CCS is a process  that involves capturing man-made CO at its source and storing it  permanently underground. The program for fossil energy R&D also  includes the development of technological solutions for the development  of U.S. unconventional oil and gas domestic resources, such as from  shale formations. Both plants retrofitted CCS  technology to existing plants. DOE Provided $2.66 Billion in Funding for 794 Advanced Fossil Energy R&D Projects Started from Fiscal Years 2010 through 2017 DOE Provided $1.12 Billion in Funding for Nine Large Demonstration Projects Started from Fiscal Years 2010 through 2017

DOE provided $2.66 billion in funding for 794 advanced fossil energy  R&D projects started from fiscal years 2010 through 2017. These 794  projects included 9 later-stage large demonstration projects and 785 other  advanced fossil energy R&D projects. DOE provided $1.12 billion in  funding to nine large projects aimed at demonstrating the commercial  viability of CCS technologies. Six  demonstration projects researched CCS technologies using coal, while  three used other fuels, namely methane, ethanol, and petcoke. Three of those demonstration projects remained active at the  end of fiscal year 2017. Four projects had their support withdrawn by  DOE, and two were withdrawn by the recipient. These projects ended due  to several factors such as a lack of technical progress, the closure of the  Recovery Act appropriations account on September 30, 2015, and  changing economic conditions—such as decreased natural gas prices  which resulted in changes in the relative prices of coal and natural gas. The objective of this project is to  demonstrate the ability to capture 90 percent of the CO According to DOE documentation, DOE’s  involvement with the project is scheduled to conclude in  December 2019. Most of DOE’s 785 Advanced Fossil Energy Projects Researched Coal Technologies

Of the 785 projects, 698 (about 89 percent) involved coal technologies,  receiving $1.40 billion (about 91 percent) of the $1.54 billion in funding  DOE provided for the projects. Specifically, DOE identified the  following four categories as oil and gas-related research areas:
Gas Hydrates: The development of technologies to find,  characterize, and recover methane from gas hydrates through  field testing, numerical simulation, and laboratory experimentation,  among other things. Appendix I: Objectives, Scope, and Methodology

In this report, we describe 1) the Department of Energy’s (DOE) funding  of advanced fossil energy research and development (R&D) projects  started from fiscal years 2010 through 2017 and the types of projects and  recipients that received funding, and 2) DOE’s loan guarantees, if any, for  advanced fossil energy projects from fiscal year 2006 through August  2018. You asked us to review DOE’s funding for advanced fossil energy  projects. For  purposes of our report, we use the term awards to refer to both grants and cooperative  agreements. To describe the status of DOE’s advanced fossil energy loan guarantees,  we reviewed relevant laws, regulations, and guidance, as well as past  GAO reports describing DOE’s administration of the loan program.
Why GAO Did This Study

One aspect of DOE's mission is to secure U.S. leadership in energy technologies. To that end, DOE funds R&D for energy projects, including for advanced fossil energy (innovative technologies for coal, natural gas, and oil). DOE provides funding for R&D projects, including large projects designed to demonstrate the commercial viability of technologies. Also, DOE is authorized to make loan guarantees to support certain energy projects through its Loan Guarantee Program, which is administered by its Loan Programs Office.
GAO was asked to review DOE's funding for advanced fossil energy projects. This report describes DOE's funding for advanced fossil energy R&D projects started from fiscal years 2010 through 2017 and the types of projects and recipients that received funding, among other objectives. For purposes of this report, GAO used the term funding to mean obligations.
GAO analyzed relevant laws, regulations, and guidance; DOE data on R&D funding for fiscal years 2010 through 2017; and DOE documents. GAO also interviewed DOE officials in the Office of Fossil Energy, the National Energy Technology Laboratory, and the Loan Programs Office.

What GAO Found

The Department of Energy (DOE) provided $2.66 billion in funding, or obligations, for 794 research and development (R&D) projects started from fiscal years 2010 through 2017 to develop advanced fossil energy technologies. Such technologies include processes for converting coal into synthesis gas composed primarily of carbon monoxide and hydrogen, and recovering methane from gas hydrates. Of the $2.66 billion, DOE provided $1.12 billion in funding for 9 later-stage, large demonstration projects, which were to assess the readiness for commercial viability of carbon capture and storage (CCS) technologies. CCS involves capturing man-made carbon dioxide at its source and storing it permanently underground. DOE provided the remaining $1.54 billion in funding for 785 other projects in amounts that were relatively small—over half were for less than $1 million.
Six demonstration projects researched CCS technologies using coal, while three used other fuels. The nine demonstration projects received funding ranging from $13 million to $284 million. As shown in the figure, three projects implementing CCS technologies were active as of the end of fiscal year 2017. Also, DOE withdrew its support for four projects, and two projects were withdrawn by the recipients—all before completion. These projects did not reach completion due to several factors, such as a lack of technical progress, or changes in the relative prices of coal and natural gas that made the projects economically unviable.
Of the 785 other projects, about 89 percent involved R&D of coal technologies, such as coal gasification—the conversion of carbon-containing material into synthesis gas. The other 11 percent of the 785 projects involved R&D of oil and gas technologies, such as the development of technologies to find, characterize, and recover methane from gas hydrates.

What GAO Recommends

GAO is not making any recommendations.