DOE DE-FOA-0003634: Advancing Oil and Natural Gas Production and Delivery ($81.9M NOFO)
Quick Answer
The U.S. Department of Energy's Hydrocarbons and Geothermal Energy Office (HGEO) issued Notice of Funding Opportunity DE-FOA-0003634, "Advancing Oil and Natural Gas Production and Delivery," on July 22, 2026. The opportunity makes up to $81,875,000 available ($65,500,000 in federal funding plus a required 20% cost share) across four topic areas addressing natural gas flaring reduction, sour gas treatment, infrastructure resilience, and AI-enabled digital transformation of upstream and midstream oil and gas operations. Applications are due September 22, 2026, by 5:00 p.m. ET, submitted through DOE's NETL eXCHANGE portal. The NOFO uses cooperative agreements or Other Transaction Agreements and may remain open for up to 72 months with annual review cycles.
What Is DE-FOA-0003634?
DE-FOA-0003634 is a Financial Assistance Notice of Funding Opportunity issued by DOE's Hydrocarbons and Geothermal Energy Office, Division of Transport and Storage. It funds research, development, and field validation of technologies that improve the efficiency, reliability, and resilience of the U.S. oil and natural gas supply chain, spanning extraction through processing, transport, and delivery.
The program specifically targets three long-standing problems in the sector: natural gas that is flared or vented instead of captured, aging infrastructure prone to corrosion and unplanned downtime, and slow adoption of digital technologies such as AI, machine learning, digital twins, IoT, and edge computing in upstream and midstream operations.
Who Is Eligible to Apply for DE-FOA-0003634?
Eligible applicants are domestic entities, including:
Institutions of higher education
For-profit organizations
Nonprofit organizations
State and local government entities
Indian Tribes, as defined under 25 U.S.C. § 5304
To qualify, an entity must be organized or incorporated under U.S. or state law, be majority domestically owned and controlled, and maintain a physical place of business in the United States.
Important eligibility limitations:
DOE and non-DOE Federally Funded Research and Development Centers (FFRDCs) may participate only as subrecipients, not as the prime recipient, and FFRDC effort cannot exceed 20% of total project cost.
The National Energy Technology Laboratory (NETL) is not eligible as a recipient or subrecipient. Including NETL in either role makes an application non-responsive.
Foreign entities are generally ineligible but may apply with an approved written waiver.
All project work must be performed in the United States unless a waiver is granted.
Entities debarred or suspended from federal programs, those on the OFAC Specially Designated Nationals list, and 501(c)(4) nonprofits that lobbied after 1995 are ineligible.
Entities of Concern are prohibited from participating.
Applicants may submit more than one application, provided each describes a scientifically distinct project.
How Much Funding Is Available, by Topic Area?
DOE structured DE-FOA-0003634 around four topic areas, each with its own funding pool, award size, and project period.
Topic Area 1a: Laboratory Validation of Catalysts and Unit Operations
Federal funding available: $7,500,000
Anticipated number of awards: 5
Typical award size: $1,500,000 federal (plus 20% cost share)
Project period: approximately 24 months
Starting TRL: 3 | Ending TRL: 5
Topic Area 1b: Field Validation of Full System Prototypes
Federal funding available: $18,000,000
Anticipated number of awards: 3
Typical award size: $6,000,000 federal
Project period: approximately 48 months
Starting TRL: 5 | Ending TRL: 7
Requires a letter of intent from an industry partner providing field site access, and a project team member committed to commercialization
Topic Area 2: Resilient Infrastructure Technologies Enhancement (RITE)
Federal funding available: $12,000,000
Anticipated number of awards: 4
Typical award size: $3,000,000 federal
Project period: approximately 48 months
Starting TRL: 5 | Ending TRL: 7
Also requires an industry field-site letter of intent and a commercialization-focused team member
Topic Area 3: Hydrocarbon Infrastructure Test Sites (HITS)
Federal funding available: $28,000,000
Anticipated number of awards: 4
Typical award size: $7,000,000 federal
Project period: approximately 60 months
Requires a defined physical field test site and an industry letter of intent providing site access
All topic areas require a minimum 20% cost share from nonfederal sources.
