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OCED Awards $6 Billion in Grants for Industrialization Decarbonization

On March 25, the Office of Clean Energy Demonstrations (OCED) at the Department of Energy announced that it had selected thirty-three projects to receive up to $6 billion in funding through the Industrial Demonstrations Program. Matching funds provided by recipients will generate a total investment of more than $20 billion in these projects. The awards are intended to decarbonize energy-intensive industries, reduce pollution, and create tens of thousands of new jobs.

This marks the largest single allocation of federal funds for industrial decarbonization in the country’s history, according to DOE Secretary Granholm. The projects are expected to prevent more than 14 million metric tons of carbon dioxide emissions each year, equivalent to the emissions from 3 million gasoline-powered cars. Many of the projects will deploy innovative technologies with the potential for widespread adoption, creating the prospect for significant medium-term emissions reductions. The grants will advance I3’s core goals of strengthening the American manufacturing base, generating well-paying jobs, curbing emissions, and increasing air quality in affected communities.

OCED selected projects in multiple industrial sectors, including cement/concrete, iron/steel, pulp/paper, chemical/refining, and food and beverage.

This is a breakdown of the funding by sector:

SectorFunding# of Projects
Cement and concrete$1.6 billion6
Iron and steel$1.5 billion6
Chemicals and refining$1.3 billion7
Aluminum and metals$900 million5
Process Heat$145 million2
Pulp and paper$46.6 million1
Glass$45 million3
Food and beverage$21 million3

Project Characteristics

The grants will fund projects in more than 20 states throughout the country. Nine of the thirty-three grants went to projects in Gulf Coast states, including a sustainable ethylene project with participation from I3 member LanzaTech. Eight were awarded to projects in Midwestern states. Several grant recipients will undertake projects at multiple sites. The map below reflects the geographical distribution of the awards.

The dollar value of the awards ranged widely. OCED granted the maximum award of $500 million to five projects. Four projects received awards for less than $50 million. The average grant size was approximately $180 million. More than half the funding went to projects in the iron/steel and cement/concrete sectors.

The I3 Blueprint and the Industrial Demonstrations Program

The projects selected for the Industrial Demonstrations Program will advance several of the key goals of I3’s 2024 Federal Policy Blueprint.

Bolstering Technologies Within and Across Industrial Sectors

OCED awarded funding to projects across various industrial sectors. Successful deployment of new technologies in concrete, steel, and chemical refining can transform production processes within these sectors. Additionally, innovative technologies developed to reduce emissions in one sector can be applied in other sectors.

Industry shares some common challenges across sectors, such as reducing emissions associated with process heat. According to DOE, process heat accounts for nearly a third of the manufacturing sector’s total energy-related emissions. A grant of $145 million will help Skyven Technologies develop steam-generating heat pumps that will replace natural gas boilers in multiple industries. Diageo America Supply will combine heat batteries, onsite renewable energy, and electric boilers to eliminate the use of natural gas-fired heat at its beverage facilities in Kentucky and Illinois.

Demonstrating the Viability of Carbon Capture Technology for Heavy Industry

Meeting midcentury climate goals will require a significant reduction in industrial emissions. Many sectors can electrify production methods, substitute green hydrogen for fossil fuels to generate heat, and deploy new thermal storage technologies to curb emissions. In other cases, such as cement manufacturing, facilities will need to leverage additional technologies, like carbon management, to eliminate all emissions.

The National Cement Company of California project in Lebec, California, provides a model for employing multiple solutions to tackle emissions. National Cement will use a variety of innovative methods to decrease the emissions associated with manufacturing cement, including burning biomass instead of fossil fuels to generate heat and using calcined clay in place of clinker. The company will also capture and store the remaining carbon dioxide emissions that cannot be eliminated through alternative manufacturing processes.

Thousands of miles away in Mitchell, Indiana, Heidelberg Materials US will build one of the world’s most ambitious carbon capture, transport, and storage systems to capture 95 percent of the emissions generated by one of the nation’s largest cement manufacturing facilities. Heidlberg will sequester the captured carbon dioxide in a geologic formation underneath the plant. DOE funded earlier engineering studies that demonstrated the viability of deploying carbon capture technology on the site, underscoring the importance of consistent government support to develop innovative emissions reduction technologies

Market Innovation

I3’s 2024 Federal Policy Blueprint highlights the need for transformational change to industrial processes. Deployment is also critical. Industry needs ongoing government support to test new technologies to determine which approaches will be most impactful. The projects funded by OCED have the potential to radically transform manufacturing processes across multiple industries.

Although funding through OCED’s Industrial Demonstrations Program was awarded to only a few dozen manufacturers, the selectees represent a critical investment in the larger effort to reach midcentury climate goals. Continued federal investment in research and development is essential to drive market innovation and accelerate deployment of new technologies. The United States cannot achieve its midcentury climate goals if it does not significantly decrease industrial emissions, and it cannot slash industrial emissions without deploying diverse technologies with the potential for transformational change.

The announcement of the Industrial Demonstrations Project awards is a watershed moment in the effort to decarbonize the industrial sector, which has traditionally not received the support provided to the transportation and electricity sectors. I3 looks forward to working with recipients to transform and equitably decarbonize the industrial sector.

