The U.S. Department of Energy issued a Funding Opportunity Announcement for up to $40 million in research, development and demonstration of combined heat and power systems.

The U.S. Department of Energy issued a Funding Opportunity Announcement for up to $40 million in research, development and demonstration of combined heat and power (CHP) systems, based on annual appropriations. The DOE says advancing CHP as an efficient energy solution supports the current administration's strategy of revitalizing the American economy, enhancing the nation's energy security and combating climate change.

Combined heat and power technologies - those that co-produce heat and electricity - can be deployed in industrial, commercial and residential settings to improve efficiency, control costs and limit greenhouse gas emissions. This makes U.S. industry more productive and more competitive, according to the DOE.

The department also reports that CHP and District Energy Systems can achieve efficiencies of 80 percent or better compared to roughly 45 percent for conventional heat and power production. Waste recovery systems have the potential to save 17 gigawatts of energy nationwide annually - more than all of the generating capacity for the state of Wisconsin (16.4 GW) and half of the generating capacity of Ohio (33.8 GW), one of the largest power-generating states.

“This FOA will accelerate the development and deployment of CHP technologies and systems to work towards a goal of increasing U.S. electricity generation capacity from CHP,” the department said. “DOE will provide up to 50 percent of these cost-shared awards.”

Specifically, this solicitation seeks applications for funding of research, development and demonstration of stationary CHP systems at three power levels:
  • The first level covers "large" systems with greater than 20 megawatts (MW) of electricity output. This area has an estimated total budget of $30 million - $15 million from the DOE.

  • Area 2 has an estimated total budget of $30 million - $15 million in federal funding and covers "medium" size systems between 1 MW and 20 MW.

  • Area 3 has an estimated budget of $20 million - $10 million in DOE cost-share - and covers "small" size systems smaller than 1 MW.
All levels will seek applications that provide plans to perform research and development focused on increasing the efficiency and reducing GHG emissions of stationary CHP systems. These systems will be able to replace or reduce natural gas usage, as well as minimize the energy and cost penalties of meeting emission regulations.

For more information, visit Grants.gov.