DE-FOA-0003363 RFI Transforming Industry_MOD0001.pdf

EERE T 540.111 02: Request for Information (RFI)

Request for Information: Transforming Industry: Strategies for Decarbonization

DATE: May 14, 2024 SUBJECT: Request for Information (RFI)

Description This is a Request for Information (RFI) issued by the U.S. Department of Energy’s (DOE) Industrial Efficiency and Decarbonization Office (IEDO). The intent of this RFI is to obtain information to inform a new DOE vision study, Pathways for U.S. Industrial Transformations:

Unlocking American Innovation, which is identifying cost-effective and industry-specific strategic pathways to achieve a thriving U.S. industrial sector with net-zero greenhouse gas (GHG) emissions by 2050.

This RFI seeks input on four categories: Category 1: Industrial Decarbonization Challenges, Barriers, and Cross-Cutting Strategies; Category 2: Framework for Industrial Decarbonization Pathways; Category 3: Impacts and Evaluation Criteria for Industrial Decarbonization Pathways;

and Category 4: Net-zero Decarbonization Pathways for Specific Industrial Subsectors.

This RFI is focused on input on industrial technological, financial, social, environmental, and health aspects as they pertain to the challenges, barriers, opportunities, and pathways to achieve net-zero emissions from the industrial sector by 2050. IEDO seeks input from a diverse group of stakeholders (both within and outside of industry) who will be integral to the transformation of U.S. industry, including associated communities, utilities, low-carbon fuels suppliers, technology developers, engineering consultants, firms designing new facilities, local and regional governments, and more.

Context for this request is provided in the Background section directly below; the categories and questions start on page 10.

Background This Request for Information (RFI) is issued by the U.S. Department of Energy’s (DOE) Industrial Efficiency and Decarbonization Office (IEDO). IEDO provides funding, management, and the strategic direction necessary for a balanced national program of research, development, and demonstration (RD&D), as well as technical assistance and workforce development, to drive energy, materials, and production efficiency improvements and to accelerate industrial

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

decarbonization.1 IEDO and its programs are critical to putting the nation on a pathway to net-zero GHG emissions by 2050.

The Challenge As highlighted by the United Nations Environment Programme (UNEP), we are no longer facing a question on whether a global sustainable resource consumption and production transformation2 is necessary, but rather how do we make it happen now. Decarbonization is imperative for that transformation, and the 2021 U.S. Long-Term Strategy provides a national-level approach to net-zero GHG emissions economy wide by no later than 2050.3 The U.S.

industrial sector can play a lead role in this global transformation while thriving, innovating, and competing globally. Technological transitions must address GHG emissions and enable progress towards economic, national security, environmental, public health, and societal goals. As demand for clean materials and products increases, the United States has an opportunity to lead in the clean energy economy.

Due to the diversity and complexity of energy inputs, processes, and operations, the industrial sector is considered one of the most difficult to decarbonize. Approximately 38% of total U.S.

economy emissions are attributable to the U.S. industrial sector (both energy-related and non-energy-related Scope 1 and Scope 2) as shown in Figure 1. Moreover, under business-as-usual operations, industrial sector energy consumption is projected to grow 30% by 2050, resulting in a 17% increase in energy-related carbon dioxide emissions.4 Achieving net-zero GHG emissions across the U.S. economy by 2050 will require an accelerated, multidimensional approach to eliminate net industrial emissions. DOE estimates that more than 60% of heavy industry emissions reductions needed to achieve net-zero by 2050 will come from technologies that are still in the innovation pipeline and are not currently market ready.5 We recognize this will be a challenge –which is why IEDO is leading a new DOE-wide vision study, Pathways for U.S.

Industrial Transformations: Unlocking American Innovation, informed by stakeholder input from within and adjacent to the industrial sector.

1 The industrial sector is defined as the manufacturing subsector, the nonmanufacturing subsectors (agriculture and forestry; mining, oil, and gas; and construction), data centers, and water and wastewater treatment.

2 In the Global Resources Outlook 2024, UNEP defines transformation as an “overall change or outcome of large-scale shifts in technological, economic and social systems.” The transformation from a resource-intensive production paradigm to a sustainable one will require a decoupling of wellbeing and economic activity from resource use and environmental impacts 3 United States Department of State and the United States Executive Office of the President. 2021. The Long-Term Strategy of the United States: Pathways to Net-Zero Greenhouse Gas Emissions by 2050.

