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DEFE0032440

Cooperative Agreement

Overview

Grant Description
This project proposes to demonstrate the feasibility of the safe and reliable conversion of a mature oil and gas field in the Permian Basin into a dedicated carbon dioxide (CO2) storage facility.

This integrated capture, transport, and storage project consists of the following objectives:

1. For initial CO2 supply, examination of longer validation of subsurface characterization, storage capacity and injectivity, and technical/economic performance to inform the field conversion final investment decision and the preparation and submission of one or more Environmental Protection Agency Underground Injection Control (UIC) Class-VI authorization to construct well permits.

2. Development and demonstration of reliable and cost-effective methods for evaluating the conditions, potential risks, and appropriate mitigation measures presented by the legacy wellbores in the area, as well as assessing the potential leakage risks in the event of the possible re-activation of existing geologic faults from CO2 injection.

3. Confirmation of CO2 sources and transportation options, including incorporating direct air capture (DAC), other anthropogenic sources, and utilization of the existing CO2 transportation infrastructure.

The project objectives will be accomplished via the following activities:

Detailed site and subsurface characterization; development of a storage field development plan; development of a risk assessment and mitigation plan; development of one or more permit applications for UIC Class-VI wells; performing CO2 pipeline front end engineering design studies and confirming CO2 source feasibility studies for CO2 supply sources; ensuring National Environmental Policy Act compliance; examining and resolving legal considerations; and development of the business and financial plans; and meaningful community, labor, and stakeholder engagement plan, including existing burdens through the development of a full Justice 40 plan and activities.

This project will assess the feasibility for safe and reliable mature oil and gas field conversion to dedicated CO2 storage, with a focus on detailed site characterization and risk mitigation related to legacy wells and geologic faults.

This will demonstrate the path for widespread low-cost CO2 sequestration for similar oilfield conversions to CO2 storage.

Public engagement with potentially affected stakeholders, property owners, disadvantaged communities, and environmental justice communities will be an important outcome to achieve overall support across these groups with minimal opposition to the proposed project.
Awardee
Funding Goals
THIS FUNDING OPPORTUNITY SOLICITS PROJECTS TO SUPPORT THE DEVELOPMENT OF NEW AND EXPANDED LARGE-SCALE, COMMERCIAL CARBON STORAGE PROJECTS WITH CAPACITIES TO STORE 50 OR MORE MILLION METRIC TONS (MT) OF CARBON DIOXIDE (CO2). THESE PROJECTS WILL SUPPORT THE CARBON STORAGE ASSURANCE FACILITY ENTERPRISE (CARBONSAFE) INITIATIVE AND FOCUS ON EFFORTS RANGING FROM DETERMINING STORAGE COMPLEX FEASIBILITY TO THE DETAILED SITE CHARACTERIZATION, PLANNING, AND PERMITTING STAGES OF PROJECT DEVELOPMENT UNDER CARBONSAFE.
Place of Performance
Des Plaines, Illinois 60018-1804 United States
Geographic Scope
Single Zip Code
Analysis Notes
Amendment Since initial award the End Date has been shortened from 03/31/26 to 10/10/25.
Projeo was awarded Permian Basin Oil Field Conversion to CO2 Storage: Feasibility & Risk Mitigation Cooperative Agreement DEFE0032440 worth $24,999,674 from the Office of Fossil Energy and Carbon Management in October 2024 with work to be completed primarily in Des Plaines Illinois United States. The grant has a duration of 1 year and was awarded through assistance program 81.089 Fossil Energy Research and Development. $6,262,622 (20.0%) of this Cooperative Agreement was funded by non-federal sources. The Cooperative Agreement was awarded through grant opportunity Bipartisan Infrastructure Law (BIL): Storage, Validation and Testing (Section 40305): Carbon Storage Assurance Facility Enterprise (CarbonSAFE): Phases III, III.5, and IV.

Status
(Complete)

Last Modified 11/12/25

Period of Performance
10/1/24
Start Date
10/10/25
End Date
100% Complete

Funding Split
$25.0M
Federal Obligation
$6.3M
Non-Federal Obligation
$31.3M
Total Obligated
80.0% Federal Funding
20.0% Non-Federal Funding

Activity Timeline

Interactive chart of timeline of amendments to DEFE0032440

Transaction History

Modifications to DEFE0032440

Additional Detail

Award ID FAIN
DEFE0032440
SAI Number
None
Award ID URI
SAI EXEMPT
Awardee Classifications
For-Profit Organization (Other Than Small Business)
Awarding Office
892433 NATIONAL ENERGY TECHNOLOGY LABORATORY
Funding Office
892404 FOSSIL ENERGY AND CARBON MANAGEMENT
Awardee UEI
CU9SYYYRBPD4
Awardee CAGE
80KZ1
Performance District
IL-03
Senators
Richard Durbin
Tammy Duckworth
Modified: 11/12/25