Biden administration to invest $6 billion in industrial decarbonization projects
![Biden administration to invest $6 billion in industrial decarbonization projects](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/03/2149094958.webp)
The US Department of Energy (DOE) announced the selection of 33 projects slated to receive funding of up to $6 billion. These initiatives aim to advance technologies that significantly reduce emissions in challenging-to-decarbonize industries, including chemicals, steel, food, refining, cement, and more.
This announcement represents the largest US investment in industrial decarbonization to date. The projects are projected to slash over 14 million metric tons of CO2 emissions annually from some of the most emission-intensive and hard-to-abate sectors.
Industrial decarbonization has emerged as a pivotal focus area within the Biden administration’s climate agenda, given that the industrial sector accounts for nearly a third of the nation’s emissions.
Key legislative efforts, such as the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL), allocate close to $500 billion to climate-focused investments, encompassing carbon-free energy, manufacturing, and clean technologies.
Also read: Biden administration proposes significant fuel tax hike for business jet operators
These newly awarded projects form part of the Biden Administration’s Industrial Demonstrations Program, launched by the DOE last year. The program provides up to 50% of the cost for pioneering or early-stage decarbonization ventures, aiming to scale them up within this decade.
Initiatives accelerating the industry towards deep decarbonization, fostering subsequent investments for widespread technology adoption, opening avenues for cleaner product markets, and benefiting local communities are prioritized.
Funding sources include nearly $500 million from the Bipartisan Infrastructure Law and over $5.4 billion from the Inflation Reduction Act.
As per the DOE, these projects are anticipated to slash emissions by an average of 77%, with federal investment matched by project counterparts to mobilize over $20 billion towards the demonstration of commercial-scale decarbonization solutions.
These pathways encompass energy efficiency, electrification, and alternative fuels and feedstocks.
Also read: Biden EPA trims power-plant rule, eyes future gas fleet restrictions
The selected projects span various sectors, including chemicals, refining, cement, steel, aluminium, metals, food, beverage, glass, process heat, and pulp and paper.
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