The United States is offering $6 billion in funding to decarbonize industrial manufacturing, which accounts for 24% of the nation’s greenhouse gas emissions. This is a crucial step in the Biden Administration’s effort to achieve a carbon-free economy by 2050.
According to a statement released Wednesday, the Energy Department’s Industrial Demonstrations Program will fund up to 50 percent of the cost of pioneering or early-stage projects aimed at removing carbon dioxide from the production of concrete, steel, chemicals, and other energy-intensive materials. Twelve states have pledged to use low-carbon infrastructure products in state-funded projects in support of the initiative.
While utilities have made substantial strides in reducing emissions, the industrial sector has presented a greater challenge. Developing new manufacturing systems may be costly and will likely increase production costs. Government funding can alleviate a portion of this burden, while customer commitments will provide companies with an incentive to transition to low-carbon processes.
It is anticipated that the programme will also attract private sector investment, which could ultimately result in $12 billion in total funding for decarbonization initiatives.
