Industrial Demonstrations Program

Program Overview 

     On Wednesday (March 8), the Biden-Harris Administration, through the U.S. Department of Energy’s Office of Clean Energy Demonstrations, announced $6.3 billion in competitive funding under the Industrial Demonstrations Program. Funded by President Biden’s Bipartisan Infrastructure Law ($430 million) and Inflation Reduction Act ($5.46 billion), the Industrial Demonstrations Program aims to accelerate decarbonization projects in the industrial energy sector. When combined with private sector cost share, the funding opportunity represents more than $12 billion to generate “high-impact, large-scale, transformational advanced industrial facilities” that will significantly reduce industrial greenhouse gas (GHG) emissions domestically. In addition to modernizing infrastructure, these BIL and IRA investments will support efforts to build a clean and equitable energy economy that achieves a zero-carbon electricity system by 2035 and to put the U.S. on a path to achieve net-zero emissions economy-wide by 2050. 

     The program prioritizes decarbonization projects in the highest emitting industries to support the overall transition to clean energy. High-emitting industries of interest to the program include iron and steel, cement and concrete, chemicals and refining, food and beverage, paper and forest products, aluminum, and other energy-intensive manufacturing industries and/or cross-cutting technologies. There are three topic areas included in this FOA (see below for more information). Each award will be made under one of the three Topic Areas.  

Topic Area 1: Near-NetZero Facility Build Projects

Funding Provision: BIL Section 41008

Expected Number of Awards: 2-5 

Technology Readiness Level: 7-9 

Award Duration: 8-12 years 

Federal Funding per Award: $100M - $250M 

Description: World-leading, first- or early-of-a-kind, full facility builds resulting in significant emissions reductions up to net-zero operations

Topic Area 2: Facility-level Large Installations and Overhaul Retrofit Demonstrations

Funding Provision: IRA Section 50161

Expected Number of Awards: 10-30 

Technology Readiness Level: 7-9 

Award Duration: 3-7 years 

Federal Funding per Award: $75M - $500M 

Description: Large-scale overhauls for existing facilities, common technologies across multiple facilities, or new builds with accelerated planning, development, permitting, and financing strategies 

Topic Area 3: System Upgrades and Retrofits for Critical Unit Operations or Single Process Lines Within Existing Facilities

Funding Provision: IRA Section 50161

Expected Number of Awards: 10-30  

Technology Readiness Level: 7-9 

Award Duration: 3-7 years 

Federal Funding per Award: $35M - $75M 

Description: Upgrades, retrofits, and operational improvements that target decarbonization within a unit operation or process line at an existing facility. 

     Additionally, the Department is seeking “first- or early-of-a-kind" commercial-scale projects, which could include projects with pilot-scale technologies not yet commercially available, technology used internationally but not deployed domestically, or projects that face market or adoption risks. For projects selected under this FOA, DOE will establish a four-phase structure:

Phase 1 - initial planning and analysis activities to ensure that the overall concept is technologically and financially viable.

Phase 2 - finalize engineering designs and business development, site access, labor agreements, NEPA review, permitting, and offtake agreements.

Phase 3 - installation, integration, and construction activities.

Phase 4 - full operations including data collection to analyze the plant’s operations, performance, and financial viability.

Topic Areas & Goals

Goals for all proposals are as follows: 

• Deep decarbonization, by demonstrating significantly less carbon-intensive industrial production processes leading to materials that can be labeled as having substantially lower levels of embodied greenhouse gas emissions; 

• Timeliness, through rapid technology demonstrations that can address emissions in the near-term, meet funding horizons, and be replicated by fast followers; 

• Market viability, with technological approaches designed to spur follow-on investments for widespread decarbonization as well as partnerships between buyers and sellers of the materials produced, with special consideration given to industries that are focusing on shifting entire ecosystems and enabling new market structures for low-carbon products; and 

• Community benefits, tailored through substantial engagement with local and regional stakeholders, as well as labor unions and Tribal Nations across the project lifecycle, supporting environmental justice and economic opportunity for local communities. 

All applicants are expected to propose projects that will:  

• Reduce GHG emissions at the eligible facility and contribute to the acceleration of industry toward net-zero GHG emissions by 2050;  

• Demonstrate favorable technical and economic feasibilities and its potential for timely replicability in other facilities;  

• Offer potential for financial and market viability for the clean products, with priority for partnerships with clean product purchasers;  

• Provide the greatest good for the greatest number of people in its surrounding communities, including through the reduction of other pollutants and waste streams;  

• Support the creation and retention of good-paying, stable industrial sector jobs that will support broadly shared prosperity in the communities in which the facilities are located; and  

• Contribute to energy and national security by, for example, reducing dependence on foreign products or positioning U.S. industry for long-term competitiveness. 

Eligibility    

Eligible applicants are as follows: 

Eligibility for Topic Area 1 is restricted to private entities that are for-profit organizations. For-profit organizations are considered best aligned and most capable of supporting the objectives of this topic area. 

Eligibility for Topic Areas 2 and 3 are domestic, non-federal, non-power industrial or manufacturing facilities engaged in energy intensive industrial processes, including production processes for the industries.  

NOTE: Other types of entities will likely be necessary partners to support projects and overall programs. Entities that are eligible as sub-recipients or that can be contracted under this FOA include but are not limited to: Scientist or other individual with knowledge and expertise in emissions reduction; an institution of higher education; Nongovernmental organization; National Laboratory; Private entity; and Partnership or consortium of 2 or more eligible entities.   

Cost Sharing: Required 50% minimum of the total project costs.

Concept Paper: Required to be eligible to submit a Full Application.

Key Dates

Deadline for Concept Papers: 04/21/2023, 5:00pm ET  

Informational Webinar: 05/2023 (Date and Time TBD) 

Submission Deadline for Applications: 08/04/2023, 5:00pm ET 

Pre-Selection Interviews: Fall 2023 

Expected Date(s) for Selection Notifications: Winter 2023/24 

Resources: 

View the Opportunity here. 

Register for the Webinar here. 

Read the Press release here.