4 Annual Energy Outlook 2021 | U.S. Energy Information Administration 5 The Pathway to: Industrial Decarbonization Commercial Liftoff Report | Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.resourcepanel.org/reports/global-resources-outlook-2024 https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf https://www.eia.gov/outlooks/aeo/tables_side.php https://liftoff.energy.gov/industrial-decarbonization/overview/

Figure 1. U.S. GHG emissions in 2018 by economic sector (left pie chart) and a breakout by industrial subsector (right bar chart). The carbon dioxide (CO2)-equivalent emissions in million metric tons (MMT CO2e) are shown, as well as the percent contribution of that sector to the whole economy. Both Scope 1 (from onsite combustion and process-generated non-energy) and Scope 2 (from consumption of offsite-generated electricity) emissions are included. Data compiled from multiple EIA and EPA sources: EIA Monthly Energy Review,6 EIA Manufacturing Energy Consumption Survey,7 EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks,8 DOE IEDO EEIO-IDA Tool.9 Note the large amount of non-energy emissions in the Farms subsector is due to multiple factors, including from the application of fertilizers, livestock, manure, and other factors.10

Industrial facilities are located across the country, affecting over 2,500 communities. These operations can produce significant amounts of energy- and non-energy-related GHG emissions, as well as air pollutants with harmful impacts on respiratory and cardiovascular health, including nitrogen oxides (NOx), carbon monoxide (CO), and particulate matter (PM). In the United States, disadvantaged communities are disproportionately exposed to these types of emissions, resulting in social, economic, and health burdens beyond those of the general population. Many of our country’s industrial facilities are located in communities designated as Disadvantaged Communities, who both bear the brunt of the pollution burden that these

6 Monthly Energy Review | U.S. Energy Information Administration, Tables 11.1 through 11.5.

7 Manufacturing Energy Consumption Survey | U.S. Energy Information Administration 8 Inventory of U.S. Greenhouse Gas Emissions and Sinks | U.S. Environmental Protection Agency 9 Environmentally Extended Input-Output for Industrial Decarbonization Analysis (EEIO-IDA) Tool | U.S.

Department of Energy 10 U.S. Environmental Protection Agency - Sources of Greenhouse Gas Emissions

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.eia.gov/totalenergy/data/monthly/index.php https://www.eia.gov/consumption/manufacturing/ https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks https://www.energy.gov/eere/iedo/articles/environmentally-extended-input-output-industrial-decarbonization-analysis-eeio https://www.energy.gov/eere/iedo/articles/environmentally-extended-input-output-industrial-decarbonization-analysis-eeio https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions#agriculture https://factors.10 facilities often generate today and stand to benefit most from the economic revitalization and reduced pollution that a just transition to clean manufacturing can provide.11

Building Off Previous Work This vision study builds off significant prior research and stakeholder engagement. The 2022 Industrial Decarbonization Roadmap12 continues to provide the framework for DOE’s industrial decarbonization strategy and outlines technology opportunities and potential challenges for five major manufacturing subsectors (cement, chemicals, food and beverage, iron and steel, and petroleum refining). The Roadmap characterizes technology opportunities in the context of four industrial decarbonization pillars shown in Figure 2, which highlight the need for both cross-cutting technologies and systems solutions. This follow-on industrial decarbonization study extends and expands upon the Roadmap sectoral analysis, and also expands the cross-sectoral and cross-cutting systems-wide assessments.

Figure 2. Pillars of industrial decarbonization from the Industrial Decarbonization Roadmap13

Continuing its lead role from the Roadmap, IEDO is leading subsector deep-dives to assess technology-specific impact and sensitivity modeling and analysis. This vision study looks beyond the original five Roadmap manufacturing subsectors by also including both energy-related and non-energy-related (e.g., process) emissions, material efficiency considerations, the pulp and paper subsector, and the decarbonization impacts on the rest of industry (other manufacturing subsectors; the non-manufacturing subsectors of agriculture and forestry, mining, oil, and gas, and construction; data centers; and water and wastewater treatment).

In addition to the Roadmap, DOE’s Pathways to Commercial Liftoff reports14 provide public and private sector capital allocators with a perspective as to how and when various technologies

11 Justice40 Initiative | U.S. Department of Energy 12 Industrial Decarbonization Roadmap | Department of Energy 13 Ibid.

14 Pathways to Commercial Liftoff | Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/justice/justice40-initiative https://www.energy.gov/industrial-technologies/doe-industrial-decarbonization-roadmap https://liftoff.energy.gov/ https://provide.11 could reach full-scale commercial adoption, including specific reports focused on industrial decarbonization, hydrogen, and carbon management, among others.

Other industrial decarbonization-related strategies and roadmaps from DOE include the U.S.

