The $10 Billion Cleantech Financing Spree
July -> August, 2024
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What 👏 A 👏 Month 👏 July has been at the intersection of clean tech, politics, and policy!
The government announced more than $10 billion 🤯 of grants and loans for climate and clean tech financing this month. In dollar terms, the funding was led by EPA’s $4.3 billion of Inflation Reduction Act -backed Climate Pollution Reduction Grants. The CPRG will fund projects across several sectors, including:
🚗 $1.18 billion for transportation: deploying charging infrastructure, electric vehicles, trucks, and locomotives
⚡️ $372 million for the power sector including incentives to deploy renewables
🏢 $1.06 for buildings: energy efficiency and deploying 580k heat pumps
🏭 $636 million for industrial decarbonization and reducing methane emissions from coal mines and gas production, and
🚜 $931 million for agriculture, nature and working lands.
It was also a noteworthy month for government CleanTech financing in the hydrogen sector, where DOE announced $87.5 million of funding for the first three Clean Hydrogen Hubs, the initial down payments of the larger $8 billion program funded through the Bipartisan Infrastructure Law. The Hydrogen Hub funding rides a growing trend of DOE financing for the hydrogen sector. FY 2024 funding has already hit $176 million, surpassing the record $139.7 million DOE invested in 2023, with a lot more anticipated prior to the FY close on September 30.
DOE Hydrogen Funding: FY 2021-2024
Source: USASpending.gov
But the well isn’t dry and there’s still plenty of CleanTech public financing on the way, with the government announcing more than $600 million of new funding opportunities this month alone. Check out “July’s Opportunities” for details.
There’s lots happening in the world of CleanTech policy, too. Treasury and the IRS issued proposed rules on the IRA’s Tech Neutral Tax Credits. Comments are due on August 2, with public hearings scheduled for August 12-13. We have more on why it matters in the “engage in the debate” section.
In trade news, the DHS updated its strategy for enforcing the Uyghur Forced Labor Prevention Act, and added Aluminum to the list of sectors for high priority enforcement. Importers and project developers will be tracing their supply chains to ensure that they’re in compliance. In other trade news, comments poured in to the USTR Federal Register Notice on new 301 tariffs on Chinese imports, particularly in the clean tech sector (batteries, solar, EVs, and critical minerals like graphite in particular).
Oh, and former President Trump survived an Assassination attempt, named J.D. Vance as his running mate, and held the Republican Convention; while President Biden announced he would not seek reelection with Vice President Kamala Harris becoming the presumptive nominee for the Democratic Party. Go to “In the News” for the CleanTech implications and more of what we’re reading.
Government Financing: July’s Awards
A whopping $10 billion 🤯 in grants and loan conditional commitment financing was announced in July. This is a massive investment in U.S. companies, states, and cities to develop and deploy across clean tech sectors and their associated supply chains.
☀️ DOE Loan Programs Office (LPO): $861.3 million Conditional Commitment to Clean Flexible Energy, LLC (JV between AES and TotalEnergies Holdings USA, Inc.) for Puerto Rico utility scale solar plus storage project.
🔋 DOE LPO: $1.2 billion Conditional Commitment to ENTEK to build a plant in Indiana to manufacture separator for lithium ion batteries.
♻️ DOE LPO: $182.6 million Conditional Commitment to IRG Erie for a plastic recycling plant in Pennsylvania.
🚗 DOE Office of Manufacturing and Energy Supply Chains (MESC): $1.7 billion to Cummins, Fiat-Chrysler, General Motors, Harley Davidson and others to convert shuttered or at-risk auto manufacturing and assembly facilities in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia to manufacture electric vehicles and their supply chain.
🔋 DOE MESC: $14 million to Batteries Plus and Staples to establish battery collection and recycling programs
Ⓗ DOE’s Office of Clean Energy Deployment (OCED): awarded the California Hydrogen Hub—led by the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES)—with $30 million for the first tranche of funding out of the total project federal cost share of up to $1.2 billion.
Ⓗ DOE OCED: $27.5 million to the Pacific Northwest Hydrogen Hub for the first tranche of funding out of the total project federal cost share of up to $1 billion. The hub will be comprised of locations in Montana, Oregon, and Washington State. Participating companies include Fortescue Future Industries, ALA Renewable Energy LLC, HTEC Hydrogen Technology & Energy Corporation, Air Liquide, Atlas Agro, Express Ranch Hydrogen, MHI Hydrogen Infrastructure, Williams Field Services Group, Portland General Electric, and St. Regis Solar, among others.
Ⓗ DOE OCED: $30 million to the Appalachian Regional Clean Hydrogen Hub (ARCH2) for the first tranche of funding out of the total project federal cost share of up to $925 million. The hub will be comprised of locations in Ohio, Pennsylvania, and West Virginia. Participating companies include EQT, Fidelis New Energy, Hog Lick Aggregates, Hope Gas, WATT, Independence Hydrogen, KeyState Energy, and Plug Power.
