DOE Launches $100M Retrofit Program Targeting Coal Fleet Reliability – POWER Magazine

Report on Department of Energy Funding for Coal Fleet Modernization and Sustainable Development Goals

The U.S. Department of Energy (DOE) has initiated a $100 million Notice of Funding Opportunity (NOFO) to modernize the nation’s existing coal-fired power plants. This initiative is designed to enhance grid reliability and resource adequacy while concurrently advancing several United Nations Sustainable Development Goals (SDGs), including SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Strategic Funding Areas and SDG Alignment

The NOFO, administered by the National Energy Technology Laboratory (NETL), targets three technical areas for demonstration-scale projects. Each area is strategically aligned with specific SDGs to promote a more sustainable and resilient energy infrastructure.

TA1: Advanced Wastewater Management Systems

• Funding: Up to $50 million.
• Objective: To implement transformational wastewater treatment technologies that recover water and value-added byproducts from coal plant waste streams.
• SDG Alignment:
  • SDG 6 (Clean Water and Sanitation): The initiative directly supports Target 6.3 by improving water quality through reduced pollution and Target 6.4 by substantially increasing water-use efficiency.
  • SDG 12 (Responsible Consumption and Production): By recovering resources from waste streams, this area promotes circular economy principles and contributes to the sustainable management of natural resources.

TA2: Dual-Firing Retrofits for Enhanced Flexibility

• Funding: Up to $25 million.
• Objective: To engineer and implement retrofit systems enabling power units to switch automatically between coal and natural gas, enhancing operational flexibility and fuel security.
• SDG Alignment:
  • SDG 7 (Affordable and Clean Energy): This technical area enhances the reliability and resilience of the energy supply, a cornerstone of SDG 7. It allows plants to adapt to fuel price volatility, ensuring more affordable energy.
  • SDG 9 (Industry, Innovation, and Infrastructure): The project focuses on upgrading existing industrial infrastructure with innovative technology to make it more resilient and adaptable.

TA3: Natural Gas Cofiring for Emissions Reduction

• Funding: Up to $25 million.
• Objective: To develop and test systems for the simultaneous combustion of coal and natural gas (20-50% heat input) to achieve proportional emissions reductions.
• SDG Alignment:
  • SDG 13 (Climate Action): Cofiring directly contributes to climate mitigation efforts by reducing emissions of CO₂, SO₂, NOₓ, and mercury from existing assets, serving as a transitional strategy to lower the carbon intensity of the power sector.
  • SDG 7 (Affordable and Clean Energy): By reducing emissions and improving operational efficiency, cofiring supports the transition towards cleaner energy systems while maintaining the dispatchable capacity needed for grid stability.

Implementation Framework and Innovation Pathway

The DOE has structured the program to bridge the gap between proven technology and commercial deployment, directly supporting SDG 9’s call to foster innovation.

Project Phases

1. Phase I (12 months): Preliminary engineering, site selection, and pre-FEED cost estimation.
2. Phase II (12 months): Final engineering, detailed design (FEED), and securing an EPC contractor.
3. Phase III (up to 36 months): Full-scale implementation and testing at a host coal facility.

Technological Advancement

Projects must begin at Technology Readiness Level (TRL) 7 and are expected to achieve TRL 8, signifying the system is fully qualified for commercial operation. This structured progression de-risks investment in sustainable technologies for plant owners and utilities.

Context: National Energy Security and Resource Adequacy

This funding initiative is part of a broader federal strategy to address a declared national energy emergency and deteriorating resource adequacy. The retirement of firm thermal generation has outpaced the deployment of reliable replacement capacity, threatening grid stability and the achievement of SDG 7 and SDG 11 (Sustainable Cities and Communities), which depend on reliable energy.

• A July 2025 DOE report identified the need to preserve existing generation to ensure essential reliability services.
• Executive Order 14156 directed federal agencies to restore generation capacity to ensure reliability and affordability.
• The DOE has also issued numerous emergency orders under Section 202(c) of the Federal Power Act to keep specific fossil and nuclear units online, underscoring the urgency of maintaining a stable power supply.

The NOFO provides a proactive, technology-focused approach to this challenge, aiming to make the existing fleet more environmentally responsible and economically viable, thereby ensuring a stable energy foundation for sustainable economic growth and community well-being.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses a Department of Energy (DOE) initiative to modernize the U.S. coal fleet, which connects to several Sustainable Development Goals (SDGs) focused on energy, water, infrastructure, and environmental management.

