The tools here will provide the resources and connections needed to promote industrial transformation, including:
- information about state-level industrial emissions,
- emissions reduction strategies,
- and emissions reduction projects.
The resources and targeted education in this toolkit will help users gain the context and information needed to confidently communicate industry’s role in the energy transition, identify actionable measures states can take to accelerate emissions reductions, and direct stakeholders to key technical partners and peer projects.
State-by-State
Click on a state to learn more about what industry looks like in that state, including the top-emitting sectors, the geographical distribution of these facilities, and which are located in disadvantaged communities.
Don’t see a page for your state yet? More are coming! Check back soon or contact us.
The Industrial Context
America’s industrial sector produces cement, steel, minerals, food, paper, and other materials that make modern life possible. This includes the raw materials that are essential components of wind turbines, batteries, and other technologies driving the clean energy transition. Industry powers the economy, providing well-paying jobs for millions of Americans.
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A Challenge and Opportunity
But there is a catch. The industrial sector is responsible for nearly a third of US emissions (including the electricity used by industrial facilities). This industrial share is expected to grow as electric power generation continues to shift to more renewables and electric vehicles command a greater share of the transportation market. Under “business as usual,” industry is on track to be the highest emitting sector by the early 2030s. The same is true on a global scale as shown in the graph below from the Rhodium group. Industry is expected to continue growing, while emissions from other sectors decrease or remain relatively steady. The US has an opportunity to lead in industrial emissions reduction technologies.
Meeting midcentury climate goals will require an industrial transformation. American industry will have to take a series of small steps and big leaps to ensure that it continues to provide millions of jobs, remains competitive internationally, and significantly reduces its emissions.
Luckily, these goals are mutually reinforcing. For example, installing more efficient combustion technology can create jobs, reduce operating costs, and slash emissions. This process will not be easy. Change never is. However, the private and public sectors are working hard to develop the policies and technologies required to make this transformation a success.
Industrial transformation and state governments
State governments have a vital role to play in the industrial transformation. This role will vary depending on a state’s industrial landscape and political environment, among other factors. Given the variety and complexity of processes and emission sources across subsectors, industrial transformation will require a diverse set of strategies, including:
- Electrification and energy efficiency measures
- Innovative approaches to improve material and process efficiencies
- Switching to clean fuels and feedstocks (including clean hydrogen)
- Carbon management
- Market strategies to encourage procurement of low-carbon products
The good news is that momentum for change is building. The federal government is providing unprecedented financial support for industrial decarbonization, as seen in recent actions such as the Bipartisan Infrastructure Law and Inflation Reduction Act. The table below lays out these funding levels. Industry recognizes that it must reduce emissions to remain competitive in markets that impose carbon fees.
ESTIMATED FEDERAL FUNDING FOR INDUSTRIAL DECARBONIZATION
Federal Funding Sources | Estimated Federal Funding Going to Industrial Decarbonization |
---|---|
Carbon Capture Demonstration Projects Program | $761 Million |
Carbon Capture Large-Scale Pilot Projects | $562 Million |
Regional Clean Hydrogen Hubs Program | $1.2 – $2 Billion |
Industrial Assessment Centers Implementation Grant Program | $400 Million |
Advanced Energy Manufacturing and Recycling Grants | $375 Million |
Carbon Utilization Procurement Grants | $100 Million |
OCED Industrial Demonstrations Program | $6 Billion |
Loan Programs Office: Title XVII Clean Energy Financing Program | $40 Billion |
Federal Buy Clean Initiative: General Services Administration’s IRA Low Embodied Carbon Material Requirements | $2 Billion |
Qualifying Advanced Energy Project Credit (48C) Program | $1.3 Billion |
Industrial Efficiency and Decarbonization (IEDO) Funding Opportunity Announcement | $135 Million |
IEDO FY23 Multi-topic Funding Opportunity Announcement | $171 Million |
IEDO FY24 Energy and Emissions Intensive Industries Funding Opportunity Announcement | $83 Million |
Totals | $53 – $54 Billion |
Section 1: Industrial Electrification
Electrifying processes currently powered by fossil fuels is one of the most promising ways to reduce emissions in the near term. That’s why the toolkit has an entire section devoted to electrification. (More sections covering other industrial solutions will be added in the future.) These resources will help states and the industrial sector chart a realistic course to reducing emissions through electrification and energy efficiency measures.
Section 2: Technical Assistance
Not sure where to go for advice about a project? Small and medium-sized manufacturers can turn to their local Industrial Training & Assessment Centers for energy assessments and recommendations about facility improvements. Seeking guidance about onsite energy options? One of the 10 regional Technical Assistance Partnerships can help. Looking to speak to another company implementing emissions reductions projects? Use our Office of Clean Energy Demonstrations (OCED) Industrial Demonstration Program (IDP) award sheet to find relevant projects and contact information.
Section 3: Additional Resources
Industrial transformation is a wide-ranging topic that encompasses technology, policy, economics, and much more. These external resources reflect this diversity, including a podcast that provides a detailed overview of recent federally funded industrial projects, an industrial heat pump procurement toolkit, and more. Resources will continuously be added, so be sure to visit again to see what’s new.
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