A Blueprint for a Clean and Competitive Industrial Sector
The U.S. Department of Energy (DOE) and the White House Office of
Science and Technology Policy, with input from departments and agencies across the federal government, have released The National Blueprint for a Clean & Competitive Industrial Sector (Blueprint). Building on ongoing industrial investments across federal agencies, the Blueprint outlines five strategies within a private-sector-led and government-enabled framework to fuel continued growth of American manufacturing.
This Blueprint lays out a pathway to achieve a low-carbon U.S. industrial sector that is less polluting; more economically competitive; resilient to changing global market conditions; and a contributor to good jobs and revitalization of industrial communities, public health, energy and environmental justice1, and national security.
The industrial sector is diverse and includes manufacturing and non-manufacturing subsectors (agriculture, mining, and construction), which together contribute approximately 38% of total greenhouse gas (GHG) emissions.2 This Blueprint focuses on manufacturing because it is the largest consumer of energy and source of emissions within the broader industrial sector.
The objective of the Blueprint is to elicit rapid near-term GHG emissions reductions and expanded economic competitiveness while advancing transformative solutions for the long term. Through collaborations between the U.S. government and owners and operators of manufacturing plants, labor unions, civil society organizations in industrial communities, environmental groups, technology providers, equipment manufacturers, engineering firms, and project developers, the vision of this Blueprint can become a reality. It also aims to promote communication with communities and Tribal nations to ensure all impacted stakeholders have a voice in the transition to co-produce and deploy solutions that generate benefits for all.
The Blueprint establishes five strategies to guide near-term federal government coordination.
Accelerate deployment of commercially available, cost-effective lower carbon solutions in the near term. Commercially available alternatives to high-emitting industrial processes that could achieve a 10% to 15% reduction in GHG emissions by 2030 already exist.3 The Pathways to Commercial Liftoff Report4 identifies that approximately another 25% emissions reductions are possible by 2030 by actions outside of industrial facilities through the progressive reduction of GHG emissions from the U.S. power and transportation sectors. Federal government coordination is necessary to accelerate deployment of these technologies, which often face barriers associated with industry inertia, the lack of familiarity with new materials or manufacturing techniques, lack of finance for capital-intensive upgrades, and/or risk avoidance.
Demonstrate emerging solutions at commercial scale to de-risk deployment. Deep emissions reductions in many subsectors will require new large-scale changes to methods of production. The private sector is uniquely positioned to envision and build these commercial first-of-a-kind projects. Although these projects will require significant investment, they will produce a critical knowledge base for the domestic industrial sector and the clean energy research and development community, not only serving as a foundation for establishing the necessary enabling supply chain, permitting, and innovation to expand these technologies to commercial scale, but also allowing the supply chain to remain competitive with overseas players.
Increase data use to drive emissions reductions and efficiency gains that can significantly improve performance and track progress. In recent years, emissions intensity measurement and reporting systems have grown more robust and standardized, enabling manufacturers to accurately track emissions reductions and gain access to growing low-carbon markets. Meanwhile, digital technologies, including emerging forms of sensing, and computational tools are enabling new frontiers in the ways industries manage operations that could lead to efficiency gains that reduce GHG emissions. Hardware tools such as ubiquitous sensors and cyber-physical systems can capture additional data necessary to apply software tools, such as distributed computing, artificial intelligence/machine learning, the Internet of Things, digital twins, and continuous learning. These approaches represent a shift in controls for industrial facilities that was not possible a decade ago.
Innovate and advance research to develop transformative processes and products for deep GHG emissions reductions. Bringing low-emissions industrial processes and materials innovations to market quickly and efficiently means fast-tracking the stages of innovation to maximize the impact of technology investments. The International Energy Agency estimates 55% of emissions reductions technologies necessary to meet net zero are not yet in commercial stage. An example of this is cement, where technologically mature approaches such as use of supplementary cementitious materials or calcined clay can reduce emissions by 30% to 40%, but further reductions will require new processes or products. At each stage of innovation, the government can play an important role. The first stage involves solution discovery of low-emission processes and material innovations, and partnerships with government agencies and research institutions play a crucial role in this phase. Next, the product development phase to develop a minimum viable product (MVP) can leverage agile methodologies, continuous iteration, and collaboration with potential customers. The third phase is the pilot demonstration phase to test the MVP in real-world industrial settings. Finally, in the go-to-market and scale stage, the solution transitions from pilot to full-scale deployment, and can leverage investments through incentives like tax credits, grants, and strategic partnerships.
Integrate across the product life cycle to reduce embodied GHG emissions in industrial products and minimize waste. Establishing standards and evaluation methods to monitor emissions across supply chains, from raw material extraction to end-of-life disposal, can create important efficiencies. Many opportunities to reduce embodied emissions are driven by mitigation opportunities outside the industrial facility fence line. Manufacturers must deepen their understanding of both the upstream and downstream effects associated with all input and output materials. This knowledge is crucial for maximizing circularity within their operations. By doing so, they can extend the lifespan of existing materials and contribute to a more sustainable manufacturing process. Additionally, co-locating with other manufacturers can create opportunities for mutual benefits. It will be important for manufacturers to inform any co-location decisions to ensure partnerships enhance resource efficiency and promote a circular economy. Scaling these efforts will require the advancement of standards and evaluation methods to share data on carbon production and reductions across supply chains.
The Blueprint also details a set of levers, that is, programs available to governments to support this transition: expanding supply-side investments; creating demand-pull; implementing codes, standards, and reporting requirements; ensuring locally defined benefits for workers and communities; developing a common infrastructure; increasing data transparency; and expanding international cooperation. Implementing these levers to achieve the strategies outlined in the Blueprint will translate to substantial improvements in public health, accelerated innovation to support U.S. international competitiveness, reduced GHG emissions, mitigated fiscal and climate risk, expansion of high-paying jobs, more efficient stewardship of U.S. natural resources, renewed investments in industrial communities, and both near- and long-term financial stability. The implementation also aims to strengthen U.S. diplomatic standing and influence international policy to benefit both domestic and global environmental outcomes.
A Call to Action
The industrial sector has historically been referred to as “hard-to-abate.” Although the challenges are real, that understanding is changing. The market for low-carbon materials such as green steel and low-carbon cement is growing. The technologies that producers have available to them to initiate these emissions reductions are being proven at commercial scale. There are innovative deep decarbonization solutions in research and development, attracting new talent to solve these challenges. Whereas the transition will take time, the next few years are vital for building the momentum needed to propel the economy forward over the coming decades. The Blueprint lays out federal actions that would support decarbonization of U.S. industry in line with the U.S. long-term strategy, while ensuring the greatest realization of co-benefits are achieved to strengthen economic prosperity, health, employment, and security across the country. Successful implementation of the programs already in progress, increased interagency cooperation, and a detailed plan with continued private sector engagement are the next steps for putting this Blueprint into action.
References
To access the DOE’s National Blueprint for a Clean &Competitive Industrial Sector report, visit www.energy.gov/mesc/reports. Disclaimer: This excerpt does not imply endorsement by DOE or the United States Government.