National Clean Hydrogen Strategy and Roadmap, 15 Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector,16 and the U.S. National Blueprint for Transportation Decarbonization.17 This new vision study also leverages the insights from recent Funding Opportunities, other Requests for Information (including FECM’s RFI on Industrial Deployment and Demonstration Opportunities for Carbon Capture Technologies18), industry and stakeholder convenings, and IEDO’s robust suite of technical assistance programs, including the Better Climate Challenge, Better Plants, and Onsite Energy Technical Assistance Partnerships.19 These roadmaps and blueprints collectively inform DOE’s cross-office strategy in context with technology maturity and stage of investment.

This prior work indicates that incremental improvements in existing industrial processes will not put U.S. industry on a path to net-zero GHG emissions by 2050. The transformative, systemic challenge of industrial decarbonization will require a holistic broader industrial ecosystem viewpoint. The interconnection of materials, energy, and resources through value chains is complex, and sophisticated analytical frameworks and data-driven approaches to assess the net impacts of technological changes will be necessary.20 Building these strategies within this complex ecosystem requires identification of the specific, most likely potential pathways towards decarbonization.

Pathways

15 U.S. National Clean Hydrogen Strategy and Roadmap | Department of Energy 16 Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector | Department of Energy 17 The U.S. National Blueprint for Transportation Decarbonization: A Joint Strategy to Transform Transportation | Department of Energy 18 Request for Information: Industrial Deployment and Demonstration Opportunities for Carbon Capture Technologies | Department of Energy 19 DOE IEDO’s Technical Assistance and Workforce Development Programs 20 There are a range of materials flow analysis (MFA), life cycle analysis (LCA) and technoeconomic analysis (TEA) techniques that can be used; DOE has training, tools and methodologies available that can be applied based on need; see, for example: https://www.energy.gov/eere/iedo/life-cycle-assessment-and-techno-economic-analysis-training; https://www.netl.doe.gov/LCA; https://www.energy.gov/eere/greet; https://mfitool.nrel.gov/about

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.hydrogen.energy.gov/home/u.s.-national-clean-hydrogen-strategy-and-roadmap https://www.energy.gov/eere/decarbonizing-us-economy-2050-national-blueprint-buildings-sector https://www.energy.gov/eere/us-national-blueprint-transportation-decarbonization-joint-strategy-transform-transportation https://www.energy.gov/eere/us-national-blueprint-transportation-decarbonization-joint-strategy-transform-transportation https://www.energy.gov/fecm/request-information-industrial-deployment-and-demonstration-opportunities-carbon-capture https://www.energy.gov/fecm/request-information-industrial-deployment-and-demonstration-opportunities-carbon-capture https://www.energy.gov/eere/iedo/technical-assistance-and-workforce-development https://www.energy.gov/eere/iedo/life-cycle-assessment-and-techno-economic-analysis-training https://www.energy.gov/eere/iedo/life-cycle-assessment-and-techno-economic-analysis-training https://www.netl.doe.gov/LCA https://www.energy.gov/eere/greet https://mfitool.nrel.gov/about https://mfitool.nrel.gov/about https://www.energy.gov/eere/greet https://www.netl.doe.gov/LCA https://www.energy.gov/eere/iedo/life-cycle-assessment-and-techno-economic-analysis https://necessary.20 https://Partnerships.19 https://Decarbonization.17

The use of the term “pathways” is at the heart of this new vision study. There is no single pathway to net-zero emissions that will work for any single industrial subsector. Indeed, competition across different possible pathways will be essential to our success. This vision study seeks to refine and improve our understanding of potential pathways, including considering the following:

• Major production routes for each industrial subsector

Net-Zero Emissions Pathway As defined in the Industrial Decarbonization Roadmap, a pathway is a set of specific actions needed to achieve progress in and across the decarbonization pillars, while remaining informed and supplemented by RD&D to advance viable solutions (i.e., technologies, practices, approaches, behaviors) that will need to be adopted at scale in the marketplace.

• Major decision-points that might shape each pathway, relative timing between now and

2050 for these decision-points, and what information will be needed for those decision-points

• Primary factors that might determine how much of a subsector would choose an individual production route or technology

• Major similarities and differences in technologies and solutions across the major pathways and production routes

• What investments could be made in parallel and are no-regrets strategies, and where are the potential risks for creating stranded assets

• Portion of each pathway that can be achieved through enhancements to existing facilities vs. construction of new facilities

• Major barriers to successful development and accelerated deployment of key technologies and solutions within each pathway

• Major uncertainties across each pathway

• Economic, environmental, and social impacts of each pathway.

