The US Allocates $6 Billion to Support Industrial Decarbonization and Electrification

– US DOE announces a $6bn federal funding package for decarbonisation of 33 industrial projects across 20 states
– Funding will come from President Biden’s Infrastructure Law and focus on highest emitting industries like steel, paper, concrete, and glass making
– Projects include electrification of industrial processes, introduction of hydrogen-based technology, and aim to cut annual CO2 emissions by 77%

The US Department of Energy (DOE) announced a $6 billion federal funding package for the decarbonization of 33 industrial projects across 20 states. This funding is part of President Biden’s Bipartisan Infrastructure Law and Inflation Reduction Act and aims to support national net-zero plans. The funding will focus on reducing industrial greenhouse gas emissions, supporting union jobs, revitalizing industrial communities, and strengthening manufacturing competitiveness in the US.

The funding will target industries with the highest emissions such as steel, paper, concrete, and glass making. The projects will involve the electrification of industrial processes, replacing traditional coal-fired furnaces with electric arc furnaces and introducing hydrogen-based technology in ironmaking facilities. The goal is to significantly cut emissions from these sectors and create tens of thousands of jobs, with a focus on disadvantaged communities.

The selected projects will receive federal funding and are expected to leverage more than $20 billion in total to demonstrate commercial-scale decarbonization solutions for the industrial sector. This investment is aimed at moving the industry towards net-zero emissions and adopting new technologies to reduce CO2 emissions. For example, the cement and concrete projects will focus on technologies to make the production process net negative, while the metals industry will work on boosting recycling processes and decarbonizing supply chains.

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