Contact: Ada Recinos, Temporary Deputy Press Secretary, Federal Communications, ada.recinos@sierraclub.org
WASHINGTON, D.C. – Today, the Department of Energy (DOE) announced the allocation of $6.3 billion in industrial decarbonization grants funded by the Inflation Reduction Act and Bipartisan Infrastructure Law, a significant step toward transforming heavily-emitting manufacturing sectors including aluminum and steel. Projects supporting retrofits and transformative technologies at aluminum and steel facilities in Ohio, Pennsylvania and likely Kentucky, were among the awardees.
“This important investment to clean up steel, aluminum, and other heavy emissions industries goes hand-in-hand with other climate-friendly policy measures, such as Buy Clean incentives,” said CeCe Grant, Director of Sierra Club’s Industrial Transformation Campaign. “We are excited for private industries to take a leading role in cleaning up our industrial sector and will work to ensure that fenceline communities and workers have a real seat at the table to shape the vision for a just transition.”
Cleveland-Cliffs, a major player in primary steelmaking, is set to embark on a groundbreaking venture in Ohio, envisioning a hydrogen-ready direct reduction plant. While this initiative signifies progress towards cleaner steel production, the Sierra Club underscores the importance of transitioning away from fossil fuels entirely. Another project selected by the DOE proposes to do just that by producing steel with green hydrogen without relying on other fossil fuels in the transition. This project led by SSAB in Mississippi and Iowa represents the first commercial-scale demonstration of a breakthrough technology that has been piloted in Sweden.
Similarly, Cleveland-Cliffs' plan to electrify steel manufacturing in Pennsylvania reflects a commitment to sustainability. By replacing gas-fired furnaces with electric ones, the project aligns with clean energy objectives, albeit with the imperative of sourcing electricity responsibly. This project will furthermore cleanly manufacture key metals necessary for the clean energy transition.
"A robust clean energy economy is good for Pennsylvania families, workers, and our environment, and thanks to this Inflation Reduction Act grant, we're seeing these benefits first-hand,” said Tom Schuster, Sierra Club Pennsylvania Chapter director. “If we're going to tackle the climate crisis here in Pennsylvania, we must do so by not only creating long-term family-sustaining clean energy jobs like the ones at Butler Works but also by ensuring that this facility and every facility across the state is powered by clean energy. Together with meaningful solutions like Governor Shaprio's Pennsylvania Reliable Energy Sustainability Standard, the Industrial Demonstrations Program will help us on our way to achieving those goals."
Among the standout proposals is Century Aluminum's endeavor to establish an aluminum smelter, likely in Kentucky, that is powered by renewable energy. This site would be the first new primary aluminum production facility built in the United States since 1980. This initiative not only promises over 1,000 permanent new jobs represented by the United Steelworkers, but also underscores the potential for renewable energy integration in heavy industry.
The Sierra Club emphasizes the indispensable role of community engagement in shaping the trajectory of industrial development. Leveraging DOE's commitment to prioritize public health concerns, communities adjacent to industrial sites have been empowered to evaluate proposed projects' local benefits. Through the Community Benefits Plan (CBP), stakeholders are encouraged to ensure that industrial decarbonization initiatives translate into tangible advantages for communities.
About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.