Opportunity Information: Apply for DE FOA 0003627
The National Energy Technology Laboratory (NETL) has opened a discretionary funding opportunity (DE-FOA-0003627) titled "Improved Oil and Gas Recovery and Produced Water Management Technologies." It will be issued as cooperative agreements, meaning awardees should expect ongoing federal involvement during the project rather than a hands-off grant. The NOFO targets applied research and development projects that can move quickly toward field deployment and real-world validation, especially in unconventional oil and natural gas settings where recovery efficiency can average under 10 percent. The overall intent is to help the industry recover more hydrocarbons from existing unconventional reservoirs while also reducing operational and environmental risks tied to water management.
On the oil and gas recovery side, the opportunity is focused on novel technologies and processes that improve primary recovery and enhanced recovery in unconventional reservoirs. The thrust is not just incremental lab work, but approaches that can materially improve recovery efficiency and that have a clear path to adoption by operators. NETL is signaling a preference for projects that can be demonstrated and validated in the field and that address practical deployment barriers, with the broader goal of significantly improving resource recovery and accelerating uptake across the sector.
On the water side, the NOFO supports field testing and validation of flowback and produced water treatment technologies. A major driver here is to reduce reliance on deep well injection, which has been linked in some regions to induced seismicity concerns, and to limit risks associated with water handling and potential interactions with underground sources of drinking water. In practice, this means the agency is looking for treatment and management solutions that can be proven at relevant scales and that provide credible alternatives for reuse, recycling, or other management pathways that lessen the need for disposal.
Eligibility is broad and essentially unrestricted among domestic entity types. Applicants may include institutions of higher education, for-profit companies, nonprofit organizations, state and local government entities, and federally recognized Indian Tribes (as defined in 25 U.S.C. 5304). These entities can participate as recipients or subrecipients, which supports team-based submissions that combine technology developers, researchers, and operating partners.
A key update in Modification 000002 is the change to cost share requirements. The modification revises NOFO Part 1 to remove the cost share requirement specifically for demonstration-level projects, which can significantly lower the barrier for applicants proposing larger, field-forward demonstrations. This is an important shift because demonstration work is often the most expensive phase, and removing mandatory cost share at that level can make projects feasible for more teams and accelerate technology validation.
The same modification clarifies partner documentation requirements across the topic areas (including Topic Area 1a, 1b, 1c, and Topic Area 2). At the time of application, applicants must submit letter(s) of intent from industry partner(s). If a project is selected and moves into award negotiation, letter(s) of commitment will be required before an award is actually made. In other words, NETL wants to see credible industry engagement up front, but the binding commitment can come later once selection is likely. The modification also updates the application requirements table to explicitly reflect that letters of intent and/or commitment are required as part of the application package.
Another notable change is the removal of the requirement for certain topic areas (Topic Area 1b, 1c, and Topic Area 2) to include a technoeconomic assessment in the proposal. This reduces proposal complexity and up-front analytical burden, especially for earlier-stage or field-test concepts where costs and performance may be better characterized through piloting and validation rather than detailed pre-award economic modeling.
From a funding and administrative standpoint, the opportunity is listed under CFDA 81.089 (energy and natural resources). The posted award ceiling is $150,000,000, with an estimated 10 awards expected. The original closing date is September 8, 2026, and the opportunity was created on July 6, 2026. Because this is a cooperative agreement, applicants should plan for active technical collaboration with NETL during execution, including federal input on milestones, reporting, and field validation strategy.
In plain terms, this NOFO is aimed at teams that can (1) make unconventional reservoirs produce meaningfully more oil or gas using deployable new methods, and/or (2) prove produced water solutions that reduce or replace disposal by injection. Modification 000002 makes the program more demonstration-friendly by removing cost share at the demonstration level, tightens the expectations around documented industry participation through letters, and simplifies proposal requirements by eliminating mandatory technoeconomic assessments for several topic areas. For the most accurate details on what must be submitted and how each topic area is defined, applicants are expected to rely on the updated NOFO Part 1 referenced in the modification.Apply for DE FOA 0003627
- The National Energy Technology Laboratory in the energy, natural resources sector is offering a public funding opportunity titled "Improved Oil and Gas Recovery and Produced Water Management Technologies" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.089.
- This funding opportunity was created on 2026-07-06.
- Applicants must submit their applications by 2026-09-08. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $150,000,000.00 in funding.
- The number of recipients for this funding is limited to 10 candidate(s).
- Eligible applicants include: Unrestricted.
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Frequently Asked Questions (FAQs)
What is the name and number of this funding opportunity?
The opportunity is a discretionary funding opportunity from the National Energy Technology Laboratory (NETL) titled "Improved Oil and Gas Recovery and Produced Water Management Technologies," issued under DE-FOA-0003627.
