Biden's $6 billion industrial carbon offensive
The Energy Department plans to award up to $6 billion across 33 projects to wring carbon dioxide from heavy industries like metals, chemicals, and cement.Why it matters: It's the "single largest industrial decarbonization investment in American history," DOE boss Jennifer Granholm told reporters.Industrial processes create roughly a fourth of U.S. CO2 emissions — and even close to a third — depending on how you slice the national pie.It's also the Biden administration's latest in a multi-pronged effort to tame domestic carbon emissions.State of play: The projects are funded largely through the Democrats' 2022 climate law, with some cash from the 2021 bipartisan infrastructure law, too.They would together provide yearly emissions cuts that match the annual CO2 output of 3 million gasoline-powered cars, the agency estimates.It's a federal cost-share with companies, so officials see over $20 billion in total investment.Monday's announcement also touts efforts to use union labor and tackle environmental justice — both key Democratic policy priorities.Data: Rhodium Group; Chart: Axios VisualsThe big picture: Making heavy industries climate-friendly is a tough nut to crack, as these sectors often need massive energy inputs and extremely high heat. And unlike the electricity system, a similarly large CO2 source, solutions are often lacking at commercial scale.Zoom in: Examples of the 33 projects include...Converting a Constellium aluminum plant in West Virginia to use furnaces that can run on cleaner fuels including hydrogen.Installing a CO2 capture and storage system at a Heidelberg Materials cement plant in Indiana.Slashing process heat emissions from Kraft Heinz facilities in nine states by using various electrification technologies.Yes, but: These are initial decisions subject to more grant negotiations. And if funded, a project faces "go/no-go" decision points at various phases, where the agency weighs progress and community benefits.What's next: Officials hope this spurs use of cleaner tech in these industries more widely — in the U.S. and worldwide."The solutions that we are funding are replicable, and they're scalable," Granholm said.
The Energy Department plans to award up to $6 billion across 33 projects to wring carbon dioxide from heavy industries like metals, chemicals, and cement.Why it matters: It's the "single largest industrial decarbonization investment in American history," DOE boss Jennifer Granholm told reporters.Industrial processes create roughly a fourth of U.S. CO2 emissions — and even close to a third — depending on how you slice the national pie.It's also the Biden administration's latest in a multi-pronged effort to tame domestic carbon emissions.State of play: The projects are funded largely through the Democrats' 2022 climate law, with some cash from the 2021 bipartisan infrastructure law, too.They would together provide yearly emissions cuts that match the annual CO2 output of 3 million gasoline-powered cars, the agency estimates.It's a federal cost-share with companies, so officials see over $20 billion in total investment.Monday's announcement also touts efforts to use union labor and tackle environmental justice — both key Democratic policy priorities.Data: Rhodium Group; Chart: Axios VisualsThe big picture: Making heavy industries climate-friendly is a tough nut to crack, as these sectors often need massive energy inputs and extremely high heat. And unlike the electricity system, a similarly large CO2 source, solutions are often lacking at commercial scale.Zoom in: Examples of the 33 projects include...Converting a Constellium aluminum plant in West Virginia to use furnaces that can run on cleaner fuels including hydrogen.Installing a CO2 capture and storage system at a Heidelberg Materials cement plant in Indiana.Slashing process heat emissions from Kraft Heinz facilities in nine states by using various electrification technologies.Yes, but: These are initial decisions subject to more grant negotiations. And if funded, a project faces "go/no-go" decision points at various phases, where the agency weighs progress and community benefits.What's next: Officials hope this spurs use of cleaner tech in these industries more widely — in the U.S. and worldwide."The solutions that we are funding are replicable, and they're scalable," Granholm said.
The Energy Department plans to award up to $6 billion across 33 projects to wring carbon dioxide from heavy industries like metals, chemicals, and cement.
Why it matters: It's the "single largest industrial decarbonization investment in American history," DOE boss Jennifer Granholm told reporters.
- Industrial processes create roughly a fourth of U.S. CO2 emissions — and even close to a third — depending on how you slice the national pie.
- It's also the Biden administration's latest in a multi-pronged effort to tame domestic carbon emissions.
State of play: The projects are funded largely through the Democrats' 2022 climate law, with some cash from the 2021 bipartisan infrastructure law, too.
- They would together provide yearly emissions cuts that match the annual CO2 output of 3 million gasoline-powered cars, the agency estimates.
- It's a federal cost-share with companies, so officials see over $20 billion in total investment.
- Monday's announcement also touts efforts to use union labor and tackle environmental justice — both key Democratic policy priorities.
The big picture: Making heavy industries climate-friendly is a tough nut to crack, as these sectors often need massive energy inputs and extremely high heat.
- And unlike the electricity system, a similarly large CO2 source, solutions are often lacking at commercial scale.
Zoom in: Examples of the 33 projects include...
- Converting a Constellium aluminum plant in West Virginia to use furnaces that can run on cleaner fuels including hydrogen.
- Installing a CO2 capture and storage system at a Heidelberg Materials cement plant in Indiana.
- Slashing process heat emissions from Kraft Heinz facilities in nine states by using various electrification technologies.
Yes, but: These are initial decisions subject to more grant negotiations.
- And if funded, a project faces "go/no-go" decision points at various phases, where the agency weighs progress and community benefits.
What's next: Officials hope this spurs use of cleaner tech in these industries more widely — in the U.S. and worldwide.
- "The solutions that we are funding are replicable, and they're scalable," Granholm said.