By Steven Nadel, Executive Director
As Congress prepares its budget reconciliation package, one of the most effective ways it can reduce the large greenhouse gas (GHG) emissions from the industrial sector is by supporting commercialization of transformative industrial technologies.
The federal government has funded research, development, and demonstration projects for some of the critical technologies. However, these projects do not frequently reach commercial-scale deployment because potential investors often consider initial deployments, which can cost $1 billion or more, too high risk. Federal co-funding could address this challenge, accelerating adoption of these technologies.
An ACEEE policy brief released today proposes federal co-funding for the first three installations at production scale of new technologies that decarbonize industrial processes. Legislation to establish a program along these lines was introduced Friday by Rep. Kathy Castor, the chair of the House Select Committee on the Climate Crisis.
We rallied environmental, industry, and labor stakeholders this week to call on Congress to include this proposal and other industrial decarbonization investments in the budget reconciliation bill this fall.
Under our plan, factory owners, technology providers, and other partners would work together to submit proposals for cost-sharing of the first, second, or third applications of new transformative industrial technologies. The Department of Energy would then select the proposals that would best maximize long-term GHG reductions for co-funding. The maximum grant would be 60% of the total cost for the first application of a new technology, 45% for the second application, and 30% for the third…
To continue reading the blog post, visit: https://www2.aceee.org/e/310911/carbon-industrial-technologies/2jgflc3/902165582?h=b_n8CEABC_nPhl0DWTCUj2-IJ5EqD5F4x4xzNG9i9ec.