Biden Administration Announces Significant Funding Initiative for Decarbonization Projects

On March 8, 2023, the Biden Administration announced a further opportunity for companies to take advantage of significant federal funding intended to promote clean manufacturing and reduce greenhouse gas emissions in federal procurement.  In line with the Biden Administration’s push to implement a clean energy economy (as we have previously covered, for example, here and here), the Department of Energy (DOE) will provide $6 billion in grants through the new Industrial Demonstrations Program to “accelerate decarbonization projects in energy-intensive industries and provide American manufacturers a competitive advantage in the emerging global clean energy economy.”  Funding for these grants will come from the recently passed Infrastructure Investment and Jobs Act and Inflation Reduction Act.

This initiative is specifically geared towards identifying new manufacturing technologies and methods for decarbonization and reduction of greenhouse gas emissions from the industrial sector, including the production processes for iron and steel, aluminum, cement and concrete, glass and industrial ceramics.  DOE seeks to prioritize a portfolio of “first-of-a-kind or early-stage commercial-scale projects” that will lead to “follow-on investments for widespread adoption of the demonstrated technologies” while simultaneously enabling new markets for cleaner products and creating quality jobs in the surrounding communities.  DOE will provide up to 50% of the cost for each eligible project, with concept papers due by April 21, 2023, and full applications due by August 4, 2023.

The Administration also announced the launch of the Federal-State Buy Clean Partnership, which is intended to support the use of lower-carbon infrastructure materials in state-funded projects. The Partnership is comprised of 12 states, including, California, Colorado, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, New Jersey, New York, Oregon, and Washington. While the details are still limited regarding how this partnership will roll out, state level commitment to the procurement of “clean” industrial products would, if realized, further drive demand for emerging technologies and provide new opportunities for contractors.

Crowell will continue to monitor and provide updates on the Administration’s climate sustainability measures and funding opportunities.