Opportunity Information: Apply for DE FOA 0003187
The Department of Energy (DOE), through its Office of Clean Energy Demonstrations (OCED), issued this grant opportunity to identify one or more independent, U.S.-based, not-for-profit entities that can help reduce the financial and market risk facing early clean hydrogen projects. The core idea is to strengthen the "demand side" of the clean hydrogen market by creating demand certainty or similar market-making tools, so that projects connected to DOE-selected Regional Clean Hydrogen Hubs can secure more predictable revenue over a medium-term period. DOE views this as a practical way to speed up commercialization by making it easier for hydrogen producers and related infrastructure developers to attract financing and move from demonstration to scaled deployment.
The opportunity is grounded in a common clean energy scaling problem: costs tend to fall as deployment grows, but early deployment is difficult because buyers are hesitant to commit while prices are still higher and supply chains and standards are still emerging. In clean hydrogen specifically, DOE highlights a mismatch between producers and buyers. Producers typically need longer-term, high-volume purchase commitments to justify investment and obtain project financing, while buyers often prefer shorter-term contracts with smaller volumes, especially for a product expected to become cheaper as the market matures. Demand-side support measures are meant to bridge that gap by creating more predictable commercial conditions for initial projects, which in turn can help accelerate learning-by-doing and cost reductions.
Rather than funding hydrogen plants directly through this solicitation, DOE is looking for an independent entity (or several entities) that can design-support and/or execute DOE-backed demand-side programs. DOE indicates flexibility in how this could be organized: it could be a single national nonprofit, multiple regional nonprofits, or separate organizations handling different phases of the work (for example, one group supporting design and another handling execution). Applicants may propose an already-existing organization or a new entity, as long as the entity would be formally established before the "Design Phase" work begins.
The selected entity or entities would be expected to bring real-world commercial capability, particularly experience relevant to commodity markets, project finance, and complex commercial contracting. Key functions described in the RFP include advising DOE on how to structure demand-side measures, running a DOE-designed and DOE-funded demand-support mechanism for Hydrogen Hub affiliated projects, and serving as a neutral implementing body that can receive and distribute DOE funds to selected projects. The entity may also be responsible for administering a DOE-designed competitive selection process to choose which projects or companies receive demand-side support, and for executing and managing the resulting financial and contractual agreements with recipients.
Another major expectation is active stakeholder engagement. DOE emphasizes that the implementing entity should be able to work across the clean hydrogen ecosystem, engaging developers, investors, government partners, universities, community groups, labor organizations, and other stakeholders (including non-traditional partners). This engagement is intended to inform program design and implementation and to help accelerate "commercial liftoff" for clean hydrogen, meaning the shift from subsidized pilots to durable, self-sustaining markets.
From an administrative standpoint, this is a discretionary DOE opportunity (Funding Opportunity Number DE FOA 0003187) in the energy category (CFDA 81.255). Eligible applicants are nonprofit organizations, including both 501(c)(3) nonprofits and nonprofits without 501(c)(3) status, as long as they are not institutions of higher education. The posting lists an award ceiling of $1,000,000,000, signaling the potential scale of demand-side programs DOE is considering, though the notice also lists expected awards as 0, which typically indicates DOE had not committed to a specific number of agreements at the time of posting or that awards depend on final program decisions.
All applications were required to be submitted through the OCED Funding Opportunity Exchange portal, and the full RFP and official details were provided through DOE at: https://oced-exchange.energy.gov/Default.aspx#FoaId3c3d8e7f-1839-45fc-8735-c0caf87408ef. The opportunity was originally posted on September 14, 2023, with an original closing date of October 26, 2023.Apply for DE FOA 0003187
- The Department of Energy, Headquarters in the energy sector is offering a public funding opportunity titled "Demand-side RFP for Independent Entity" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.255.
- This funding opportunity was created on Sep 14, 2023.
- Applicants must submit their applications by Oct 26, 2023. (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 $1,000,000,000.00 in funding.
- Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education.
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