An All-Hands-on-Deck Approach DOE is committed to pushing the frontiers of science and engineering, catalyzing clean energy jobs through research, development, demonstration, and deployment (RDD&D), and ensuring environmental justice and inclusion of underserved communities. To accelerate the development of emerging industrial decarbonization technologies, DOE created the Technologies for Industrial Emissions Reduction Development (TIEReD) Program.21 This program leverages resources across DOE applied research offices to invest in fundamental science, research, development, initial pilot-scale demonstrations projects, and technical assistance and workforce development. Rooted in the principles identified in the 2022

21 Decarbonizing America's Industrial Sector | U.S. Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/sites/default/files/2023-03/Decarbonizing%20America%27s%20Industrial%20Sector%20Fact%20Sheet.pdf https://www.energy.gov/industrial-technologies/doe-industrial-decarbonization-roadmap https://www.energy.gov/industrial-technologies/doe-industrial-decarbonization-roadmap https://Program.21

Industrial Decarbonization Roadmap, 22 DOE is building an innovation pipeline to accelerate the development and adoption of industrial decarbonization technologies.

The TIEReD Program leverages resources, expertise, and investments from across DOE’s Science and Innovation Portfolio. In 2022, we created the Industrial Efficiency and Decarbonization Office (IEDO) as DOE’s first office to be solely focused on industrial efficiency and decarbonization. The structure of IEDO’s RDD&D and Technical Assistance portfolio is directly modelled after the framework established with the 2022 Industrial Decarbonization Roadmap, 23 with a primary focus on major energy and emissions intensive subsectors and cross-cutting decarbonization technologies. Within IEDO, we have consolidated Science and Innovation investments in industrial energy efficiency and electrification.

IEDO and the Office of Fossil Energy and Carbon Management (FECM) partner on carbon capture and utilization investments. For the supply and utilization of low-carbon fuels, feedstocks, and energy sources, we combine investments from several offices: IEDO, Bioenergy Technologies Office (BETO), Hydrogen and Fuel Cell Technologies Office (HFTO), Solar Energy Technologies Office (SETO), and the Office of Nuclear Energy (NE). In addition, both our Advanced Materials and Manufacturing Technologies Office (AMMTO) and Office of Science (SC) invest in the foundational materials and manufacturing technologies required for the other industrial decarbonization pillars to be successful. ARPA-E supports all pillars by investing in high-potential, high-impact technologies that are too early for private-sector investment. The annual investments across these Science and Innovation offices total roughly $1 billion funded through annual appropriations from Congress.

The TIEReD program complements the demonstration and large-scale deployment efforts led by the DOE Office of Clean Energy Demonstrations (OCED), the Office of Manufacturing and Energy Supply Chains (MESC), and the Loan Programs Office (LPO). OCED led the selection and is leading the oversight of $6 billion for 33 projects across more than 20 states to decarbonize energy-intensive industries.24 These projects were funded by $489 million from the Bipartisan Infrastructure Law and $5.47 billion from the Inflation Reduction Act. In addition, OCED currently invests $20 million in annual appropriations to support large industrial decarbonization demonstrations. MESC leads the Industrial Assessment Centers ($550 million from the Bipartisan Infrastructure Law and $16 million in ongoing annual appropriations)25 and the Advanced Energy Manufacturing and Recycling Grant Program for facilities in communities

22 Industrial Decarbonization Roadmap | U.S. Department of Energy 23 Ibid.

24 Industrial Demonstrations Program Selections | Department of Energy 25 Industrial Assessment Centers | Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/industrial-technologies/doe-industrial-decarbonization-roadmap https://www.energy.gov/articles/biden-harris-administration-announces-6-billion-transform-americas-industrial-sector https://www.energy.gov/mesc/industrial-assessment-centers-iacs https://industries.24 where coal mines or coal power plants have closed ($750 million from the Bipartisan Infrastructure Law).26

The relationship and connections between these Offices to holistically address the full risk profiles of advancing technologies, from initial discovery to widespread deployment, are shown in Figure 3 below.

Figure 3. DOE’s offices strategically coordinate investments across risk profiles for technology development

This vision study involves collaboration across the Federal government, including with the Environmental Protection Agency, the U.S. Department of Commerce, the National Institute of Standards and Technologies, the General Services Administration, the U.S. Department of Transportation, the U.S. Department of Homeland Security, the National Aeronautics and Space Administration, the U.S. Department of Agriculture, the U.S. Department of Defense, the U.S.

Department of the Interior, and several White House Offices including the Climate Policy Office, Office of Science and Technology Policy, the National Economic Council, and Council on Environmental Quality. DOE will also seek input on this vision study from states, territories, local authorities, and Tribes.

