DOE allocates $5 million in funding from AIC program to bolster cleaner domestic manufacturing processes

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Jennifer M Granholm | https://www.energy.gov/person/jennifer-m-granholm

DOE allocates $5 million in funding from AIC program to bolster cleaner domestic manufacturing processes

The U.S. Department of Energy (DOE) has allocated $5.2 million from the Industrial Assessment Centers (IAC) Implementation Grants initiative to support cleaner manufacturing processes in small- and medium-sized manufacturers (SMMs) across the country. The funding aims to enhance facilities, promote energy savings, and reduce greenhouse gas emissions. This announcement is part of the Biden-Harris Administration's efforts to revitalize American manufacturing, create jobs, and work towards a net-zero economy by 2050.

According to a press release, the initial allocation of 41 implementation grants will be funded by the Bipartisan Infrastructure Law, providing $5.2 million in grants. The recipients will also contribute $11.7 million towards the projects. The funding will support various initiatives, including the installation of onsite solar, geothermal heat pumps, and biomass boilers, as well as improvements in lighting, heating, ventilation, and air conditioning systems. The electrification of industrial equipment and vehicle fleets will also be prioritized.

In addition to the current allocation, the DOE has reopened the program for new applications. Over the next year, small- and medium-sized manufacturers will have the opportunity to apply for grants from an initial funding pool of $80 million. The program will then transition to an ongoing application process.

U.S. Secretary of Energy Jennifer M. Granholm expressed the importance of supporting small- and medium-sized firms in improving energy efficiency and reducing costs and emissions. She stated, "By helping manufacturing facilities implement cost-effective decarbonization solutions, today’s announcement reinforces DOE’s efforts to strengthen American manufacturing competitiveness for generations to come while tackling the climate crisis."

The IAC Implementation Grants program offers manufacturers up to $300,000 to implement energy assessment recommendations. The program is overseen by DOE's Office of Manufacturing and Energy Supply Chains (MESC). It aims to provide critical support for decarbonization solutions that will revolutionize the country's industrial sector and enhance energy management systems.

The DOE's allocation of $5.2 million in funding and the reopening of the program for new applications will play a significant role in promoting cleaner manufacturing processes and driving the transition to a more sustainable economy.