Energy agency announces $6 billion to slash emissions in industrial facilities

FILE - This March 25, 2015, file photo shows the Kraft logo in Northfield, Ill. The Biden administration announced $6 billion in funding Monday, March 25, 2024, for projects that will slash emissions from the industrial sector — the largest-ever U.S. investment to decarbonize domestic industry to fight climate change. Kraft Heinz will install heat pumps, electric heaters and electric boilers to decarbonize food production at numerous facilities.

—Cleveland-Cliffs Steel Corporation in Middletown, Ohio will retire one blast furnace, install two electric furnaces, and use hydrogen-based ironmaking technology. The project aims to eliminate 1 million tons of greenhouse gas emissions each year from the largest supplier of steel to the U.S. automotive industry.

There are not many U.S. plants that manufacture virgin steel, and even fewer make virgin aluminum, so tackling emissions at even just a few facilities could make an outsized contribution to reducing the country’s carbon footprint, said Todd Tucker at the Roosevelt Institute, the nonprofit partner of the Franklin D. Roosevelt Presidential Library and Museum.

“Getting this off the ground with these first few projects is going to be really useful for convincing industry that this transition is possible, and also, importantly, convincing Wall Street that this transition is possible,” Tucker said. “The first trick is showing it’s viable in one project. Once you do that, then the private and public sectors can come up with strategies for the rest of the problem.

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