26 Advanced Energy Manufacturing and Recycling Grant Program | Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/mesc/advanced-energy-manufacturing-and-recycling-grant

The shift towards net-zero GHG emissions by 2050 will require substantial investment from industry, alongside crucial government support. Decarbonizing industrial processes requires significant upfront costs for adopting advanced technologies and sustainable practices. At the same time, because the U.S. industrial ecosystem crosses borders and the industrial emissions can be shifted between countries, its global emissions contributions can appear artificially lower due to the import of high embodied carbon products or limited circular feedstocks. To discourage offshoring industrial emissions and supply chains, any decarbonization strategy must strengthen U.S. industry, ensuring it is globally and domestically competitive. Also, a strategy should position the United States for global leadership on industrial decarbonization technology and products. DOE can support industrial transformations through financial incentives, public-private partnerships, grants, and regulatory frameworks to mitigate financial burdens on industries, ensuring a smoother transition towards a sustainable future.

Industrial decarbonization also provides an opportunity to advance U.S. manufacturing competitiveness. Manufacturing innovations will position the United States as a leader in the production of clean energy technologies. As envisioned in the White House Office of Science and Technology Policy 2022 National Strategy for Advanced Manufacturing, U.S. manufacturing can positively transform using sustainable manufacturing practices and principles to minimize negative environmental impacts and address climate change through industrial decarbonization all while growing the economy, strengthening supply chains, and creating high-quality jobs, among other benefits.27 To do so, the United States needs to develop and implement advanced manufacturing technologies, grow the advanced manufacturing workforce, and build resilient supply chains.28 To achieve industry- and economy-wide net-zero emissions, our approach will need to ensure U.S. industry remains domestically and globally competitive, while feeding the innovation economy to create those advanced and environmentally-just29 technologies, strengthening our manufacturing base with a skilled workforce, and encouraging continued onshoring to build resilient supply chains. Manufacturing drives both U.S. knowledge production and innovation,30 areas that will be key to keep industry competitive in the development and deployment of decarbonization technologies both at home and abroad.

DOE’s vision is of a vibrant and productive decarbonized U.S. industry, supplying products, technologies, and strategies to enable global decarbonization. DOE’s integrated and coordinated approach to investing in industrial technologies across the Department through Joint Strategy and Planning31 is aligned with this vision.

27 National Strategy for Advanced Manufacturing | Office of Science and Technology Policy 28 Ibid.

29 Environmental Justice | Environmental Protection Agency 30 Report to the President on Accelerating U.S. Advanced Manufacturing | President’s Council of Advisors on Science and Technology 31 See information about DOE’s joint strategy planning: Industrial Technology Programs across the U.S. Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.whitehouse.gov/wp-content/uploads/2022/10/National-Strategy-for-Advanced-Manufacturing-10072022.pdf https://www.epa.gov/environmentaljustice https://obamawhitehouse.archives.gov/sites/default/files/microsites/ostp/PCAST/amp20_report_final.pdf https://obamawhitehouse.archives.gov/sites/default/files/microsites/ostp/PCAST/amp20_report_final.pdf https://www.energy.gov/industrial-technologies/industrial-technology-programs-across-us-department-energy https://www.energy.gov/industrial-technologies/industrial-technology-programs-across-us-department-energy https://chains.28 https://benefits.27

Purpose The purpose of this RFI is to solicit feedback from industry, academia, research laboratories, government agencies, and other stakeholders on issues related to industrial decarbonization strategies. EERE is specifically interested in information on research, development, demonstration, and deployment of strategies to address the technical, social, financial, and environmental challenges related to U.S. industrial decarbonization. Input from this RFI and other stakeholder engagement will inform a new DOE vision study, Pathways for U.S. Industrial Transformations: Unlocking American Innovation. This is solely a request for information and not a Funding Opportunity Announcement (FOA). EERE is not accepting applications.

Request for Information Categories and Questions This RFI seeks input on four categories:

1. Industrial Decarbonization Challenges, Barriers, and Cross-Cutting Strategies

2. Framework for Industrial Decarbonization Pathways

3. Impacts and Evaluation Criteria for Industrial Decarbonization Pathways

4. Net-zero Decarbonization Pathways for Specific Industrial Subsectors

a. Cement

b. Chemicals

c. Food and beverage

d. Iron and steel

e. Pulp and paper

f. Petroleum refining

g. Rest of industry (other manufacturing, agriculture and forestry, mining, oil, and gas; construction; data centers; and water and wastewater treatment).

Questions are included at the end of each category. Helpful responses will provide context around your response on details such as the timing (e.g., near-, mid-, or long-term as outlined in the Roadmap); needed enabling conditions (e.g., hydrogen cost parity, access to electricity infrastructure, market demand); geography/location; and other specifics.

