WASHINGTON, D.C. — The Department of Energy is offering up to $65.5 million for cost-shared projects aimed at increasing domestic oil and natural gas output, reducing operating costs and strengthening infrastructure across the industry’s production and delivery systems.
The funding opportunity covers research, development and deployment projects designed to extract more value from existing assets, improve equipment reliability and convert stranded or underused resources into marketable products.
Applicants may seek funding for technologies that process natural gas and related production streams that are stranded, flared or difficult to use because of contaminants.
Projects could range from laboratory testing of catalysts, reactors and separation methods to field demonstrations of modular gas-conversion systems and sour-gas processing facilities in active production basins.
A second funding area targets equipment and materials used throughout oil, gas and chemical supply chains. Eligible work includes compressors, valves, pipelines, storage tanks, protective coatings and alloys intended to prevent product losses and improve infrastructure durability.
The department is also seeking projects that apply digital systems and advanced analytics to upstream and midstream operations.
Those projects may use full-scale test sites to evaluate continuous monitoring technology, artificial intelligence-supported digital twins and infrastructure optimization systems intended to increase the volume of marketable hydrocarbons while lowering costs.
“This funding opportunity will help American producers eliminate waste, improve efficiency, and deliver the affordable, reliable, and secure energy that powers our economy,” Energy Under Secretary Kyle Haustveit stated.
The solicitation follows a separate $150 million Energy Department funding opportunity focused on improving production from unconventional oil and gas reservoirs, hydraulic-fracture analysis and the management of water generated during extraction.
The latest funding supports an executive order directing federal agencies to expand domestic energy production.
Applications are due Sept. 22, 2026, at 5 p.m. ET.
Additional information is available at https://netl-exchange.energy.gov/#FoaId0f6ad161-a3de-4f52-8918-85131e41c59d.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.