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Labor Engagement Manager for Industrial Innovation and Carbon Management, GPI

Alejandro comes to GPI from Labor Union SEIU-United Service Workers West. He represented union workers from downtown Los Angeles and LA’s westside corridor of Century City, Westwood, and Beverly Hills. Alejandro enforced various collective bargaining agreements for union workers, ensuring annual wage increases, health insurance, and other benefits and protections. In addition, he worked with union leaders and outside stakeholders, such as community partners, public agencies, politicians, and industry experts, to develop and execute union campaigns. Alejandro was also part of the Los Angeles-Justice for Janitors 2021 union contract campaign—he helped execute and coordinate large-scale actions across LA’s metropolitan area. Previously, he served as the Nevada state canvassing director at For Our Future Action Fund. He holds a BA in international studies and Italian from the University of Kansas.

Senior Program Coordinator for Industrial Innovation and Carbon Management, GPI

Carrie Danner joined the Great Plains Institute in 2023 and serves as the operations coordinator for the Industrial Innovation and Carbon Management team. In her work, she supports all projects within the program to elevate operations, particularly in grant-making and event planning. Carrie earned a bachelor’s degree from Knox College in environmental studies. Prior to joining GPI, she supported programs at the Conservation Corps of Minnesota & Iowa as their member experience administrator.

Industry Program Coordinator, GPI

Alana joined GPI in 2024 as a program associate on the Industrial Innovation and Carbon Management team, specifically supporting the Industrial Innovation Initiative, where she helps to advance industrial decarbonization through GPI’s consensus-building approach. Alana previously worked as an account executive at Jamf, where she helped current K-12 education customers improve and scale the management and security of their Apple device deployments. Alana has spent most of her professional years working with Minnesota nonprofits, including two years as an AmeriCorps member with Twin Cities Habitat for Humanity. She holds a bachelor’s degree in community environmental studies from the University of Wisconsin-Eau Claire.

Zachary Byrum, Research Analyst, WRI

Zachary Byrum is a Research Analyst in WRI's U.S. Climate Program, where he provides technology and policy analysis for carbon removal and deep decarbonization. His work focuses on pathways to reduce industrial emissions as well as bolstering technological carbon removal. Prior to WRI, Zach was a research assistant in the Carbon Management Research Initiative at the Center on Global Energy Policy. In the preceding years, he served as White House Intern in the National Economic Council under the Obama Administration and then an assistant analyst at the Congressional Budget Office. Zach holds a Master of Public Administration in Environmental Science and Policy from the School of International and Public Affairs at Columbia University and a B.A. in Economics and Political Science from Goucher College.

Senior Advisor of Industrial Innovation, WRI United States

Angela Anderson is the Director of Industrial Innovation and Carbon Removal in the Climate Program. She leads WRI's growing portfolio of work in industrial decarbonization and carbon removal and aims to change narratives around “hard-to-abate” sectors and promote the natural and technological interventions required to achieve net-zero targets. Prior to joining WRI, Angela worked as a program director, coalition builder, international advocate, and campaign strategist. She led the Climate and Energy Program at the Union of Concerned Scientists for ten years; facilitated US-NGO engagement in the international climate negotiations while at US Climate Action Network and at the Pew Environmental Trust; and founded Clear the Air, a national coalition to reduce pollution from power plants. Angela holds a B.A. in political science from Colorado State University.

Vice President of Industrial Innovation and Carbon Management, GPI

Patrice Lahlum is the Vice President of the Industrial Innovation and Carbon Management program at the Great Plains Institute. The Institute, headquartered in Minneapolis, MN, works with diverse stakeholders and communities across the country to transform the energy system to benefit people, the economy, and the environment. We strive to combine our unique consensus-building approach, expert knowledge and analysis, and local action to promote solutions that strengthen communities, shore up the nation’s industrial base, and enhance domestic energy independence, all while eliminating carbon emissions. Patrice oversees several initiatives, including the Carbon Capture Coalition, Industrial Innovation Initiative, Carbon Action Alliance, and the Regional Carbon Capture Deployment Initiative.

Senior Content Specialist for Industrial Innovation and Carbon Management, GPI

Kate Sullivan joined the Great Plains Institute in 2019. As Senior Content Specialist, Kate uses her analytical and design skills to provide research, writing, and logistical support across the Industrial Innovation and Carbon Management team. Prior to joining GPI, Kate worked as an Energy Counselor in the Center for Energy and Environment’s residential department, assisting homeowners with their energy needs and providing resources for efficiency upgrades. Kate earned her BA in Biology from St. Olaf College with an emphasis in Environmental Studies.

Senior Program Manager for Industrial Innovation and Carbon Management, GPI

Jill Syvrud joined the Great Plains Institute in 2017 and serves as the program manager for the Industrial Innovation and Carbon Management Program. In addition to overseeing the overall program, Jill directly supports the Industrial Innovation Initiative, a coalition advancing decarbonization solutions for the Midcontinent region’s most important industrial sectors. Jill earned a bachelor of science in biology from the University of Wisconsin–Eau Claire and a master of science degree in science technology and environmental policy from the University of Minnesota’s Humphrey School of Public Affairs. Jill’s past experience includes multiple graduate research assistantships concentrating on technology innovation and sustainable megacities, as well as a previous position as an administrative and outreach coordination intern with the Midwest Renewable Energy Association.