Category 1: Industrial Decarbonization Challenges, Barriers, and Cross-Cutting Strategies 1A: Primary Challenges and Barriers to Decarbonization Pathways to decarbonize extensive industrial ecosystems face a variety of technology, market, and infrastructure barriers. Barriers can exist within an industrial entity itself and more broadly within the industrial ecosystem. The flow of materials, energy, and resources through the value

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) chain are essential to industry and are thus integral to the strategies used to decarbonize industry.

In the context of these strategies, the industrial ecosystem for an individual process is considered as the cumulative web of environmental, health, economic, social, and technological impacts surrounding and attributable to each of the process’s value chain segments. The value chain is composed of five stages, interconnected by transport: initialization (formation/generation/extraction), transformation (in industry), distribution, consumption, and end-of-life. This scope goes beyond industry fence lines and requires financial and technological costs consideration in conjunction with environmental and social criteria. As part of this vision study, DOE is developing an updated framework for identifying and addressing major challenges and barriers to decarbonization. These are the primary challenges and barriers DOE has identified:

Thermal Systems Emissions. Thermal systems (e.g., process heat, combined heat and power) emissions represent about half of all energy-related industrial emissions with over 90% due to fossil fuel combustion.32 Thermal systems operate over a broad temperature range and some ranges lack cost-effective zero-emissions technologies.

Process Emissions. Process emissions from material transformations are intrinsic to current domestic production of vital commodities (e.g., cement manufacturing process emissions) and can be difficult to reduce or decarbonize.

Constraints Within Industrial Entities. Current industrial entities’ operation and structure can limit zero-emissions technologies adoption and material and energy efficiency improvements in existing processes. Beyond capital and operating budget limitations, barriers include:

• High cost and long lifetime of capital equipment.

• Risks associated with early adoption of unproven technologies.

• Equipping the workforce for the industrial transformation.

• Meeting zero-emissions technologies standards, permitting, and other regulations.

• Lack of incentives for material and resource efficiency improvements.

• Fully incorporating equity and justice for legacy, existing, and planned facilities’ communities and stakeholders.

Decarbonization Infrastructure. All decarbonization pathways will require the expansion of decarbonization infrastructure (e.g., building out the clean electric grid, clean hydrogen and

32 See the All Manufacturing Energy and Carbon Footprint | Department of Energy

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/eere/iedo/manufacturing-energy-and-carbon-footprints-2018-mecs https://combustion.32 bioenergy pipelines and transport networks, and carbon transport, utilization, and sequestration) faces technological, geographical, and temporal limitations. The same decarbonization infrastructure is also facing growing demand from the transportation and buildings sectors. Moreover, access to decarbonization infrastructure will vary regionally.

Inefficient Information Flows. Data privacy concerns and lack of information sharing mechanisms and incentives can impact the scale and speed of industrial decarbonization efforts. Improved information exchange within industry and between stakeholders would allow for more optimal resource allocation. Examples include sharing information to: develop case studies that could encourage early technology adoption; allow companies to benchmark against their peers; inform analyses; assess targets; enlighten decision-makers, operators, and partners across industry; and enable an equitable transition with all stakeholders’ input.

Underrepresented Social Criteria. Protecting the human element, including the workforce and associated communities that interact with industry, is a priority during the clean energy transition. However, lack of data and social metrics to measure community impacts can impede both the energy transition and social and environmental justice objectives. Inclusion of metrics in technology decision making can allow consistent and comparable social impact analysis to enable equitable outcomes. Examples of social and environmental justice metrics include contribution to economic development, incidence of detrimental labor practices, or hazardous substance management.33 Further development of metrics and methodologies to evaluate social and environmental impacts can guide industry towards a sustainable and just energy transition.

Category 1A: Questions on Primary Challenges and Barriers to Decarbonization This category is focused on challenges and barriers applicable across industry. Responses regarding subsector-specific decarbonization opportunities, barriers, and pathways should be submitted in Category 4.

1A.1 What feedback do you have on the primary industrial decarbonization challenges and barriers summarized above? Please list any additional barriers that you think are important.

1A.2 Which barriers do you feel are most important to address first?

1A.3 How would you recommend government engage to address these (or other) industrial decarbonization barriers?

33 United Nations Environment Programme. 2013. “The Methodological Sheets for Sub-categories in Social Life Cycle Assessment (S-LCA).” https://www.lifecycleinitiative.org/wp-content/uploads/2013/11/S- LCA_methodological_sheets_11.11.13.pdf.

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.lifecycleinitiative.org/wp-content/uploads/2013/11/S-LCA_methodological_sheets_11.11.13.pdf https://www.lifecycleinitiative.org/wp-content/uploads/2013/11/S-LCA_methodological_sheets_11.11.13.pdf https://management.33

1A.4 Aside from cost, what vulnerabilities/challenges do facilities face when adopting new technologies?

