DOE Industrial Demonstrations Program (IDP) — Industrial Decarbonization
U.S. Department of Energy — Industrial Technologies Office (ITO, formerly IEDO/OCED)
$30M to $500M per project
Industrial decarbonization at commercial scale
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; Phase 2 applications anticipated.
- 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 a…
- Deadline
- Program effectively cancelled — Phase 1 awards ($3.7B) terminated following OCED dissolution Nov 2025. No Phase 2 FOA expected.
- Status
- discontinued
- 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
Monitor for Phase 2 FOA release
Subscribe to DOE EERE updates at eere.energy.gov and monitor eere-exchange.energy.gov. When the Phase 2 FOA is released, download and read the full document before investing in concept paper preparation. 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 FOA closed in late 2022; 33 projects were selected in 2023–2024. Phase 2 FOA has not been publicly announced as of 2026 but DOE has indicated additional funding rounds are planned using remaining appropriated funds. Subscribe to the DOE EERE mailing list and monitor eere-exchange.energy.gov for upcoming FOA announcements.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.