Energy Department Allocates $625M from Carbon Capture Funds to Coal Power Programs
The Energy Department is allocating $625 million to coal-focused programs aimed at modernizing coal facilities, utilizing funds from carbon capture technology initiatives. This decision follows the cancellation of previously selected carbon capture projects by Secretary Chris Wright, allowing coal plants to receive federal support for upgrades without a mandatory commitment to future carbon capture implementation.
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The Energy Department is allocating $625 million towards coal-focused programs aimed at recommissioning and modernizing coal facilities. This funding is sourced from carbon capture technology programs under the Energy Policy Act of 2005 and the Infrastructure Investment and Jobs Act.
A Notice of Funding Opportunity indicates that $350 million will come from unobligated balances designated for carbon capture demonstrations. The Biden administration's previously selected projects for carbon capture have been cancelled by Secretary Chris Wright, allowing for a shift towards coal revival. The funding mechanism permits coal plants to receive federal dollars for upgrades without a mandatory commitment to implement carbon capture technologies in the future, as grant recipients can opt out of later phases without penalty.
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