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Today, the U.S. Department of Energy (DOE) disclosed the award of funding reaching up to $6 billion for 33 distinct projects. This financial support is designed to propel the development of technologies aimed at significantly curtailing emissions within industries that are notoriously challenging to decarbonize. The industries in focus span chemicals, steel, food, refining, cement, and more.
The DOE highlights this initiative as the most substantial investment by the U.S. in the realm of industrial decarbonization to date. These projects collectively aim to slash emissions by more than 14 million metric tons of CO2 annually, targeting some of the most prolific emitters among sectors that traditionally have been tough to decarbonize.
This push towards industrial decarbonization aligns with the climate goals of the Biden administration, noting the industrial sector's responsibility for a significant portion, nearly one-third, of the nation’s emissions. This initiative is supported by financial commitments from the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL), allocating close to $500 billion towards climate-centric investments that encompass carbon-neutral energy production, manufacturing, and clean technology innovations.
The funding awards announced are part of the DOE's Industrial Demonstrations Program initiated by the Biden Administration. This program covers up to half the expenses for pioneering or initial-stage decarbonization projects with the aim of scaling them within this decade. The selection criteria prioritize projects that promise to make substantial progress in decarbonization, encourage further investment for the broad adoption of these technologies, create new markets for cleaner products, and benefit the communities involved. The funding pool includes nearly $500 million from the Bipartisan Infrastructure Law and more than $5.4 billion from the Inflation Reduction Act.
These funded projects are anticipated to achieve an average emissions reduction of 77%. The federal investment is expected to be matched by the project beneficiaries, mobilizing over $20 billion towards the demonstration of commercial-scale decarbonization solutions. These solutions span energy efficiency, electrification, and the use of alternative fuels and materials.
The projects span a variety of sectors, with awards aimed at negotiations including seven for chemicals and refining, six for cement and concrete, six for iron and steel, five for aluminum and metals, three for food and beverage, three for glass, two focused on process heat, and one targeting the pulp and paper sector.
Significant funding allocations include up to $500 million for projects such as the Green Aluminum Smelter by Century Aluminum Company, the Lebec Net Zero Cement Plant by National Cement Company of California, the Mitchell Cement Plant Decarbonization by Heidelberg Materials US, a Hydrogen-Ready Direct Reduced Iron Plant and Electric Melting Furnace by Cleveland-Cliffs Steel, and a Hydrogen-Fueled Zero Emissions Steel Making by SSAB.
U.S. Secretary of Energy, Jennifer M. Granholm, expressed that driving forward the next wave of decarbonization technologies in crucial sectors such as steel, paper, concrete, and glass positions America as a leading competitive nation globally. She credited President Biden's industrial strategy for facilitating the largest investment in industrial decarbonization ever made in the U.S.