US allocates historic $6 billion for industrial emissions reduction projects

The United States has allocated a historic $6 billion to support projects aimed at reducing industrial emissions. This substantial investment underscores the nation's commitment to combating climate change and transitioning towards cleaner, more sustainable industrial practices.

Energy Secretary Jennifer Granholm is set to announce significant awards during her visit to a Cleveland-Cliffs Steel Corp facility in Middletown, Ohio. The facility stands to receive up to $500 million to implement cutting-edge technologies, including two new electric arc furnaces and hydrogen-based technology. 

These advancements are expected to slash greenhouse gas emissions by a staggering 1 million tons, marking a pivotal step towards cleaner, more sustainable industrial practices. Granholm's unveiling underscores the government's commitment to fostering innovation and driving tangible progress in reducing emissions within the industrial sector.

The funding will bolster initiatives focused on carbon capture, utilization, and storage, as well as other innovative technologies designed to curb greenhouse gas emissions from industrial sources. By incentivizing and scaling up these efforts, the US aims to significantly contribute to global emissions reduction goals while fostering innovation and economic growth in the clean energy sector.

This project, unveiled the largest industrial decarbonization investment in US history, leveraging a total of $20 billion, including companies' contributions, and are projected to eliminate 14 million metric tons of pollution annually, equivalent to removing 3 million gas-powered vehicles from the road. The Portland Cement Association praised the initiative, highlighting the cement industry's strides towards carbon neutrality.

Manufacturing construction materials, notably cement, is a significant source of global carbon dioxide emissions, accounting for 7% in 2019. President Joe Biden's reelection campaign coincides with these announcements, emphasizing economic policies and job creation. Granholm emphasized emissions reduction across various industries, including iron, steel, cement, aluminum, and chemicals, which collectively contribute to one-third of US carbon emissions.

Century Aluminum will receive funding to establish the first US primary aluminum smelter in 45 years, reducing emissions by 75%. Dow Chemical and Kraft Heinz will use funds to decarbonize operations, while ExxonMobil will transition to hydrogen for ethylene production. Notably, nearly 80% of the projects benefit disadvantaged communities, addressing years of divestment.