The American-Made Commercial Direct Air Capture Pilot Prize (DAC Pilot Prize) is an initiative of the U.S. Department of Energy (DOE) designed to accelerate the development of innovative Direct Air Capture (DAC) technologies. The prize offers a total of $52.5 million in cash awards for teams that successfully design, build, and operate DAC pilot facilities capable of capturing at least 500 tonnes of atmospheric carbon dioxide per year. This effort aims to promote the maturation and commercialization of DAC technologies, which are considered essential for achieving global climate goals through the reduction of atmospheric CO2.

The purpose of the DAC Pilot Prize is to support "first-of-a-kind" DAC pilot projects that not only meet technical performance benchmarks but also advance equity in environmental, community, and workforce impacts. The DOE intends to stimulate technological innovation in the DAC space and create pathways for these technologies to be deployed in the commercial sector. Prize awards will be given as teams achieve key developmental milestones, starting with early design stages (pre-Front End Engineering Design, or pre-FEED) and progressing through construction and operation phases. The prize is also part of a broader set of competitions within the American-Made DAC Prize program, aimed at advancing carbon dioxide removal (CDR) technologies and fostering the growth of DAC-focused markets.

The funding is structured in a phased approach, with teams advancing through four key stages. In Phase 1, participants must submit a concept paper that includes proposed technology and a pre-FEED study for their DAC pilot system. In Phase 2, teams are required to deliver a full FEED study, secure a host site, and provide detailed assessments such as community benefit plans and compliance with environmental and safety regulations. Phase 3 focuses on obtaining the necessary permits and approvals, while Phase 4 involves the construction and operation of the DAC pilot system, which must run for at least 2,000 hours to demonstrate viability.

Eligibility for this prize is limited to private entities, including for-profit and non-profit organizations, as well as non-federal government entities, academic institutions, and Tribal organizations. Entities that have already deployed projects through the DOE’s Regional DAC Hubs program are not eligible to apply. This prize encourages participation from a broad range of stakeholders to foster diversity in the types of solutions and teams involved in DAC technology development.

Applicants will be evaluated on their ability to meet the technical requirements set forth in each phase, as well as their plans for environmental stewardship and community engagement. Interested teams must refer to the Official Rules document for detailed information on submission requirements, evaluation criteria, and compliance. The competition is divided into distinct phases, and only those teams that successfully complete earlier phases are eligible to proceed to the subsequent rounds.

For more information, potential applicants can follow updates on the challenge through the HeroX platform, subscribe to the American-Made Newsletter, or contact the prize administrators directly via email. Deadlines, timelines, and additional updates will be provided through these channels as the competition progresses.