Policy & Regulation

DOE reveals first clean energy projects receiving $1.93B in advanced manufacturing investments

DOE reveals first clean energy projects receiving $1.93B in advanced manufacturing investments
(Credit: Kārlis Dambrāns / Flickr)

The U.S. Department of Energy (DOE) released details for 35 projects across 20 states that voluntarily shared with DOE they received a total of $1.93 billion in allocations of the Qualifying Advanced Energy Project Credit (48C).

48C is an allocated tax credit funded through the Inflation Reduction Act, aimed at accelerating clean energy manufacturing and recycling and reducing greenhouse gas emissions at industrial facilities.

The projects announced are addressing needs across the clean energy economy, including grid components (e.g., transformers), electric vehicle components and chargers, solar components, clean steel, critical materials processing and recycling, and other clean energy products. Seven of the projects announced are located in traditional energy communities, which include communities with closed coal mines or coal plants.

“President Biden’s economic agenda ensures all communities benefit from the growth of the clean energy economy by driving innovation and investment in areas of the country that have long been at the forefront of fossil fuel production,” said U.S. Secretary of the Treasury Janet Yellen. “Investments in advanced energy projects strengthen our energy security and create good-paying jobs in vital fields like clean energy manufacturing and critical materials processing. They also allow for existing energy infrastructure to be upgraded for the clean energy economy. All of this work will help lower energy costs for American families and small businesses.”

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The IRA expanded the Qualifying Advanced Energy Project Credit (48C) to provide an additional credit allocation of $10 billion, with $4 billion set aside for projects in designated energy communities.  The 48C credit is an investment tax credit of up to 30% of qualified investments for qualifying projects, provided they meet prevailing wage and apprenticeship requirements. 

On March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 projects across 35 states, with approximately $1.5 billion allocated to projects in designated energy communities. As required by statute, the 48C(e) program can release the names of all organizations allocated a credit and the amount of that allocation only after projects are certified, a process that can take up to two years. In advance of that certification, as of April 18th, 35 projects voluntarily self-disclosed information to DOE to share publicly as part of today’s announcement.

Clean energy and clean vehicle manufacturing

Fourteen projects will aim to expand the manufacturing of clean energy products and materials. These projects will include new and expanded facilities to produce products ranging from electric vehicle chargers, recycled glass and polysilicon for solar panels, and steel needed for offshore wind projects. These projects include:

  • Highland Materials, Inc – Surgoinsville, TN – $255.6 million: This project, which is located in an Energy Community, will initially produce 16,000 Metric Tons per year (MT/year) of solar-grade polysilicon at less than standard cost and with a 90% reduction in carbon emissions. At full capacity, it will produce 20,000 MT/year – the equivalent of 11 GW of solar cells. Highland is working with Northeast State Community College to develop and implement workforce development including DOL-certified apprenticeship programs, along with other community support programs.
     
  • Mobis North America electrified Powertrain, LLC (MNAe) – Richmond Hill, GA – $57.6 million: MNAe will be constructing three different electric vehicle component plants that will provide parts to the production of Hyundai and Kia electric vehicles. The awarded plant, located in Richmond Hill, will specifically produce Power Electric Systems which are integral to the production of electric vehicles. 

Industrial decarbonization

Eight projects will aim to reduce emissions at existing industrial facilities or accelerate the manufacturing of clean hydrogen and low carbon fuels, including the manufacturing of electrolyzers, to facilitate the decarbonization of energy-intensive sectors like steel and cement. These projects include:

  • Middlesex County Utilities Authority, Sayreville NJ – $40.5 million:  This project intends to increase the efficiency of a solid waste handling process of wastewater treatment through a new Advanced Anaerobic Digestion Facility, increasing the use of renewable energy and reducing emissions by approximately 23%. 
  • Topsoe SOEC Production US Inc., Chester VA – $135.9 million: This project will aim to expand U.S. electrolyzer manufacturing capacity, helping to meet the growing demand for green hydrogen. Electrolyzers are used for decarbonizing energy-intensive industries like steel, mining, and long-distance transportation, which account for approximately 30% of global greenhouse gas emissions.

A full list of projects is available here.

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