Seeking to reduce emissions and bolster U.S. manufacturing, the Department of Energy announced $254 million in funding for projects that will reduce industrial greenhouse gas emissions.

Most of the funding will support 49 projects in 21 states and help accelerate innovation in decarbonization technologies.

What You Need To Know

  • The Department of Energy will invest $254 million to reduce industrial greenhouse gas emissions and bolster U.S. manufacturing

  • $171 million will support 49 projects in 21 states to accelerate innovation in decarbonization technologies

  • The funding is targeting the chemical, steel, building and food industries

  • It is being offered as part of the DOE's Energy Earthshots program to reduce greenhouse gas emissions from transportation, chemical production and industrial heat

“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,” U.S. Secretary of Energy Jennifer M. Granholm said in a statement.

The 49 projects will be conducted by a mix of private industry, academic institutions, nonprofits and Department of Energy labs. They will each get a portion of $171 million to pursue applied research and development and to validate technologies for pilot projects to prove they work.

The DOE said the projects will pursue ways to reduce energy use and industrial greenhouse gas emissions and should be applicable across industries to tackle the challenges they share. The largest sum will go toward projects to decarbonize the chemical industry, which makes up 40% of U.S. industrial energy use and emissions, as well as iron and steel production.

Another $83 million in funding will be available through an application process for hard-to-decarbonize industries such as food and beverage manufacturing; chemicals and fuel; forest products; and building and infrastructure materials, including cement, concrete, asphalt and glass. The R&D dollars will pursue a mix of technologies, including low-carbon fuels and hydrogen-fueled heating.

The investments are part of the DOE’s Energy Earthshots programs targeting some of the most difficult areas for transitioning to clean energy by 2035. The Clean Fuels and Products Shot seeks to reduce greenhouse gas emissions from transportation and chemical production by 85% over the next 11 years. The Industrial Heat Shot is also working to reduce emissions 85% by 2035 by developing technologies that can decarbonize industrial heat. Used to remove moisture, separate chemicals, create steam, treat metals and melt plastics, industrial heat makes up 9% of U.S. emissions and 33% of the nation’s energy use.