The U.S. Department of Energy (DOE), through its Hydrocarbons and Geothermal Energy Office, has released a new Notice of Funding Opportunity (NOFO) for R&D, field deployment, and validation projects focused on improving recovery from unconventional oil and natural gas reservoirs and advancing produced water treatment technologies.
Under DE-FOA-0003627, DOE expects to make up to $150 million in federal funding available to support projects that can accelerate industry uptake of new approaches for enhanced recovery and water management. Applications are now due by September 8, 2026 at 5:00 p.m. ET, following an amendment that moved the deadline up from October 5, 2026.
This opportunity is geared toward technologies that are ready for field deployment and validation in relevant operating environments. DOE is looking for projects that can demonstrate practical impact, generate real-world data, and help move promising technologies toward wider commercial adoption across the domestic oil and gas sector.
Four Key Topic Areas
DOE has organized the NOFO into four topic areas aimed at improving hydrocarbon recovery efficiency and transforming produced water management practices:
- Topic Area 1a: Field test site R&D of technologies for enhanced recovery from unconventional oil and gas reservoirs.
- Topic Area 1b: Advanced characterization of fracture propagation, proppant behavior, and well diagnostics.
- Topic Area 1c: Enhanced recovery of oil and gas from unconventional reservoirs using CO2.
- Topic Area 2: Advanced field-testing of multi-scale produced water treatment technologies and processes.
Across these areas, DOE is prioritizing technologies that can be validated through field testing, supported by strong technical and economic analysis, and advanced from a beginning field-based technology readiness level of 5 to at least 7 by project end. For Topic Area 2 in particular, DOE is looking for scalable treatment approaches that can support beneficial reuse of produced water and reduce reliance on deep well injection.
Who Should Consider Submitting
DOE is inviting applications from a range of eligible domestic entities, including:
- Institutions of higher education
- For profit companies
- Nonprofit organizations
- State and local government entities
- Indian Tribes
The NOFO is especially relevant for operators, technology developers, water treatment companies, service providers, universities, and cross-sector project teams with access to field sites and a clear plan for demonstrating performance at scale. DOE encourages multi-organization teams that combine industry participation with academic and technical expertise.
Funding Structure
DOE states that the NOFO includes up to $150 million in total federal funding across all topic areas, with anticipated awards ranging up to $12 million, $15 million, or $20 million in funds depending on the topic area.
Topic Area | Approx. Federal Funding Available | Approx. Max Individual Award Size | Approx. Number of Awards |
Topic Area 1a – Field Test Site R&D for Enhanced Recovery | Up to $30 million | Up to $15 million | 0–2 |
Topic Area 1b – Advanced Fracture, Proppant, and Well Diagnostics | Up to $36 million | Up to $12 million | 0–3 |
Topic Area 1c – Enhanced Recovery Using CO₂ | Up to $60 million | Up to $20 million | 0–3 |
Topic Area 2 – Produced Water Treatment Field Testing | Up to $24 million | Up to $12 million | 0–2 |
How the Opportunity Works
DOE may keep this NOFO open for up to 72 months, with review cycles occurring approximately every year as long as funding remains available. The intent is to give applicants time to form teams, secure field sites, complete due diligence, and assemble the industry partnerships needed for credible field validation projects.
For this current cycle, applicants must submit a full application through NETL eXCHANGE by September 8, 2026, and include a technical volume, statement of project objectives, project management plan, budget materials, letters of commitment, and other required forms and disclosures. Applications missing field test access or required commitment letters can be deemed non-responsive.
This is a significant opportunity for those in recovery technologies, treatment systems, or integrated water management solutions that can validate performance in real operating environments, proving to DOE a technical and credible path to commercial adoption.
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.
