Industry in America continues to be a massive source of carbon dioxide emissions, especially in oil-producing regions. That is why the Department of Energy has launched a revolutionary project that could change everything: they intend to allocate up to $400 million to decarbonize the most polluting regions across the country, in a clear leap into the future.
America, to make a manufacturing boom: oil and crude will be replaced
The U.S. Department of Energy recently announced a new funding opportunity worth $400 million to catalyze clean energy manufacturing and infrastructure in oil and natural gas-producing regions across the country. This initiative aims to accelerate America’s transition to a clean energy economy.
Known as the Energy Infrastructure Reinvestment Program, the funding will be awarded on a competitive basis to support the development of new solar, wind, battery storage, carbon capture, hydrogen, advanced vehicle manufacturing, and other clean energy projects.
The goal is to spur major growth in domestic clean energy manufacturing and infrastructure while also helping regions with economies tied to declining fossil fuel industries. Along these lines, many have argued that this program resembles the industrial dimension of the European Green Deal.
This oil-producing regions will be transformed
The $400 million funding opportunity aims to support communities and economies that have historically relied on fossil fuel production. Specific regions that are eligible include Appalachia, the Gulf Coast, and Alaska, not to mention the southern ones, obviously included.
Appalachia, including parts of Pennsylvania, Ohio, Kentucky, and West Virginia, was once a major coal producing area. As coal mining and power generation has declined, the region has faced economic hardship and job losses. This funding can help create new clean energy jobs and revitalize the local economy.
The Gulf Coast is home to a dense concentration of oil and gas infrastructure. States like Texas, Louisiana, Mississippi, and Alabama have economies closely tied to fossil fuel extraction and refining. Shifting these facilities to produce clean energy technologies can bring new opportunities while leveraging existing infrastructure.
Alaska is rich in oil and gas reserves, with long-standing fossil fuel industries across the state. However, climate change is visibly impacting Alaska, making diversification into renewable energy both an environmental and economic imperative. The funding aims to assist this transition for Alaska’s rural towns and cities.
These are the technologies that will replace oil in most traditional regions
Solar power is expected to be a major focus, given the abundant sunlight in many oil-producing states. Both utility-scale and distributed solar projects will be eligible. This includes manufacturing of solar panels, inverters, racking systems, and other balance of system components.
Wind power will also benefit, especially as many oil-rich states have excellent wind resources. Funding can support wind turbine manufacturing and supply chain development. Other innovative wind technologies like offshore wind and airborne wind may also qualify.
Geothermal is another technology that aligns well with oil- and gas-producing regions, given the expertise in drilling and reservoir engineering. Enhanced geothermal systems that fracture hot rock could be a particular area of focus. Conventional hydrothermal plants will also be eligible.
More nascent technologies like small energy storage, hydrogen, and carbon capture may also qualify if they aid the transition from fossil fuels. Overall, the funding aims to catalyze a diverse clean energy manufacturing base tailored to each state’s resources.
It is clear that America has just taken a step forward with one of the most ambitious proposals that, however, is not shared by any other country on the continent. The decarbonization of the oil-producing regions is so promising that many even speak of a new Industrial Revolution (although it will not be that far off). However, we will avoid several million tons of carbon dioxide, that much is clear.