have the capacity to

capture, store, and/or utilize at least 1 million tons of CO2

annually. IIJA provided $3.5 billion for DAC hubs for

FY2022-FY2026. DOE has made funding announcements

and selected projects for these IIJA-funded programs. For

example, DOE is funding two DAC hubs—one in

Louisiana and one in Texas.

CHIPS and Science Act

P.L. 117-167, commonly known as the CHIPS and Science

Act, authorized additional activities. One such activity is

the Carbon Sequestration Research and Geologic

Computational Science Initiative “to expand the

fundamental knowledge, data collection, data analysis, and

modeling of subsurface geology for the purpose of

Regular appropriations for DOE’s CCUS and CDR

programs are provided by the Energy and Water

Development and Related Agencies appropriations bills.

Most of DOE’s CCUS research is funded through its Office

of Fossil Energy and Carbon Management (FECM). DOE

funds CDR activities through FECM and other offices,

including the Office of Science and the Office of Energy

Efficiency and Renewable Energy. According to the

explanatory statement for the Consolidated Appropriations

Act, 2023 (P.L. 117-328), Congress provided $295 million

to CCUS line items for FY2023, up from $225 million in

FY2022. For carbon removal, Congress provided $140

million in FY2023, up from $104 million in FY2022. Table

1 shows a line-item breakdown of DOE CCS and CDR

funding from regular appropriations and supplemental

appropriations provided by IIJA for FY2022 through

FY2024.

Table 1. Funding for Carbon Capture and Storage (CCS) and Carbon Removal R&D Activities at DOE

Budget authority in millions of dollars, rounded to the nearest tenth

Program Area

FY2022

Enacted

(Regular)

FY2022

(Supplemental)

FY2023

Enacted

(Regular)

FY2023

Enacted

(Supplemental)

FY2024

Enacted

(Regular)

FY2024

Enacted

(Supplemental)

Carbon Capture

99.0

1,344.0

135.0

720.0

127.5

720.0

Carbon Utilization

29.0

41.0

50.0

65.3

52.5

66.6

Carbon Storage

97.0

500.0

110.0

500.0

93.0

500.0

CIFIA

n/a

3.0

n/a

2,097.0

n/a

n/a

CCS Subtotal

225.0

1,888.0

295.0

3,382.3

273.0

1,286.6

Carbon Dioxide Removal

(FECM)

49.0

815.0

70.0

700.0

70.0

700.0

Carbon Dioxide Removal

(other offices)

55.0

n/a

70.0

n/a

48.0

n/a

CDR Subtotal

104.0

815.0

140.0

700.0

118.0

700.0

Total

329.0

2,703.0

435.0

4,082.3

391.0

1,986.6

Sources: FY2022 enacted and FY2023 enacted from explanatory statements for P.L. 117-103 and P.L. 117-328. FY2024 enacted from

explanatory statements for P.L. 118-42. Supplemental appropriations 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. Most of the supplemental appropriations for CCS are

administered by DOE’s Office of Clean Energy Demonstrations. The explanatory statement for P.L. 117-103 additionally provided $9 million in

congressionally directed spending for an engineering study of a CCS project in Louisiana. The congressionally directed spending project is not

included in the totals in the table. No congressionally directed spending projects in FY2023 or FY2024 related to CCS or carbon removal.

IF11861

Ashley J. Lawson, Acting Section Research Manager

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DOE’s Carbon Capture and Storage (CCS) and Carbon Removal Programs

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