Industrial Decarbonization
Program Tracker
The following IIJA and IRA funding programs are organized according to DOE’s Industrial Decarbonization Roadmap, which identifies key technological pillars to reduce emissions of the highest emitting industries through innovation in American manufacturing. While the program tracker below includes select federal funding programs targeted directly at industrial decarbonization, additional federal incentives may be applied to decarbonize industry, including IRA tax credits, and funding sources with broader applicability such as the IRA Climate Pollution Reduction Grants program.
Explore by the 5 program pillars:
pillar 1
Low-Carbon Fuels, Feedstocks, and Energy Sources (LCFFES)
Substituting low-and no-carbon fuel and feedstocks reduces combustion associated emissions for industrial processes.
Decarbonization Efforts:
- Development of fuel-flexible processes
- Integration of hydrogen fuels and feedstocks into industrial applications
- The use of biofuels and bio feedstocks
Decarbonization Programs:
Regional Clean Hydrogen Hubs Program
Agency: DOE
Office: OCED
Amount: $8 billion
Purpose: Catalyze investment in the development of H2Hubs that demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen.
pillar 2
Energy Efficiency
Energy efficiency is a foundational, crosscutting decarbonization strategy and is the most cost-effective option for GHG emission reductions in the near term.
Decarbonization Efforts:
- Strategic energy management approaches to optimize performance of industrial processes at the system-level
- Systems management and optimization of thermal heat from manufacturing process heating, boiler, and combined heat and power (CHP) sources
- Smart manufacturing and advanced data analytics to increase energy productivity in manufacturing processes
Decarbonization Programs:
Industrial Efficiency and Decarbonization
Agency: DOE
Office: IEDO
Amount: $104 million
Purpose: Advance decarbonization technologies that will reduce the carbon footprint of the industrial sector, including chemicals, iron and steel, food and beverage products, cement and concrete, paper and forest products, and cross-sector decarbonization technologies.
Onsite Energy Technical Assistance Partnerships
Agency: DOE
Office: IEDO
Amount: ~$23 million
Purpose: Establish a regional network of Technical Assistance Partnerships (TAPs) to help industrial facilities and other large energy users increase the adoption of onsite energy technologies, including battery storage, combined heat and power (CHP), district energy, fuel cells, geothermal, industrial heat pumps, renewable fuels, solar photovoltaics, solar thermal, thermal storage, and wind power.
pillar 3
Industrial Electrification
Leveraging advancements in low-carbon electricity from both grid and onsite renewable generation sources will be critical to decarbonization efforts.
Decarbonization Efforts:
- Electrification of process heat using induction, radiative heating, or advanced heat pumps
- Electrification of high-temperature range processes such as those found in iron, steel, and cement making
- Replacing thermally-driven processes with electrochemical ones
Decarbonization Programs:
Clean Hydrogen Electrolysis, Manufacturing, and Recycling Program
Agency: DOE
Office: HFTO
Amount: $750 million
Purpose: Research, development, and demonstration to 1. improve the efficiency, increase the durability, and reduce the cost of producing clean hydrogen using electrolyzers to less than $2 per kilogram by 2026; 2. Advance new manufacturing technologies and techniques for clean hydrogen production and use equipment, specifically for electrolyzer and fuel cell technologies; and 3. Create innovative and practical approaches to increase the reuse and recycling of clean hydrogen and fuel cell technologies.
pillar 4
Carbon Capture, Utilization, and Storage (CCUS)
CCUS refers to the multi-component strategy of capturing generated carbon dioxide (CO2) from a point source and utilizing the captured CO2 to make value added products or storing it long-term to avoid release.
Decarbonization Efforts:
- Post-combustion chemical absorption of CO2
- Development and manufacturing optimization of advanced CO2 capture materials that improve efficiency and lower cost of capture
- Development of processes to utilize captured CO2 to manufacture new materials
Decarbonization Programs:
Regional Direct Air Capture Hubs
Agency: DOE
Office: OCED
Amount: $3.5 billion
Purpose: Contribute to the development of four regional direct air capture hubs.
Carbon Capture Demonstration Projects Program
Agency: DOE
Office: OCED
Amount: $2.5 billion
Purpose: Develop six carbon capture facilities to significantly improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of coal and natural gas use.
Carbon Capture Large-Scale Pilot Programs
Agency: DOE
Office: OCED
Amount: $937 million
Purpose: Establish a carbon capture technology program for the development of transformational technologies that will significantly improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of coal and natural gas use, including in manufacturing and industrial facilities.
Carbon Dioxide Transportation Infrastructure Finance and Innovation
Agency: DOE
Office: LPO, FECM
Amount: $2.1 billion
Purpose: Fund large-capacity common carrier CO2 transportation infrastructure projects that transport CO2 captured from anthropogenic sources and/or ambient air by pipeline, shipping, rail, or other methods for storage and/or use.
Carbon Storage Validation and Testing
Agency: DOE
Office: OCED
Amount: $2.5 billion
Purpose: Development of new or expanded commercial large-scale carbon sequestration projects and associated carbon dioxide transport infrastructure, including funding for the feasibility, site characterization, permitting, and construction stages of project development.
Carbon Management
Agency: DOE
Office: FECM
Amount: $45.5 million
Purpose: Developing lower cost, highly efficient technologies for carbon capture from power and industrial facilities that will capture CO2 for permanent geologic carbon storage or for conversion into long-lasting products like concrete, and accelerating the deployment of multi-modal transport of CO2 through the creation of transportation hubs.
pillar 5
Manufacturing Technology Innovation
Advancements in manufacturing processes, materials, and technologies are essential to helping manufacturers further optimize their energy use and reduce carbon emissions. DOE identified this 5th pillar with input from industry stakeholders after publishing their Industrial Decarbonization Roadmap.
Decarbonization Programs:
Advanced Energy Manufacturing and Recycling Grant Program
Agency: DOE
Office: MESC
Amount: $750 million
Purpose: Re-equip industrial or manufacturing facilities with equipment designed to reduce greenhouse gas emissions of that facility substantially below the greenhouse gas emissions under best practices for small- and medium-sized manufacturing firms located in communities that have experienced coal mine or coal-fired power plant unit closures.
Industrial Demonstrations Program
Agency: DOE
Office: OCED
Amount: $6.3 billion
Purpose: First- or early-of-a-kind technology demonstrations for replicable projects that can offer deep decarbonization, timeliness, market viability, and community benefits for energy-intensive industrial subsectors such as iron and steel, cement and concrete, chemicals and refining, food and beverage, paper and forest products, aluminum, other energy-intensive manufacturing industries and cross-cutting technologies.
Applied Research and Development Projects to Drive Industrial Decarbonization
Agency: DOE
Office: IEDO
Amount: $156 million
Purpose: Advance high impact applied research, development, and demonstration projects to reduce greenhouse gas emissions across the U.S. industrial sector.