What type of award will NETL make under this NOFO?
Awards are expected to be issued as cooperative agreements. That means awardees should plan for ongoing federal involvement during the project rather than a hands-off grant structure.
What is NETL trying to achieve with this NOFO?
The overall intent is to help industry recover more hydrocarbons from existing unconventional reservoirs while reducing operational and environmental risks tied to water management. The NOFO emphasizes applied research and development that can move quickly toward field deployment and real-world validation.
What kinds of oil and gas recovery projects are in scope?
The NOFO is focused on novel technologies and processes that improve primary recovery and enhanced recovery in unconventional reservoirs. NETL is signaling interest in approaches that can materially improve recovery efficiency (not just incremental lab work) and that have a clear path to adoption by operators.
Does NETL prefer lab studies or field validation?
Based on the stated goals, NETL is signaling a preference for projects that can be demonstrated and validated in the field and that address practical deployment barriers, with a broader goal of accelerating uptake across the sector.
Why is unconventional recovery a priority area in this NOFO?
The NOFO points to the fact that recovery efficiency in unconventional oil and natural gas settings can average under 10 percent. The program is aimed at improving that performance in real-world conditions.
What produced water and flowback water activities are supported?
The NOFO supports field testing and validation of flowback and produced water treatment technologies, with an emphasis on treatment and management solutions that can be proven at relevant scales.
What problem is NETL trying to solve on the water management side?
A major driver is reducing reliance on deep well injection, which has been linked in some regions to induced seismicity concerns. NETL is also focused on limiting risks associated with water handling and potential interactions with underground sources of drinking water.
What kinds of outcomes does NETL want for produced water management?
The NOFO describes interest in credible alternatives for reuse, recycling, or other management pathways that lessen the need for disposal via injection.
Who is eligible to apply?
Eligibility is described as broad and essentially unrestricted among domestic entity types. Eligible applicants may include institutions of higher education, for-profit companies, nonprofit organizations, state and local government entities, and federally recognized Indian Tribes (as defined in 25 U.S.C. 5304).
Can teams apply, including subrecipients?
Yes. The NOFO indicates that eligible entities can participate as recipients or subrecipients, which supports team-based submissions combining technology developers, researchers, and operating partners.
What is Modification 000002 and why does it matter?
Modification 000002 updates the NOFO requirements in several important ways, including changes to cost share rules for demonstration-level projects, clarification of partner documentation requirements, and removal of a technoeconomic assessment requirement for certain topic areas.
What changed about cost share requirements?
Modification 000002 revises NOFO Part 1 to remove the cost share requirement specifically for demonstration-level projects. This is positioned as a major change because demonstration work is often the most expensive phase, and removing mandatory cost share can lower barriers for field-forward demonstrations.
Does the NOFO still require industry partner letters?
Yes. The modification clarifies that applicants must submit letter(s) of intent from industry partner(s) at the time of application. If the project is selected and moves into award negotiation, letter(s) of commitment will be required before an award is made.
What is the difference between a letter of intent and a letter of commitment in this NOFO?
As described, a letter of intent is required at application to show credible industry engagement up front. A letter of commitment is required later (during award negotiation, before award) to provide a binding commitment once selection is likely.
Which topic areas are referenced for partner documentation requirements?
The modification specifically references Topic Area 1a, 1b, 1c, and Topic Area 2 in clarifying partner documentation requirements.
Is a technoeconomic assessment required in the proposal?
Modification 000002 removes the requirement for certain topic areas (Topic Area 1b, 1c, and Topic Area 2) to include a technoeconomic assessment in the proposal, reducing proposal complexity and up-front analytical burden for those areas.
What CFDA number is associated with this opportunity?
The opportunity is listed under CFDA 81.089 (energy and natural resources).
What is the maximum award amount (ceiling)?
The posted award ceiling is $150,000,000.
How many awards does NETL expect to make?
The NOFO estimates approximately 10 awards.
What are the key dates for this opportunity?
The opportunity was created on July 6, 2026. The original closing date is September 8, 2026.
How should applicants plan for NETL involvement during the project?
Because this is a cooperative agreement, applicants should plan for active technical collaboration with NETL during execution, including federal input on milestones, reporting, and field validation strategy.
What does NETL mean by wanting projects that can "move quickly toward field deployment"?
Based on the description, NETL is emphasizing applied R&D with a clear path to real-world validation, including field demonstration and attention to practical deployment barriers, rather than research that remains at a purely laboratory or conceptual level.
Where should applicants look to confirm the most accurate submission requirements?
Applicants are expected to rely on the updated NOFO Part 1 referenced in Modification 000002 for the most accurate details on what must be submitted and how each topic area is defined.
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