Industrial Demonstrations Program Selection Snapshot: $20+ billion total funding, over 14 million metric tons of avoided emissions annually, 85% of projects would reduce criteria air pollutants, tens of thousands total jobs and 19 projects committed to union labor

Industrial decarbonization refers to the phasing out of greenhouse gas (GHG) emissions from the industrial sector. The U.S. industrial sector is considered a “difficult-to-decarbonize” sector of the energy economy, in part because of the diversity of energy inputs and wide array of industrial processes and operations.  

Projects in the Industrial Demonstrations Program (IDP) aim to prove out novel technologies using one or more of the following cross-cutting industrial decarbonization approaches: energy efficiency, industrial electrification, low-carbon fuels, feedstocks, energy sources including clean hydrogen, material efficiency or substitution, carbon capture utilization and storage, and others. 

Large-scale deployment of industrial decarbonization technologies is critical to address the climate crisis and achieve net-zero carbon emissions by 2050. Currently, the industrial sector, composed of manufacturing and non-manufacturing subsectors, is estimated to account for about 33% of the nation’s primary energy use and around 30% of energy-related carbon dioxide (CO2) emissions.  

DOE has been appropriated certain sources of funding to further industrial decarbonization efforts. The Industrial Demonstrations Program received a combined $6.3 billion in federal funds from the Bipartisan Infrastructure Law and the Inflation Reduction Act to support the advancement of transformational technologies necessary to decarbonize the U.S. industrial sector. Demonstrating the technical and commercial viability of industrial decarbonization approaches will promote widespread technology implementation and drive a U.S. edge in low- and net-zero carbon manufacturing while helping to substantiate a market for low-carbon products.  

For more information on DOE’s role in industrial decarbonization, visit: DOE Industrial Technologies

DOE selected 33 projects for award negotiations with a total anticipated federal cost share of approximately $6 billion. 

DOE solicited applications for the Industrial Demonstrations Program with a Funding Opportunity Announcement (DE-FOA-0002936 or FOA) in March 2023 and conducted merit reviews of eligible applications. All eligible applications were evaluated through a rigorous merit review process. See section 5.2.2 of the FOA for the application technical review criteria. 

DOE’s funding for the Industrial Demonstrations Program aims to accelerate the implementation of industrial decarbonization technologies critical for combatting the climate crisis, while also creating economic opportunities and reinforcing American global manufacturing leadership. Demonstrating the technical and commercial viability of industrial decarbonization approaches will promote widespread technology implementation and drive a U.S. edge in low- and net-zero carbon manufacturing while helping to substantiate a market for low-carbon products.  

These projects are expected to create good-paying jobs and deliver public health benefits to communities around the country. DOE is committed to ensuring that these industrial decarbonization projects are designed, built, and operated safely and responsibly, in a way that reflects the best science and responds to the needs and inputs of local communities.  

OCED’s comprehensive Community Benefits Plan approach and phased project management approach will ensure the robust engagement of impacted communities throughout the lifecycle of the project, maximize benefits for local communities, and help minimize and mitigate negative impacts.

OCED will engage in early, frequent, and meaningful engagement with communities that host the Industrial Demonstrations Program projects. Communities will have substantive opportunities to engage with both OCED and the projects—starting during the negotiation process and extending throughout the full life cycle of each awarded project. Before projects are awarded, OCED will begin these engagements by co-hosting a series of regional briefings with groups of the selected project teams to engage and build relationships with local stakeholders. Additional engagement opportunities will be planned on a project-by-project basis. DOE may use information gained during these engagements to inform the negotiation process.  

Projects that are successfully negotiated and awarded are required to implement their Community Benefits Plans, including engaging with community and labor groups; investing in America’s workforce; advancing diversity, equity, inclusion, and accessibility; supporting environmental justice; and creating the greatest benefit for the greatest number of people within the vicinity of a facility. While each project is unique, all must pursue robust activities in these five areas. These plans are intended to evolve in response to community and worker input and will be assessed at each phase as part of DOE’s go/no-go decision points.  

Lastly, to ensure that federal investments are planned and executed in a responsible, equitable, and environmentally sound manner, OCED-funded projects must comply with applicable environmental and cultural resources laws, including, but not limited to, the National Environmental Policy Act (NEPA) and the National Historic Preservation Act (NHPA). A major component of this work is to encourage early and meaningful engagement with Tribal entities, other federal and state agencies, and public stakeholders throughout the project’s lifetime.   

For more information about the Industrial Demonstrations Program, please contact engage_industrialdemos@hq.doe.gov