1A.5 What are the blind spots or unknowns when transferring technology from the bench-scale to commercial scale?

1A.6 What are the current and future gaps/barriers in workforce needs and availability?

1A.7 What are the differences in workforces across industries/across the country related to the availability of skillsets, staff, training, etc.?

1A.8 What resources is your organization using to identify and address workforce needs and are those resources effective?

1A.9 What other resources are needed to identify and address workforce needs?

1A.10 How can government broaden the reach of energy management education and training programs to engage a diverse audience, including outside the traditional sphere?

1B: Cross-Cutting Decarbonization Strategies Subsequent research and stakeholder engagement has reinforced the four cross-cutting pillars of decarbonization identified in the DOE’s 2022 Industrial Decarbonization Roadmap34 and depicted in Figure 2: energy efficiency; industrial electrification; low-carbon fuels, feedstocks, and energy sources (LCFFES); and carbon capture, utilization, and storage (CCUS). We have also identified a fifth cross-cutting priority for the foundational materials and manufacturing technologies necessary for each pillar to be successful. The industrial decarbonization technological opportunity space is comprised of measures across all pillars. This section provides a high-level summary and more detail on the pillars can be found in the Roadmap.

Energy and Material Efficiency Energy efficiency measures and system design are fundamentally important at all industrial decarbonization stages since they apply to incumbent and future technologies. Some examples include process integration, strategic energy management, and operational improvements to equipment such as motors. Energy efficiency barriers include inadequate awareness of efficiency measures and incentives; unfavorable return on investment due to low fossil energy cost and/or high additional equipment cost (particularly applicable to smart manufacturing);

operations disruptions during retrofits; waste heat integration engineering constraints; lack of strategic energy management to ensure improvements persist; and rebound effects.

Materials and resources (including water35) entering, used or produced within, and leaving industrial facilities have embodied environmental impacts that are not fully characterized or

34 Referred to as the “Roadmap” within this RFI. Industrial Decarbonization Roadmap | Department of Energy 35 U.S. Manufacturing Water Use Data and Estimates: Current State, Limitations, and Future Needs for Supporting Manufacturing Research and Development — National Renewable Energy Laboratory

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/industrial-technologies/doe-industrial-decarbonization-roadmap https://research-hub.nrel.gov/en/publications/us-manufacturing-water-use-data-and-estimates-current-state-limit-2 https://research-hub.nrel.gov/en/publications/us-manufacturing-water-use-data-and-estimates-current-state-limit-2 understood and can significantly affect the environment and worker and community health and safety. More efficient use of materials and resources, waste reductions, and proper siting of industrial facilities can mitigate negative impacts and provide environmental and social benefits to impacted communities. Examples of material efficiency include redesign, reuse, repurposing, and recycling.36 Material circularity and material efficiency barriers include absent or inadequate reverse supply chain infrastructure, scale-up risks and performance or quality trade-offs with alternative substitutes, higher costs relative to linear supply chains, concerns around labor costs, possible job losses, regulatory standards, and rebound effects.

Industrial Electrification Electrification of fossil fuel-driven mechanical, thermal, and chemical processes can significantly reduce energy consumption and associated GHG emissions. This includes switching to heat pumps, electric boilers, electric furnaces, advanced electro-heating technologies (that rely on microwaves, infrared waves, electromagnetic induction, or plasma for instance), electro-chemical and electrically assisted biological processes, membrane separation, and electrification of rotary equipment.37 As the grid decarbonizes, purchased electricity-related emissions will also reduce. Barriers to industrial electrification include clean electricity availability, reliability, and cost; inefficiencies and inadequacies in transmission and distribution infrastructure; scale-up risks and performance or quality trade-offs with electrified processes;

high capital cost of electricity-driven equipment; disruption and/or drastic reconfiguration of existing processes during retrofits; material limitations under harsh environments; and constraints on type, grade, and availability of feedstocks that could be processed (e.g., steel scrap in electric arc furnaces).

Low-Carbon Fuels, Feedstocks, and Energy Sources Manufacturing industry’s almost ubiquitous demand for thermal energy for process heat, as well as demand for certain feedstocks, has the potential to at least partially be met with low-and zero-carbon alternatives.38 These alternatives are collectively termed low-carbon fuels, feedstocks, and energy sources (LCFFES) in the vision study. Examples of LCFFES include replacing fossil fuels and fossil fuel-derived non-fuel feedstocks with low-carbon energy carriers and non-fuel feedstocks (such as hydrogen; ammonia; synthetic fuels including e-fuels;

sustainably sourced biomass,39 biogas,40 and bioproducts; and chemical precursors from CO2) and utilizing clean thermal energy sources (such as solar, geothermal, or small modular nuclear

36 More examples on circular economy strategies can be found in: Sustainable Manufacturing and the Circular Economy | Department of Energy 37 See Thermal Process Intensification: Transforming the Way Industry Uses Thermal Process Energy | Department of Energy 38 Thiel and Stark. 2021. To decarbonize industry, we must decarbonize heat | Joule.

