A Mitchell-based cement plant was selected to receive up to $500 million in funding from the U.S. Department of Energy (DOE) for a major carbon reduction project, state and federal officials announced on Monday.
Heidelberg Materials North America is expected to use the federal dollars to bring online a system to capture and store carbon underground at the plant site. The project aims to capture at least 95% of the carbon dioxide released by the cement plant, which will prevent 2 million tons of carbon dioxide from entering the atmosphere each year.
The award is part of a larger, $6 billion announcement by the Biden administration to fund several commercial-scale decarbonization projects nationwide that will slash emissions from the industrial sector.
The DOE’s Industrial Demonstrations Program — which is overseeing the awards — seeks to move energy-intensive industries toward net-zero. Federal energy officials said it’s the largest-ever U.S. investment to decarbonize domestic industry to fight climate change.
“So, what does this investment here mean? … It means that in the carbon-constrained future, that this plant will continue to lead the way in the production of low- to no-carbon cement,” said David Crane, DOE’s Under Secretary for Infrastructure, speaking at the Heidelberg Materials plant Monday morning. “And by doing that, it’s going to provide the jobs, that community support, for the remainder of the 21st century. And that’s very exciting to us.”
Heidelberg Materials submitted its application in 2023. Out of more than 400 bids, the Mitchell project was one of 33 selected across 20 states to participate in the new DOE program.
“It’s a statement that’s heard around the world, and to have it be in Mitchell, Indiana, to provide cement — that is the product that every project needs, and needs more of, in a state like Indiana where we’re growing and so much development is occurring. This is that foundational product,” said Gov. Eric Holcomb. “To have the most modern plant, the largest in America, producing that product, I can’t tell you how proud I am of the men and women that go to work here every single day.”
The new Mitchell cement plant was recently modernized to produce more than triple its previous capacity and incorporate features to minimize energy consumption, company officials said. The location also has the ability to use alternative fuels and raw materials to reduce greenhouse gas emissions.
The industrial sector is responsible for roughly 25% of all the nation’s emissions, according to the U.S. Environmental Protection Agency. Decarbonization has proven to be difficult due to the sector’s energy-intense, large-scale operations.
Other funding will go toward projects at aluminum, iron, steel and food and beverage facilities, according to the DOE.
That includes Constellium in Ravenswood, West Virginia, which aims to operate a first-of-its-kind zero-carbon aluminum casting plant and install low-emission furnaces that can use clean fuels such as hydrogen. The company produces aluminum for a range of products including cars and planes.
Kraft Heinz will install heat pumps, electric heaters and electric boilers to decarbonize food production at 10 facilities, including in Holland, Michigan.
Cleveland-Cliffs Steel Corporation in Middletown, Ohio, will additionally retire one blast furnace, install two electric furnaces, and use hydrogen-based ironmaking technology with its share of DOE funds. The project aims to eliminate 1 million tons of greenhouse gas emissions each year from the largest supplier of steel to the U.S. automotive industry.