Industrial decarbonization grants: DOE Industrial Demonstrations Program (IDP)
U.S. Department of Energy — Industrial Technologies Office
$30M to $500M per project
Researched for this program: 5 rejection traps · 9 required documentsWhat decides this award ↓
DOE's Industrial Demonstrations Program funded industrial decarbonization projects at $30M to $500M each, but it is closed, many awards were cancelled in 2025, and no new round is listed. A small firm’s realistic route was a place on a large industrial company’s project as its technology vendor.
DOE’s Industrial Demonstrations Program is where industrial decarbonization grants of $30M to $500M per project came from, and it is now closed. NOTE: The DOE Industrial Demonstrations Program (IDP) was originally administered by OCED. OCED was dissolved in DOE's November 2025 reorganization. Phase 1 awards totaling approximately $3.7B were subsequently cancelled by DOE in 2025. Phase 2 FOA is not expected. Existing Phase 1 award holders should check their award status directly with DOE. The Industrial Demonstrations Program (IDP) is DOE's $6B program to fund first-of-kind industrial decarbonization projects at commercial scale. Targets the five hardest-to-decarbonize sectors: iron/steel, cement/concrete, chemicals/refining, food/beverage, and aluminum. Projects must demonstrate commercially viable pathways to decarbonizing industrial operations — electrification, hydrogen use, carbon capture, efficiency improvements, or novel processes. Phase 1 awarded $6B to 33 projects; no Phase 2 round is listed.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $30,000,000 – $500,000,000
- Realistic amount
- Phase 1 funded 33 industrial projects, ranging from $30M to $500M each. Most awards were in the $50M–$200M range. SMBs as prime applicants were rare — most winners were large industrials (Nucor Steel, Heidelberg Materials, Olin Corporation).
- Deadline
- The only solicitation (DE-FOA-0002936, issued March 2023) closed August 11, 2023; no open call is listed and DOE has announced termination of many IDP awards
- Status
- closed
- States
- Nationwide
- Payment model
- reimbursement
Who qualifies
- U.S.-based entity — for-profit companies, universities, state/local governments, tribes, and non-profits are all eligible as consortium partners. Commercial industrial operators are the expected prime applicants.
- Projects must be in one of the five hard-to-decarbonize sectors: iron/steel, cement/concrete, chemical/refining, food/beverage, or aluminum. Other industrial sectors may qualify if they demonstrate significant decarbonization opportunity.
- Cost-sharing: 50% non-federal match required for all for-profit applicants. Match must be committed in writing by the time of application — documented letters, term sheets, or board approvals accepted.
- Projects must be at commercial scale or near-commercial scale (not early R&D). TRL 7–9 is the target — technology must be proven at pilot or demonstration scale.
- SAM.gov UEI registration required for all prime applicants.
- Concept paper submission required first — full application only invited for concept paper 'encouraged' responses.
Hard requirements
- Must be incorporated
- Minimum project size: $30,000,000
What it covers
Eligible expenses
- Engineering, procurement, and construction (EPC) costs for the demonstration facility or process modification
- Process equipment, heat exchangers, reactors, electrolyzers, or other technology hardware
- Hydrogen infrastructure, carbon capture equipment, or electric process heating systems
- Monitoring and verification systems to track emissions reductions
- Workforce training directly tied to operating the new decarbonized process
- Independent verification and validation costs
- Environmental review and permitting costs related to the demonstration project
- Project management and reporting costs (within allowable indirect rate caps)
Ineligible expenses
- General facility capital improvements unrelated to decarbonization technology
- Basic R&D (IDP funds demonstrations, not research — DOE SC and ARPA-E fund R&D)
- Lobbying and political activities
- Routine production operations and operating costs after demonstration phase
- International project components
- Administrative overhead above negotiated iCRA rates
How to apply
-
1
Check whether a new round has opened
No Phase 2 round is listed or expected. Check eere-exchange.energy.gov before investing in concept paper preparation; if a new round opens, eligibility, sectors and cost-share requirements may differ from Phase 1.
~120 hrs
-
2
Submit concept paper (required first step)
Prepare a 5–10 page concept paper (template in FOA) describing: the industrial process being decarbonized, the technology approach, expected emissions reduction (tons CO2e/year), team composition, site location, and preliminary cost-share sources. DOE responds within 4–6 weeks with encouraged/discouraged determination.
~120 hrs
-
3
Prepare full application (invited only)
Full application requires: full project narrative (60–100 pages), detailed budget and budget justification, Statement of Project Objectives, Letters of Commitment from all cost-share partners with specific dollar amounts, Community Benefits Plan, and preliminary engineering data. Submission through EERE eXCHANGE. Allow 6–8 weeks for preparation.
~120 hrs
-
4
Merit review and award negotiation
DOE merit review covers technical innovation, team qualifications, cost-reasonableness, community benefits, and commercial deployment potential. Review takes 4–8 months. Selected projects enter cooperative agreement negotiation with DOE project officers (additional 2–4 months).
~120 hrs
-
5
Execute milestones and report
Cooperative agreements have detailed milestone-based reporting. DOE funding flows via drawdown requests tied to milestone completion. Community Benefits Plan implementation (local hiring, labor standards, equity metrics) is tracked and scored throughout project duration.
~120 hrs
Industry & certifications
NAICS codes: 331, 325, 327, 311, 312
Phase 1 saw applications from 200+ entities; 33 were funded. Your best path as an SMB is as a named technology vendor on a large industrial company's application — provide the decarbonization technology (electrolyzer, heat pump, novel catalyst) while the prime provides the industrial site and cost-share.
Deadline & timing
IDP Phase 1 was the only solicitation (DE-FOA-0002936); 33 projects were selected. No Phase 2 round is listed and none is expected, so there is no deadline to plan around; see the Deadline row above. Existing award holders should check their award status with DOE.
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