The US Department of Energy (DOE) unveiled a groundbreaking initiative on Monday, announcing up to USD 6 billion (EUR 5.5 billion) in funding for 33 projects aimed at decarbonizing energy-intensive industries. This move marks the largest investment in industrial decarbonization in American history, according to the department.
US Secretary of Energy Jennifer Granholm emphasized the significance of the initiative, stating, “Spurring on the next generation of decarbonization technologies in key industries like steel, paper, concrete, and glass will keep America the most competitive nation on Earth.”
The projects, which represent over USD 20 billion in combined federal and private funding, are expected to achieve an average carbon emissions reduction of 77%. They will leverage a variety of solutions, including energy efficiency, electrification, and alternative fuels like clean hydrogen.
The 33 selected projects span a range of industries, including seven chemicals and refining projects, six cement and concrete projects, six iron and steel projects, five aluminum and metals projects, three food and beverage projects, three glass projects, two process heat-focused projects, and one pulp and paper project. Funding for these projects will come from the Bipartisan Infrastructure Law and the Inflation Reduction Act, with USD 489 million allocated from the former and USD 5.47 billion from the latter. The DOE initially made the USD 6 billion funding available in March 2023.
In the iron and steel sector, for example, two hydrogen-related projects are set to receive up to USD 500 million each in federal investment.
One project, led by SSAB, aims to build a commercial-scale facility in Mississippi using fossil-free direct reduced iron (DRI) technology with 100% hydrogen. This project will also involve expanding SSAB's steelmaking facility in Iowa to use the resulting hydrogen-reduced DRI. SSAB has already secured a letter of intent from Hy Stor Energy to supply green hydrogen and renewable electricity to the DRI facility.
In Ohio, the Cleveland-Cliffs Steel Corporation is leading a project to install a hydrogen-ready flex-fuel DRI plant and two electric melting furnaces at its Middletown Works mill.
Another noteworthy project is the Green Aluminum Smelter, led by Century Aluminum Company. This initiative aims to construct the first new US primary aluminum smelter in 45 years, featuring energy-efficient design and the use of carbon-free energy.
Additionally, a project led by a US subsidiary of Danish clean energy group Orsted A/S was selected for an award of up to USD 100 million. Named Star e-Methanol and located in the Texas Gulf Coast, this project plans to use captured carbon dioxide from a local industrial facility to produce e-methanol, targeting the decarbonization of hard-to-electrify sectors like shipping. The Orsted facility is expected to produce up to 300,000 tonnes of e-methanol per year.
