The U.S. Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED) today released a Notice of Intent to provide up to $6.3 billion to support the advancement of transformational technologies necessary to decarbonize the industrial sector and provide the U.S. with a competitive edge in the race to lead the world in low- and net-zero carbon manufacturing. Funded by President Biden’s Bipartisan Infrastructure Law and Inflation Reduction Act, the Industrial Demonstrations Program will fund projects that focus on the highest emitting industries where decarbonization technologies can have the greatest impact: iron and steel, cement and concrete, chemicals and refining, food and beverage, paper and forest products, aluminum, other energy-intensive manufacturing industries and cross-cutting technologies. Widespread demonstration and deployment of projects within these industries will support President Biden’s initiative to rebuild U.S. leadership in manufacturing as countries, companies, and consumers around the world shift to low- to no-carbon commodities to meet their own decarbonization goals.
“Domestic manufacturing is the backbone of the American economy,” said Office of Clean Energy Demonstrations Director David Crane. “Accelerating the inevitable decarbonization of the nation’s manufacturing sector will give ‘first mover’ advantage to American industry, thereby bolstering the technological and economic competitiveness of U.S. industry, spurring innovation and economic growth, creating good-paying jobs for American workers, and enabling a clean, more equitable future for all Americans.”
Industrial emissions currently account for approximately one third of the nation’s carbon footprint1. The industrial sector is considered one of the most difficult to decarbonize due to the diversity of energy inputs, processes, and operations. The sector’s emissions result not just from fuel for heat and power, but also from feedstocks and processes that have traditionally been carbon intensive.
OCED will provide up to 50 percent of the cost of each project to catalyze impactful, scalable, and replicable demonstrations that maximize emissions reductions, prioritize energy and environmental justice, and create good-paying jobs. This funding opportunity was developed in collaboration with the Office of Manufacturing and Energy Supply Chains (MESC).
To ensure these projects provide benefits to their host communities and neighbors, the funding announcement will require a community benefits plan from each applicant related to engaging communities and labor; investing in America’s workforce; advancing diversity, equity, inclusion, and accessibility; and implementing the Justice40 Initiative.
The anticipated funding announcement will include up to $5.8 billion from the Inflation Reduction Act and $500 million from the Bipartisan Infrastructure Law. DOE plans to release the funding opportunity announcement in March 2023.
To learn more about DOE’s intent for the anticipated funding opportunity, please click here. To register for an informational webinar on January 24, 2023, please click here. A transcript and recording will be made available for those unable to attend. For more about OCED and its programs, including the Industrial Demonstrations Program please click here.