The Biden administration is on the verge of allocating approximately $6.3 billion in numerous grants to aid industries facing challenges in reducing emissions, sources familiar with the matter reveal.
The specifics of the funded projects are anticipated to be disclosed as early as Monday, according to insiders who spoke on condition of anonymity as the information hasn’t been officially released yet. These grants will be distributed across sectors such as cement, glass, chemicals, metals, and pulp and paper, they disclosed.
Targeting industries responsible for nearly a quarter of US emissions, the funding aims to tackle sectors that are complex and costly to transition to lower-carbon technologies. Addressing these sectors is crucial for the White House to achieve its objective of halving greenhouse gas emissions by 2030 and attaining net-zero emissions by mid-century.
The Department of Energy, responsible for the grant allocation, had previously called for full applications for over 100 proposals.
Among these, Cleveland-Cliffs Inc. is reportedly proposing to utilize hydrogen in steel production, along with another endeavor to expand metal production for electrical transformers and electric vehicle motors at its Butler Works plant near Pittsburgh, according to one source. Century Aluminum Co., headquartered in Chicago, has been encouraged to advance on multiple proposals, including the construction of the first primary smelter for the energy-intensive metal in the US in decades, the source added.
Both the Energy Department and the mentioned companies did not respond to requests for comments.
Nearly $5.5 billion of the grant funds will originate from President Joe Biden’s landmark climate legislation, the Inflation Reduction Act. Announced by the Energy Department last March, the funding aims to “significantly reduce industrial emissions” and showcase pioneering or early-stage decarbonization technologies that were previously deemed distant.
“We regularly hear from industrial firms keen on decarbonizing their facilities, but the initial costs can be overwhelming,” remarked Nora Esram, a senior research director at the American Council for an Energy-Efficient Economy, a non-profit based in Washington. “The federal funds are designed to empower them to invest in new technologies for emission reduction while bolstering community development.”
Esram also noted that the funding will assist companies in staying ahead of foreign competitors as demand for low-carbon products rises among buyers.
