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U.S. DOE Announces Award of up to $6 Billion to Projects Decarbonizing Energy-Intensive Industries
26th March 2024
The U.S. Department of Energy (DOE) through the Office of Clean Energy Demonstrations (OCED) will award up to $6 billion to 33 projects focused on decarbonizing energy-intensive industries in more than 20 U.S. states – the largest industrial decarbonization investment in U.S. history.
The projects selected for award negotiations will reduce the equivalent of more than 14 million tonnes of carbon-dioxide (CO₂) from several difficult-to-decarbonize industries. Seven chemicals and refining projects were selected, along with six cement and concrete projects, six iron and steel projects, five aluminum and metals projects, three food and beverage projects, three glass projects, two process heat projects, and one pulp and paper project.
Nearly 80% of the selected projects are in disadvantaged communities (as defined by the Justice40 Initiative) and each project will be expected to develop and implement a comprehensive Community Benefits Plan which require meaningful community engagement and ensure projects maximize benefits in local communities.
Carbon capture and storage (CCS) can provide significant emissions reductions in hard-to-abate industries. Concrete and steel are critical materials for developing and maintaining safe and durable infrastructure, like roads and buildings. Production of cement, iron, and steel calls for high temperature heat requirements which emit CO₂ and/or involve chemical processes that inherently result in CO₂ production. In a 2020 report on CCUS in Clean Energy Transitions, the IEA noted that heavy industries account for almost 20% of global CO₂ emissions and that CCUS is the most viable solution (and in some cases the only solution) for reducing emissions from cement, iron, steel and chemicals production.
OCED will host a series of national and regional virtual briefings in March and April to provide information on the selected projects and facilitate the engagement process. Register for briefings here.
Learn more about the 33 projects selected for award negotiations here.
Read the DOE announcement here.