What Technologies Is DOE Looking to Fund?
Topic Area 1: Enhanced Resource Utilization and Production Technologies (ERUPT)
This topic area targets the roughly $15 billion in natural gas value lost to flaring and venting over the past decade, along with stranded sour gas and stranded natural gas liquids (NGLs). DOE is interested in:
AI- and quantum-scale simulation-driven catalyst and reactor design to convert associated gas and NGLs into valuable products
Modular, low-cost sour gas treatment systems capable of handling hydrogen sulfide (H2S) concentrations found across the Permian Basin, where more than 85% of gas contains some H2S and over 40% contains up to 10,000 ppm
Novel separation technologies and chemical pathways that improve the economics of NGL recovery
Sub-topic 1a covers laboratory-to-prototype-scale validation (TRL 3 to 5); sub-topic 1b covers field validation of full system prototypes (TRL 5 to 7) and requires an industry field-testing partner
Topic Area 2: Resilient Infrastructure Technologies Enhancement (RITE)
This topic area addresses the roughly $875 million in annual product losses and $1.37 billion in annual corrosion-related costs facing U.S. oil and gas infrastructure. Areas of interest include:
High-efficiency engines and compressors, including retrofit solutions, targeting a 10% increase in compressor performance and 25% increase in engine thermal efficiency
AI/ML-driven, digital-twin-enabled real-time optimization of legacy compressor and engine performance, targeting a 20% reduction in maintenance costs
Corrosion- and friction-resistant materials such as advanced coatings, composites, and alloys, targeting a 2 to 3% increase in pipeline deliverability
Requires field testing and an industry partner letter of intent
Topic Area 3: Hydrocarbon Infrastructure Test Sites (HITS)
Modeled on the successful Hydraulic Fracture Test Sites (HFTS) program, HITS funds the establishment of physical field test sites, at existing operator assets, university facilities, private consortium facilities, national labs, or public-private partnerships, where applicants validate:
Digital twin development for surface production, processing, and transportation assets
Predictive analytics for anomaly detection, remaining useful life prediction, and production forecasting
Edge computing and cybersecurity for the edge-to-cloud continuum
Autonomous and robotic inspection and maintenance systems
Target outcomes include a 10 to 20% increase in hydrocarbon throughput, a 20% reduction in pipeline and facility downtime, and a 15% reduction in operating costs. Applications must include both a defined physical test site and an industry letter of intent providing site access.
What Are DOE's Expected Performance Outcomes for This Program?
DOE has set specific, quantifiable targets applicants should address in their technical volumes:
Increase natural gas utilization to 80% by 2035
Reduce annual flaring losses by approximately $1.5 billion
Unlock production from an estimated 7,500 remaining wells in the eastern Delaware Basin currently limited by sour gas
Reduce sour gas treatment costs by more than 20%
Increase U.S. natural gas delivery system efficiency from 92% to 94% by 2030
Increase pipeline deliverability by 2 to 3%
Reduce operational disruptions and maintenance costs by at least 20%
Increase saleable hydrocarbon throughput by 10 to 20% and reduce OPEX by 15% or more through digital and physical optimization
What Applications Will DOE Not Consider?
DOE will not review applications that:
Fall outside the technical scope defined in the Topic Areas
Rely on approaches inconsistent with established scientific principles
Fail to articulate impact on U.S. energy security, economic competitiveness, domestic manufacturing, or job creation
Lack cost share commitment letters at submission
Propose technologies that are already commercially mature and widely deployed without demonstrating a genuine advancement
Propose chemical conversion to fuels such as gasoline or diesel (Topic Area 1)
Propose traditional, centralized amine treatment or cryogenic NGL recovery without a novel, modular, or cost-reducing angle (Topic Area 1)
Focus solely on sensor hardware without system-level integration (Topic Areas 2 and 3)
Fall outside the specified beginning or ending TRL range for the topic area
Omit a required industry letter of intent for field site access (Topic Areas 1b, 2, and 3)
What Does an Application Require?