39 See 2023 Billion-Ton Report: An Assessment of U.S. Renewable Carbon Resources | Department of Energy 40 Also referred to as renewable natural gas and landfill gas. See: Biogas-Renewable natural gas | Energy Information Administration

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.energy.gov/eere/amo/articles/sustainable-manufacturing-and-circular-economy https://www.energy.gov/eere/amo/articles/sustainable-manufacturing-and-circular-economy https://www.energy.gov/eere/amo/articles/thermal-process-intensification-transforming-way-industry-uses-thermal-process https://www.energy.gov/eere/amo/articles/thermal-process-intensification-transforming-way-industry-uses-thermal-process https://www.sciencedirect.com/science/article/pii/S2542435120305754 https://www.energy.gov/eere/bioenergy/2023-billion-ton-report-assessment-us-renewable-carbon-resources https://www.eia.gov/energyexplained/biomass/landfill-gas-and-biogas.php https://www.eia.gov/energyexplained/biomass/landfill-gas-and-biogas.php https://alternatives.38 https://equipment.37 https://recycling.36 reactors). Beyond meeting industry’s current demands, some strategies incorporating LCFFEES can provide the opportunity for a more robust system than is currently employed, with the integration of energy storage (such as thermal energy storage41). Each LCFFES will have a unique set of approaches, barriers, and opportunities. Example barriers include availability, inconsistent carbon accounting practices, or high cost compared to existing sources.

41 Energy StorM – DOE Office of Electricity Energy Storage Program (sandia.gov)

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://www.sandia.gov/ess/storm

Carbon Capture, Utilization, and Storage CCUS technology opportunities include capture and reuse (utilization for e-fuels, chemical precursors, etc.) or sequestration (long-term storage in geological formations, saline aquifers, minerals, etc.) of high-purity process CO2 streams and low-purity combustion CO2 streams.42

Carbon capture shows promise in significantly reducing emissions, particularly for industrial processes generating low-CO2 concentration streams. Yet it remains prohibitively expensive for most applications due to high capital costs and the parasitic energy loads they add. Other CCUS barriers include the uncertainty of merchant and captive CO2 markets in a low-carbon future;

concerns around feasibility, safety, and monitoring of a nationwide CO2 pipeline transport and long-term CO2 storage infrastructure; facilities’ lack of proximity to a viable CO2 storage location; and inadequate guidelines on captured, reused, and stored carbon accounting.

Category 1B: Questions on Cross-Cutting Decarbonization Strategies This category is focused on cross-cutting technologies and strategies that apply across industry.

Responses regarding subsector-specific decarbonization technologies and strategies should be submitted in Category 4.

1B.1 What are the most impactful cross-cutting and systems-wide strategies needed to decarbonize industry and why?

1B.2 What approaches are useful to allocate and structure investments for cross-cutting technologies vs. industry-specific technologies?

1B.3 Given the breadth of available and emerging technologies, which cross-cutting technologies are most in need of RD&D funding?

1B.4 Some example barriers to cross-cutting strategies are provided in this section. Are there additional barriers you believe hinder cross-cutting strategy/technology adoption?

1B.5 Which barrier(s) do you think is most important to address?

1B.6 Which barrier(s) do you believe to be most difficult to overcome and how might you do so?

1B.7 What approaches are needed to reduce or overcome the risk of deploying new cross-cutting technologies, catalyze uptake, and accelerate technology adoption?

42 For more information on carbon management and removal, see: Carbon Management - Pathways to Commercial Liftoff | Department of Energy and Roads to Removal (R2R): Options for Carbon Dioxide Removal in the United States

This is a Request for Information (RFI) only. EERE will not pay for information provided under this RFI and no project will be supported as a result of this RFI. This RFI is not accepting applications for financial assistance or financial incentives. EERE may or may not issue a Funding Opportunity Announcement (FOA) based on consideration of the input received from this RFI.

https://liftoff.energy.gov/carbon-management/ https://liftoff.energy.gov/carbon-management/ https://roads2removal.org/ https://roads2removal.org/ https://streams.42

Category 2: Framework for Industrial Decarbonization Pathways As stated previously, the plural use of the term “pathways” is at the heart of this new vision study. Decarbonizing industry will require a wide range of technology solutions across all the pillars of decarbonization. There is no single pathway that will work for any single industrial subsector.