Decarbonizing the industrial sector

The energy transition to renewable energies aims to achieve a low-emission global economy to reduce the climate crisis.

By: María Fernanda

The decarbonization sought by all countries worldwide is creating the need for all governments to support advancing new technologies to transform the industrial sector. The U.S. Department of Energy, through the Clean Energy Demonstrations Office, released a Notice of Intent to provide $6.3 billion. It seeks to give the country a competitive advantage in the global race to lead in low-carbon and net zero-emissions manufacturing.

The project will be funded by President Biden's Bipartisan Infrastructure and Inflation Reduction Act. The anticipated funding announcement will include up to $5.8 billion from the Inflation Reduction Act and $500 million from the Bipartisan Infrastructure Act.

The Industrial Demonstrations Program aims to fund projects focused on the industries with the highest emissions and where decarbonization technologies could have the most significant impact: which are iron and steel, cement and concrete, chemicals and refining, food and beverage, paper and forest products, aluminum, other energy-intensive manufacturing industries, and cross-cutting technologies.

The Joe Biden administration seeks to rebuild U.S. leadership in the manufacturing sector through widespread demonstration and deployment of all of these projects within industries. This comes as countries, businesses, and consumers worldwide shift to low-carbon feedstocks to meet decarbonization commitments.

David Crane, director of the Clean Energy Demonstrations Office, stated, "Domestic manufacturing is the backbone of the U.S. economy. Accelerating the inevitable decarbonization of the nation's manufacturing sector will give a 'first-mover' advantage to American industry, thereby strengthening the technological and economic competitiveness of American industry, spurring innovation and economic growth, creating good-paying jobs

THE DECARBONIZATION SOUGHT BY ALL COUNTRIES

WORLDWIDE IS CREATING THE NEED FOR ALL GOVERNMENTS TO SUPPORT ADVANCING NEW TECHNOLOGIES TO TRANSFORM THE INDUSTRIAL SECTOR for American workers, and enabling a clean and more equitable future for all Americans."

The industrial sector is considered one of the most difficult to decarbonize due to the different energy inputs, processes, and operations. Currently, industrial emissions account for one-third of the nation's carbon footprint. Moreover, these emissions come from heating fuel and electricity and carbon-intensive raw materials and processes.

50% of the cost of each project to catalyze impactful, scalable, and replicable demonstrations that will maximize emissions reductions, prioritize energy and environmental justice, and create goodpaying jobs will be provided by OCED. The Office of Energy Supply Chains and Manufacturing and OCED have worked together on this funding opportunity.

Just as decarbonization is essential, communities are vitally important. That's why the funding announcement will require each applicant to submit a community benefits plan to ensure that these projects benefit host communities and neighbors. The plan must consider community and workforce engagement; investment in the U.S. workforce; promotion of diversity, equity, inclusion, and accessibility; and implementation of the Justice40 Initiative.