On March 8, 2023, DOE’s Office of Clean Energy Demonstrations (OCED) announced a new funding opportunity for industrial decarbonization projects drawing on funding provided by IRA section 50161 for large-scale facility-level overhaul retrofits of existing facilities, common technologies across multiple facilities, or new builds with accelerated planning and development. In reviewing project applications, DOE will prioritize a portfolio of projects with the greatest potential to accelerate industry towards deep decarbonization; spur follow-on investments for widespread adoption of the demonstrated technologies; enable new markets for cleaner products; and, benefit local communities.
The Industrial Demonstrations Program is implemented by OCED in collaboration with the Office of Manufacturing and Energy Supply Chains (MESC) and the Industrial Efficiency and Decarbonization Office (IEDO). The $12 billion in total project investment is comprised of funding from section 50161 of the IRA ($5.46 billion), section 41008 of the Bipartisan Infrastructure Law ($430 million), and $6 billion in projected private sector cost share. The program goal is to target high-emitting industries such as steel, iron, aluminum, cement, and concrete and employ decarbonization technologies to create a significant impact. As the industrial sector contributes to nearly one third of U.S. carbon emissions, this funding is a key step to fully decarbonize heavy industries and reduce harmful pollution through enabling new markets for cleaner products and spurring follow-on investments for widespread adoption of demonstrated technologies.
Applicants must submit a Community Benefits Plan to ensure they are meaningfully engaging with the surrounding communities; creating quality jobs and investing in the American workforce; advancing diversity, equity, inclusion, and accessibility; and supporting environmental justice.
Concept papers are due by April 21, 2023, and full applications are due by August 4, 2023.