🔋 DOE OCED: $8.4 million in awards under the Long Duration Energy Storage Demonstrations Program:
$7 million to Alliant Energy to begin Phase 1 of its compressed carbon dioxide long duration energy storage system in Wisconsin. The innovative technology was designed by was designed by Energy Dome and the $7 million is the first tranche in up to $30 million of federal cost share.
$1 million of a federal cost share of up to $10 million to ReJoule’s Communities Accessing Resilient Energy Storage project. The demos will be located in California, Minnesota, and New Mexico and will repurpose lithium-ion batteries from EVs to build modular energy storage systems for behind-the-meter microgrid installations.
$400k to Front-of-the-meter Utilization of Zinc Bromide Energy Storage (FUZES) , led by NextEra Energy Resources Development, LLC, (of the total project federal cost share of up to $49.1 million) to begin Phase 1 of the project plan to develop, build, and operate zinc-bromide battery energy storage systems at project sites in North Dakota, Oregon, and Wisconsin.
🪨 DOE Office of Fossil Energy and Carbon Management (FECM): $10 million for projects in California and Utah to produce rare earth elements and other critical minerals and materials from coal, coal wastes, and coal by-products.
⚡️ DOE Office of Electricity (OE): Announced phase 1 winners of the American-Made Digitizing Utilities Prize. The prize connects utilities with interdisciplinary teams of software developers and data experts to transform energy sector digital systems through data analytics, processing, quality assurance, storage, and deletion.
⚡️ DOE OE: $7.5 million in funding for data analytics and sensor technologies to advance grid reliability and resilience.
⚡️ DOE Office of Energy Efficiency and Renewable Energy (EERE): $52 million across 229 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards in 39 states
⚡️ DOE Grid Deployment Office (GDO): $371 million for 20 projects in 16 states to support grid expansion, accelerate permitting, and establish community infrastructure.
⚡️ Environmental Protection Agency (EPA): $4.3 billion in grants for projects in 30 states to implement climate, clean energy, and environmental justice programs in the buildings, electric, industrial, and transportation sectors.
🏭 EPA: $160 million in grants to support clean manufacturing of steel and other construction materials. Organizations selected for funding include Aluminum Extruders Council, Building Materials Re-Use Association, Heidelberg Materials US, National Asphalt Pavement Association, National Glass Association, National Ready-Mixed Concrete Association, and National Stone, Sand & Gravel Association.
Government Financing: July’s Opportunities
The Federal Government announced more than $600 million in new funding opportunities across several sectors, including renewables, batteries, nuclear, smart manufacturing and biotech
☀️🔋 DOE GDO: Notice of Intent for a Funding Opportunity Announcement for $325 for solar + battery storage for community healthcare facilities, community centers, and common areas in subsidized multi-family housing properties.
🔋 DOE OCED: Notice of Intent for a Funding Opportunity Announcement for $100 million in long duration energy storage pilot program awards.
☢️ DOE Advanced Research Projects Agency - Energy (ARPA-E): $40 Million FOA for technologies around used nuclear fuel
🌽 DOE ARPA-E: $36 million FOA for technologies to reduce ethanol GHG emissions
🔋 DOE Office of Electricity: Applications for two vouchers totaling $1 million in OE technical assistance with LDES project deployments.
🏭 DOE EERE: $33 million for Smart Manufacturing for a Circular Economy, Sustainable Transportation, High-Performance Materials, and Domestic Mining
⚡️ DOE EERE: Up to $65 million in a FOA for “Connected Communities 2.0” to drive innovation to manage growing building, transportation, and industrial electric loads on the grid.
⛽️ DOE FECM: FOA for Undocumented Orphaned Well Characterization and Remediation
🌽 DOD Defense Advanced Research Projects Agency: A new biomanufacturing program to replace pet-chem manufacturing feedstocks
Engage in the Debate
⚡️ Written comments on the IRA’s Tech Neutral Tax Credits (45Y and 48E) are due on August 2, 2024. A public hearing on the proposed regs is scheduled for August 12, and a telephone only hearing will take place on August 13.
Why it matters: 45Y and 48E are seen as the clean energy workhorses of the IRA, potentially delivering the largest share of emissions reductions under the law. Among other issues, stakeholders submitting comment will have the opportunity to opine on which technologies qualify as zero GHG emissions and are eligible for the tax credits.
🏢 DOE issued a Request for Information (RFI) on the definition of zero emissions buildings
Why it matters: A standardized definition will send an important market signal that could eventually be used to help move the building sector to zero emissions.
In the News
Biden Tariffs Spark Fight over EV Battery Costs
Biden’s Exit puts Spotlight on Harris Energy Record
Greens Praise Biden, Start Lining up Behind Harris
How J.D. Vance Stacks up on Energy, Environment Issues
What is Project 2025? A look at the conservative presidential wish list
Meet Kamala Harris’ Go-To-Guy on Climate
Advance Act Strikes Right Balance for Nuclear Energy Regulation
Lawmakers push NRC on Implementing new Law
Connecticut AG sues Solar Companies for Deceptive Sales Tactic
Warner, Rubio Introduce Bipartisan Legislation to Ensure Diverse, Secure Supply of Critical Minerals
Aluminum added as High Priority Sector in Updated UFLPA Strategy
