The current round of awards focused on decarbonization technology providers to enable deployment of their technology in Colorado industrial facilities
Denver - Thursday, Feb. 12, 2026 - The Colorado Energy Office (CEO) announced $5.2 million in Clean Air Program (CAP) grant awards for industrial emissions reduction technology providers Tuesday, supporting the deployment of innovative technologies such as electric heat pump boilers, carbon management, methane detection, and strategic electrification at industrial facilities in the state. Colorado has a goal to reduce emissions from the industrial sector 20% by 2030 compared to a 2015 baseline. To support these emissions reductions and other air quality improvements, CEO has awarded a combined total of more than $29.3 million for industrial decarbonization projects, which includes $20.6 million in CAP funding and $8.7 million in funding from the Colorado Industrial Tax Credit Offering (CITCO).
“Colorado is leading the way by investing in innovative solutions to reduce air pollution and support healthy communities. Clean energy technologies are helping Colorado reach our goals and protecting Coloradans for generations to come,” said Governor Polis
The most recent CAP funding round took a different approach to funding industrial emissions reduction projects. While previous rounds focused on specific industrial facilities, the current round offered funding to decarbonization technology providers and “as-a-service” providers to implement their technologies at eligible facilities in the state.
“With industrial facilities as a leading source of emissions in Colorado, we need innovative strategies to advance decarbonization technologies in this crucial sector,” said CEO Executive Director Will Toor. “By directly supporting technology providers, we are giving businesses an important opportunity to bring their technologies to the market in Colorado, while reducing financial risk for individual industrial facilities and improving air quality in local communities.”
To receive an award, applicants were required to have an engagement plan to secure an eligible facility to implement their technology. Colorado’s investment in these projects is matched by more than $1.6 million in private investment across the four awardees. CEO will provide grants to the following projects for the current funding round:
AtmosZero ($1,811,200) plans to replace natural gas boilers with high-efficiency electric heat pump boilers.
CREW Carbon ($2,352,689.10) will implement a project to store carbon from a wastewater treatment facility via carbon mineralization.
Trellisense ($148,000) will partner with natural gas operators in the San Juan basin to implement methane detection and reduction technology. Trellisense also received a $250,000 Advanced Industries Early Stage Capital and Retention grant last year from the Office of Economic Development and International Trade, which enabled them to bring their technology to the market.
Sun Metalon ($898,500) plans to implement technology to recycle metal on-site at an aluminum or steel facility using electricity instead of natural gas.
CEO prioritized funding for projects based on their expected impacts on air quality and emissions reductions, demonstrated need for funding and use of additional funding resources, and project innovativeness and readiness. Combined, the awarded projects from this funding round are expected to avoid annual emissions equivalent to removing nearly 4,000 cars from the road, while also reducing co-pollutants such as sulfur and nitrous oxides and particulate matter.
Funding for CAP comes from SB22-193 Air Quality Improvement Investments, sponsored by former Senator Stephen Fenberg, Senator Julie Gonzales, and Representatives Alex Valdez and Meg Froelich and signed by Governor Polis in May 2022. To date, CEO has made 14 CAP grant awards for a range of project types and facilities, including oil and gas transport and storage, wastewater treatment, and coal mines. See a full list of CAP awardees in the CAP Summary of Awards.
CEO plans to open an additional round of CAP funding for decarbonization technology providers in early 2026. More information will be available on the CAP webpage. CEO also continues to offer funding for industrial emissions reduction projects through CITCO, which will open applications again this Spring.
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