Applications are submitted as a single phase through NETL eXCHANGE. Core components include:
Technical Volume (20-page limit): covers project objectives, Buy America/Buy America (BABA) applicability, discussion of each technical review criterion, relevance and expected outcomes, participant roles, facilities, and equipment
Statement of Project Objectives (SOPO): 8-page limit, Word format
Project Management Plan (PMP): 8-page limit
SF-424 and SF-424A: standard federal assistance and budget forms
Budget Justification Workbook and, if applicable, Subrecipient Budget Justification
Letters of Commitment/Intent: 1 page each, required for Topic Areas 1b, 2, and 3 to demonstrate field site access
Biographical Sketch and Current and Pending (Other) Support for every Covered Individual, produced via SciENcv, consistent with NSPM-33 disclosure requirements
Impacted Indian Tribes Documentation, where applicable
Locations of Work, Environmental Questionnaire, Summary for Public Release, and Summary Slide
Applicants are strongly encouraged to submit at least 48 hours before the deadline. DOE does not extend deadlines for server or connectivity issues.
How Will DOE Evaluate Applications?
Applications are scored against three weighted technical review criteria:
Scientific and Technical Merit, 45%: technical soundness, degree of advancement over baseline technologies, and alignment with topic area performance targets
Technical Approach and Understanding, 25%: quality of the Statement of Project Objectives, completeness of the Project Management Plan, and financial viability of the proposed budget
Technical and Management Capabilities, 30%: organizational structure, relevant corporate experience, key personnel qualifications, and adequacy of facilities and field sites
DOE may also weigh other selection factors, including technological diversity relative to its existing portfolio, industry involvement and commercialization potential, domestic manufacturing and job creation impact, and geographic distribution of upstream and midstream assets.
Why This Matters for Deep-Tech and Energy Innovators
DE-FOA-0003634 is one of the larger non-dilutive funding opportunities currently open for hydrocarbon-adjacent technology developers, and it explicitly rewards teams that pair strong science with a credible path to commercialization. Every topic area beyond 1a requires DOE's Technology Maturation Plan, Techno-Economic Analysis, and Adoption Readiness Level framework, meaning applicants need to show DOE not just that a technology works, but that it can be adopted and scaled by small and mid-size operators.
For companies working in catalysis, separations, sour gas treatment, corrosion-resistant materials, industrial AI/ML, digital twins, or autonomous field robotics, this NOFO represents a substantial, multi-year funding pathway, with the caveat that Topic Areas 1b, 2, and 3 all require a committed industry partner willing to provide field site access before an application can even be considered responsive.
Need Help With Your DE-FOA-0003634 Application?
BW&CO Consulting helps deep-tech, energy, and infrastructure companies secure non-dilutive federal funding through programs like this one. If your team is evaluating a Topic Area 1, 2, or 3 submission, including securing an industry field-site partner or building out your Technology Maturation Plan, contact BW&CO to discuss fit and strategy before the September 22, 2026 deadline.
Frequently Asked Questions
What is DE-FOA-0003634? DE-FOA-0003634 is a DOE Notice of Funding Opportunity titled "Advancing Oil and Natural Gas Production and Delivery," issued by the Hydrocarbons and Geothermal Energy Office to fund technologies that improve efficiency, reliability, and digital transformation across the U.S. oil and gas supply chain.
How much funding is available under DE-FOA-0003634? Up to $81,875,000 total, made up of $65,500,000 in federal funding and $16,375,000 in required cost share, spread across four topic areas.
When is the DE-FOA-0003634 application deadline? Applications are due September 22, 2026, at 5:00 p.m. ET, submitted through DOE's NETL eXCHANGE portal.
Who can apply for DE-FOA-0003634? Domestic institutions of higher education, for-profit and nonprofit organizations, state and local government entities, and Indian Tribes. FFRDCs may only participate as subrecipients, and NETL is barred from participating in any role.
Is cost share required? Yes. A minimum 20% cost share of total project costs is required from nonfederal sources, and applications without a cost share commitment letter at submission will not be reviewed.
Does this NOFO require an industry partner? Yes, for Topic Areas 1b, 2, and 3. Each requires a letter of intent from an industry partner providing access to a field test site, and a project team member committed to pursuing commercialization.
When will DOE announce selections and make awards? DOE anticipates notifying selected applicants by December 11, 2026, with an anticipated award date of March 1, 2027.
