The U.S. Department of Energy announced investments of over $250 million aimed at advancing projects and technologies to decarbonize the industrial sector, including $171 million for 49 selected projects to reduce industrial greenhouse gas emissions, and the opening of applications for $83 million of funding targeting hard-to-decarbonize sectors, such as chemicals, steel, food, and buildings.

The advancement of industrial decarbonization has been a key focus area for the Biden administration’s climate agenda, with the industrial sector accounting for nearly a third of the U.S.’ emissions. The administration’s Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) include allocations of nearly $500 billion to climate-focused investments in areas including carbon-free energy, manufacturing and clean technologies. 

U.S. Secretary of Energy Jennifer Granholm said:

“Ensuring America’s industrial sector and its robust workforce remain strong and competitive is key to maintaining our nation’s edge as a global economic powerhouse and accelerating President Biden’s vision of a strong, made-in-America clean energy future.”

Focus areas for the allocations for the selected projects include $37 million for projects focused on decarbonization opportunities in iron and steel production, including manufacturing technologies, electrification and utilizing hydrogen; $30 million for decarbonization technologies for high-volume chemicals, such as advanced separations processes, advanced reactor systems, and dynamic catalyst science; $25 million for projects aimed at decarbonizing industrial heat and thermal processes; $21 million to advance low carbon fuel utilization, and; $20 million for cement and concrete decarbonization projects and technologies.

The $83 million funding opportunity will be focused on applied research, development and demonstration targeting the highest-emitting sectors including chemicals and fuels, iron and steel, food and beverage, building and infrastructure materials, and forest products. According to the DOE, these sectors account for over 65% of U.S. industrial manufacturing emissions, and are essential to decarbonizing supply chains.

Granholm added:

“Today’s announcement will help advance the innovative technologies we need to lower costs and improve energy efficiency in America’s factories and industrial centers.”