US president Joe Biden has announced $6bn in funding to boost decarbonization projects in energy-intensive industries.
The Industrial Demonstration Program is also designed to provide American manufacturers with a competitive advantage in the emerging clean energy economy, the US Department of Energy said.
Funding for the program will come from President Biden’s Infrastructure Law and Inflation Reduction Act.
It will focus on the highest emitting industries, including iron and steel, aluminum, cement and concrete, where decarbonization technologies will have the greatest impact.
Widespread demonstration and deployment of decarbonization projects within these industries is key to achieving the president’s goal of a net-zero economy by 2050.
Jennifer M. Granholm, US secretary of energy, said: “Today’s announcement is yet another exciting step in the race to fully decarbonize our heavy industries.”
It will help drastically reduce harmful pollution while ensuring America’s manufacturing sector is strong and competitive, she added.
Granholm called the investment in clean energy “transformational”, and said it would support US industries as they create new economic opportunities across the country.
Industrial sector emissions
The industrial sector contributes nearly a third of the nation’s carbon emissions. This announcement represents the latest step in the Biden-Harris Administration’s approach to reducing its emissions.
The boost for decarbonization projects at scale in this decade replaces ideas solutions were decades away.
The Office of Clean Energy Demonstrations, in collaboration with the Office of Manufacturing and Energy Supply Chains and the Industrial Efficiency and Decarbonization Office, will manages this program and will provide up to 50% of the cost of each project.
For this funding announcement, DOE seeks first-of-a-kind or early-stage commercial-scale projects.
It expects to award projects from the highest emitting industries involving cross-cutting technologies that have the greatest potential, directly or indirectly, to achieve significant decarbonization domestically and globally.
In total, according to the DOE, this funding plan represents more than a $12bn opportunity to dramatically reduce industrial emissions.
This includes $430m from the Bipartisan Infrastructure Law and $5.46bn from the Inflation Reduction Act, combined with more than $6bn in projected private sector cost share.
To maximize the transformative potential of these funds, DOE will prioritize a portfolio of projects that accelerate industry towards deep decarbonization, and spur follow-on investments for widespread adoption of the demonstrated technologies.
Also those projects that enable new markets for cleaner products, and benefit local communities.
Interested applicants will be required to submit a Community Benefits Plan to ensure they are meaningfully engaging with the surrounding communities, creating quality jobs and investing in the American workforce.
Also that they are advancing diversity, equity, inclusion, and accessibility; and supporting environmental justice.
Concept papers are due by April 21, 2023, and full applications are due by August 4, 2023.