The U.S. Department of Energy (DOE), through its through its Division of Transport and Storage, has released a new Notice of Funding Opportunity titled “Advancing Oil and Natural Gas Production and Delivery” (DE-FOA-0003634). DOE plans to invest approximately $65.5 million in federal funding, paired with at least $16.4 million in required cost share, for a total of about $81.9 million in project value across multiple topic areas.
Applications are due September 22, 2026, at 5:00 p.m. Eastern Time.
Program Objectives
This opportunity is focused on driving measurable improvements across the U.S. oil and natural gas supply chain, from extraction and processing through transport and end use. DOE aims to reduce wasted natural gas, increase utilization of challenging hydrocarbon streams such as sour gas and stranded natural gas liquids, and modernize infrastructure to improve efficiency and reliability. A central emphasis is accelerating digital transformation by deploying advanced data analytics, artificial intelligence, machine learning, digital twins, Internet of Things, and edge computing to optimize operations and reduce costs.
Topic Areas
DOE has structured the NOFO into three main topic areas, with four total funding tracks:
Topic Area 1: Enhanced Resource Utilization and Production Technologies (ERUPT)
Supports technologies that capture and convert gas that is currently flared, vented, or stranded, with separate tracks for laboratory validation of catalysts and unit operations and for field validation of full system prototypes.
Topic Area 2: Resilient Infrastructure Technologies Enhancement (RITE)
Targets technologies that improve the resilience and performance of engines, compressors, pipelines, and related infrastructure.
Topic Area 3: Hydrocarbon Infrastructure Test Sites (HITS)
Supports the development and use of full-scale test environments where integrated digital and physical solutions can be validated under realistic operating conditions.
Expected Impacts
DOE has set specific quantitative outcomes for this portfolio. On the resource side, the agency is seeking substantial reductions in flared and vented natural gas, improved economics for sour gas treatment, and increased profitability from historically challenging wells and natural gas liquids‑rich streams. On the infrastructure side, goals include higher natural gas delivery efficiency, increased pipeline deliverability, enhanced compressor and engine performance, and at least a 20 percent reduction in operational disruptions and maintenance costs through predictive analytics and automation. For digital transformation, DOE is targeting 10 to 20 percent increases in saleable hydrocarbon throughput and operational expenditure reductions of 15 percent or more through integrated digital optimization systems.
Eligibility and Cost Share
Eligible applicants include domestic institutions of higher education, for‑profit entities, nonprofit organizations, state and local government entities, and Indian Tribes that are organized and controlled in the United States and maintain a U.S. place of business. Foreign entities may participate only under limited waivers, and work is generally expected to be performed in the United States unless a specific waiver is approved. All projects must meet a minimum non‑federal cost share of 20 percent of total project costs; applications that do not meet this threshold will be deemed ineligible during initial review.
This is a significant opportunity for developers of gas utilization, infrastructure resilience, and digital optimization technologies that can demonstrate performance in real operating environments, providing DOE with a clear and credible path to commercial deployment.
EverGlade is a national advisory firm helping innovators navigate the federal funding ecosystem. We support companies across the funding lifecycle, from early-stage strategy through proposal development, negotiations, and post-award execution, ensuring you win the award and deliver the program.
For additional information on where your capabilities could plug into this opportunity, schedule a conversation with our team.
