Total funding available

A total of $1,800,000 is available through this one-time funding opportunity. Individual grant awards are expected to range from $400,000 to $1,000,000, with approximately 2 to 4 grants anticipated; however, EGLE reserves the right to deploy funds as deemed appropriate to optimize the impact of final awards.

Funding requests should align with the scale, complexity, and replicability of the proposed project. The State of Michigan may choose not to allocate all available funds and reserves the right to revise or reopen the application process at a later date.

Eligible uses of funding

Challenge #4 funds studies, assessments, analyses, and related planning work that support industrial decarbonization at Michigan facilities. This funding is for planning work only. It does not cover equipment purchases, construction, or project implementation.

Projects must clearly demonstrate how the proposed work will evaluate opportunities to reduce greenhouse gas emissions, reduce energy use, lower energy cost exposure, improve operational efficiency, or inform future emissions-reduction investments.

Studies should prioritize interventions with meaningful emissions-reduction potential and quantify expected greenhouse gas impacts to the extent feasible, including deeper reductions over time where relevant.

Eligible applicants

Challenge #4 is open to:

• Michigan industrial companies
• Nonprofits, universities, research institutions, solution providers, and technical or consulting firms applying on behalf of a Michigan industrial facility

Required roles

• Lead applicant: The entity responsible for submitting the application, managing the award, and coordinating all project activities.
• Facility partner: At least one Michigan industrial facility that will actively participate in the study and provide appropriate access to data, staff, and decision-makers.
• Technical capability: The project team must collectively demonstrate the technical, analytical, and financial expertise needed to complete the proposed work. This capability may sit within the lead applicant, the facility, a partner organization, or a consulting/technical team.

Project requirements

• Projects must focus on at least one Michigan facility.
• Multi-facility projects are allowed if facilities are similar and the results will lead to clear, actionable insights.
• Applicants must show active partnership with the participating facility or facilities, including access to data, staff, and at least one decision-maker able to use study results.
• The facility must remain actively involved throughout the project.

Timeline

This is a competitive, one-time funding opportunity. The application process involves a two-step completion, beginning with a required Letter of Intent. Only those invited through this process may submit a full application.

Step 1: Letter of Intent submission (required) 

All applicants must first submit a Letter of Intent that outlines the proposed project at a high level. This step is intended to provide the State with a preliminary understanding of the concept and its alignment with the goals of the program, while minimizing applicant burden at the outset.

Letters of Intent should briefly identify:

• the facility or facilities proposed for study
• the general decarbonization pathways, technologies, or interventions the study may evaluate
• the main types of impacts the study is expected to assess, such as cost, emissions, operations, workforce, and/or community impacts
• the anticipated project team or partners, if known

Letters of Intent do not need to include:

• detailed engineering or technical analysis
• detailed budgets or cost estimates
• finalized study methodologies or scopes of work
• proprietary, confidential, or otherwise sensitive business information

Letters of Intent are intended to be high-level and exploratory. Applicants are not expected to provide detailed technical analysis at this stage.

Only Letters of Intent that receive a response of ‘Encouraged to Apply’ will be invited to submit a full application. The State will provide Letter of Intent feedback by Monday, June 1, 2026.

Step 2: Full application submission (by invitation only) 

Applicants who are invited to proceed will be eligible to submit a full application beginning Tuesday, June 2, 2026. Only those who receive an Encouraged to Apply designation based on their Letter of Intent will be considered for funding.

Applications must be submitted using the online application form no later than 11:59 PM EST on Tuesday, July 7, 2026.

Challenge #4 application

Project budget form

Project timeline form

Project scoring rubric

Submit all required documents together in a single email to Haley Neuenfeldt at NeuenfeldtH@Michigan.gov. Full submission instructions are included in the Challenge #4 application.