US directs $254 million to cut emissions from heavy industry

WASHINGTON (Reuters) - The Biden administration said on Thursday it is directing about $254 million in funding for projects aiming to cut greenhouse gas emissions from heavy industry such as iron, steel and cement.

Nearly 50 projects across 21 states will be awarded $171 million to speed up decarbonization technologies, said the Department of Energy. The agency also opened the application process for $83 million in funding for cutting emissions in hard to decarbonize industry.

U.S. Secretary of Energy Jennifer Granholm said the money "will help advance the innovative technologies we need to lower costs and improve energy efficiency in America’s factories and industrial centers."

Academic institutions will lead 22 of the projects, private industry will lead 16, DOE laboratories will lead eight and non-profit groups will lead three, the DOE said. The funding is from annual department appropriations.

Among the projects getting awards are 10 on decarbonizing industrial heat which will get $25 million, six on commercial development of hydrogen-fueled heating and power technologies which will get $21 million, and six on decarbonizing chemicals such as fuels, polymers and paints.

Seven projects focused on decarbonizing iron and steel production, including overcoming challenges with using hydrogen in steel making, will get $37 million.

(Reporting by Timothy Gardner; Editing by Chizu Nomiyama)