While investors are pouring massive amounts of money into sustainability and the energy transition, much of the attention is on industries where transition strategies are well-defined.
At Emerald Strategy Group and Energy Transition Finance, the focus is on the areas that are hardest to decarbonize. These industries face the greatest challenges, but also have tremendous opportunities to reduce their greenhouse gas emissions.
Even for these industries where the transition from fossil fuels seems the hardest, there are several programs from government agencies like the Department of Energy that may help reduce costs and encourage the adoption of new technologies.
Indeed, there are several funding opportunities aimed at reducing the cost of chemical plant electrification, focusing on innovation, research, and development to decarbonize industrial processes, including the electrification of industrial heat. These initiatives are primarily supported by the U.S. Department of Energy (DOE), which offers financial assistance through grants, loans, and financing programs for startups, companies, and governmental bodies engaging in energy projects.
One significant announcement by the DOE’s Industrial Efficiency and Decarbonization Office (IEDO) includes a $38 million funding opportunity designed to accelerate cross-sector technologies needed for a clean energy economy. Additionally, there’s an intent to issue an $83 million funding opportunity targeting the decarbonization of the most energy- and emissions-intensive industrial subsectors. These efforts are part of a broader strategy to eliminate industrial greenhouse gas (GHG) emissions, enhance domestic manufacturing competitiveness, and create jobs.
Another notable program is the Clean Energy Manufacturing Innovation Institute for Industrial Decarbonization through Electrification of Process Heating, which announced up to $70 million in federal funding. This institute aims to develop and scale electrified processes that reduce emissions, improve flexibility, and enhance energy efficiency in industrial process heating.
Additionally, the DOE supports various grant, loan, and financing programs catering to different stakeholders, including startups, companies with proven technology, and state, local, or tribal governments seeking to fund energy projects. These programs are designed to assist in launching pilot projects, reaching commercial scale, or implementing energy projects at the governmental level.
For more detailed information on these programs and how to apply, you can visit the DOE’s funding and financing page at https://www.energy.gov/funding-financing, and specific opportunities like the Industrial Efficiency and Decarbonization Office’s funding opportunities at https://www.energy.gov/eere/industrial/industrial-efficiency-and-decarbonization-office.