OPPORTUNITY REPORT:

Improving Efficiency, Reliability, & Flexibility of Coal-Based Power Plants

November 3, 2025

KEY INFORMATION

Opportunity Number: DE-FOA-0003606

Agency: Department of Energy, Office of Fossil Energy and Carbon Management

Total Program Funding: $100,000,000

Award Range: $400,000 - $48,000,000

Cost Share: Phase I and Phase II: 20%; Phase III: 50%

Est. Number of Awards: 15

Release Date: October 31, 2025

Due Date: January 7, 2026

PROGRAM OVERVIEW

The purpose of this NOFO is to seek applications for projects to design, implement, test, and validate three strategic opportunities for the refurbishment or retrofit of existing coal power plants. The grant’s topic areas support the development of transformational technologies that will significantly improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of coal and natural gas use, including in manufacturing and industrial facilities.

The NOFO will be carried out in three phases, with a down-select between Phase I and Phase II and a go/no-go decision point between Phase II and Phase III.

Phase I (Project Definition and Preliminary Design and Engineering)

12-month phase, with work completed within 9 months, and 3 months for the Phase II review. Includes:

Supporting efforts to secure team commitments (including host sites and recipient cost share for Phase II & III);
Complete a preliminary front-end engineering and design study (pre-FEED) including cost estimate and schedule for design, construction, and operation; and
Complete an environmental information volume.

Phase II (Final Engineering and Detailed Design)

12-month phase. Includes:

Securing a commitment from an Engineering Procurement Contractor (EPC);
Complete a Front-End Engineering Design (FEED) study;
Secure construction/operation cost share funding; and

Complete the National Environmental Policy Act (NEPA) process required for demonstration and validation.

Phase III (Technology Implementation and Validation)

36-month phase. Includes:

Will support implementation and testing at coal facilities.
Applicants should have already experienced technical success so that the next step is a commercial demonstration.

TOPIC AREAS

Topic 1: Development and Implementation of Advanced Wastewater Management Systems

Up to 5 awards with total Federal funding of $50,000,000. For Phase I, up to $400,000 is available in federal share; for Phase II + Phase III, up to $48 million is available in federal share. The topic area will focus on the development, engineering, and implementation of transformational wastewater management systems capable of cost-effective recovery of water and other byproducts from wastewater streams. Technologies are to facilitate the development of transformational wastewater management systems for improved environmental performance by reducing the use and managing the discharge of water in power plant operations.

Topic 2: Engineering and Implementation of Dual Firing Retrofits

Up to 5 awards with total Federal funding of $25,000,000. For Phase I, up to $400,000 is available in federal share; for Phase II + Phase III, up to $23 million is available in federal share. The topic area will focus on the engineering, design, and implementation of retrofit systems for existing coal plants that enable automatic switching between coal and natural gas without compromising critical operational parameters. Technologies are to facilitate the development of transformational systems that enhance fuel flexibility, allowing seamless transition between coal-firing and gas-firing operations.

Topic 3: Development and Testing of Natural Gas Cofiring Systems

Up to 5 awards with total Federal funding of $25,000,000. For Phase I, up to $400,000 is available in federal share; for Phase II + Phase III, up to $23 million is available in federal share. The topic area will focus on the development, engineering, and implementation of transformational coal-natural gas co-firing systems and related system components. Technologies are to facilitate the development of cost-effective retrofit options that maximize gas co-firing capability while optimizing emissions performance and minimizing efficiency penalties. The NOFO seeks applications that advance technologies currently at TRL 7 or higher, with successful projects expected to achieve TRL 8.