• SDG 6: Clean Water and Sanitation: The article directly addresses this goal through the funding allocated for “Advanced Wastewater Management Systems.” This initiative aims to treat wastewater from coal plants, recover water, and manage the discharge of pollutants, thereby improving water quality and promoting efficient water use.
• SDG 7: Affordable and Clean Energy: The core theme of the article is ensuring energy reliability, affordability, and security. The DOE’s program aims to prevent blackouts and stabilize the power grid by retrofitting existing power plants. While focused on coal, it includes measures to reduce emissions and increase efficiency, contributing to a more reliable energy supply.
• SDG 9: Industry, Innovation, and Infrastructure: The initiative is centered on upgrading and retrofitting industrial infrastructure—specifically, coal-fired power plants. It promotes innovation by funding the development and implementation of new technologies for wastewater treatment, dual-fuel switching, and cofiring systems to make this infrastructure more efficient and environmentally sound.
• SDG 12: Responsible Consumption and Production: The program encourages more sustainable industrial processes. The focus on recovering water and “value-added byproducts” from wastewater streams aligns with the goal of achieving sustainable management and efficient use of natural resources and reducing waste generation.
• SDG 13: Climate Action: Although the program supports fossil fuels, it incorporates measures to mitigate environmental impact. The development of coal-natural gas cofiring systems is explicitly intended to achieve “proportional reductions” in greenhouse gases like carbon dioxide (CO₂), alongside other pollutants, integrating climate considerations into energy infrastructure policy.

2. What specific targets under those SDGs can be identified based on the article’s content?

Several specific SDG targets can be linked to the actions and goals described in the article:

1. Target 6.3: By 2030, improve water quality by reducing pollution… and minimizing release of hazardous chemicals and materials.
   • The funding for “Advanced Wastewater Management Systems” that treat coal combustion residual (CCR)–related waste and “manage the discharge of water” directly supports this target by aiming to reduce water pollution from industrial sources.
2. Target 6.4: By 2030, substantially increase water-use efficiency across all sectors.
   • The initiative seeks technologies capable of “recovering water” from coal-plant wastewater streams, which contributes directly to increasing water-use efficiency within the energy sector.
3. Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.
   • The entire program is a response to a “deterioration in resource adequacy” and a declared “national energy emergency.” Its primary goal is to “preserve and restore” generation capacity to ensure the reliability and affordability of the power supply and prevent blackouts.
4. Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.
   • The DOE’s $100 million Notice of Funding Opportunity (NOFO) is a direct investment in research, development, and demonstration-scale projects to advance technologies that make existing energy infrastructure cleaner and more flexible.
5. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
   • The article is entirely focused on retrofitting an existing industry (coal power plants) with cleaner and more efficient technologies, such as advanced wastewater treatment and dual-fuel systems, to improve their environmental performance and extend their operational life.
6. Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • The program supports the coproduction of “marketable byproducts” from waste streams and fuel-flexibility retrofits, both of which promote the more efficient use of natural resources (water, fuel).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several explicit and implicit indicators that can be used to track progress:

• Financial Investment: The allocation of “$100 million in federal backing” for the projects is a clear indicator of investment in upgrading energy infrastructure (relevant to Target 7.a).
• Emission Reduction Levels: The article specifies a target for cofiring systems to achieve “20–50% emissions reductions” in pollutants including SO₂, NOₓ, and CO₂. This is a direct quantitative indicator for environmental performance (relevant to Target 9.4 and 13.2).
• Technological Advancement: Progress is measured by moving projects from “Technology Readiness Level (TRL) 7” to “TRL 8,” where a system is fully qualified for commercial use. This indicates successful innovation and implementation (relevant to Target 7.a and 9.4).
• Water Management Efficiency: Implicit indicators for water management include “meaningful water-recovery efficiencies” and “reduced discharge volumes,” which can be quantified to measure progress towards Targets 6.3 and 6.4.
• Cost-Efficiency of Retrofits: The goal to keep retrofit costs for cofiring systems “near $50/kW” serves as an economic indicator for the viability and scalability of the technology (relevant to Target 9.4).
• Energy System Reliability: An implied indicator is the stabilization of the bulk power system and a reduction in the “risk of forced outages and blackouts.” This measures the success of ensuring a reliable energy supply (relevant to Target 7.1).
• Resource Recovery: The “coproduction of marketable byproducts” from wastewater is an indicator of progress towards responsible production and waste reduction (relevant to Target 12.2).

4. Table of SDGs, Targets, and Indicators

Source: powermag.com