US DOE Plans $5MM in Grants for Energy Upgrades at Small Factories

The United States Department of Energy (DOE) has selected 37 small- and medium-sized manufacturers (SMMs) across the country for a total grant of $5 million to implement improvements that will save energy and reduce carbon pollution at their facilities.

The funding, according to a DOE media release, is part of the Biden administration’s Investing in America agenda and will be provided through the Industrial Assessment Centers (IAC) Implementation Grants program.

The DOE reopened the program for more applications, allowing SMMs to apply for grants for another year. Nine additional assessment providers have been picked, and their eligible clients can apply for implementation grants. The IAC Implementation Grants program offers up to $300,000 per manufacturer to implement recommendations from the DOE and other qualified energy assessments.

The projects are expected to abate about 17 million pounds of carbon dioxide emissions per year, equivalent to about 1,700 gasoline-powered passenger vehicles’ annual emissions, according to the DOE.

“Under the leadership of President Biden, our nation’s manufacturing sector has added nearly 800,000 jobs and the Investing in America agenda is helping to ensure even more hardworking Americans are equipped to power the clean energy revolution”, said Secretary of Energy Jennifer M. Granholm. “The Biden-Harris Administration is setting up the clean energy workforce for success, making training opportunities more accessible all while helping reduce the harmful carbon emissions that are polluting our air”.   

In this round, 37 SMMs will receive $4.8 million in grant funding matched by $5.9 million in industry investment. The grants support projects like onsite solar, battery storage, waste heat recovery systems, lighting, HVAC improvements, industrial equipment electrification and fleets. Fourteen projects will benefit disadvantaged communities.

The DOE said that each selected project will undergo a negotiation process before the final commitment.

Beginning April 1, 2024, the IAC Implementation Grants opportunity will update its structure to allow eligible SMMs to receive up to $300,000 of funding per round, instead of per entity. SMMs that have already received $300,000 in past funding rounds can apply for additional funding to implement new projects.

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