Biden Announces $1.2 billion Investment in Carbon Capture Technology
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The Biden management announced a $1.2 billion investment on January 26, 2026, to support the development of carbon capture technology, aiming to reduce greenhouse gas emissions from industrial sources. This funding represents the latest effort by the administration to meet it’s climate goals and transition to a clean energy economy.
What is Carbon Capture Technology?
Carbon capture technology is a set of processes that capture carbon dioxide (CO2) emissions from sources like power plants and industrial facilities, preventing them from entering the atmosphere. Captured CO2 can then be stored underground or utilized in various industrial applications.
Details of the Investment
The $1.2 billion will be distributed through the Department of Energy’s Carbon Capture Demonstration Program,established under the Bipartisan Infrastructure Law passed in november 2021. The funding will support projects across the United States, focusing on capturing CO2 from cement, steel, and aluminum production facilities. According to a press release from the White House, the projects are expected to capture at least 6 million metric tons of CO2 annually, equivalent to removing 1.3 million gasoline-powered vehicles from the road. The Department of Energy will provide up to $1.2 billion in funding, with projects requiring a 50% cost share from the private sector.
Examples of Funded Projects
Among the projects receiving funding is a demonstration project at the Holcim cement plant in Florence, Alabama, receiving $180 million. This project aims to capture 95% of the CO2 emissions from the plant, utilizing the captured CO2 for concrete production. Another project, at the steel Dynamics Inc. facility in Sinton, Texas, will receive $250 million to demonstrate carbon capture from steel manufacturing. The full list of projects and funding amounts is available on the Department of Energy’s website: https://www.energy.gov/carbon-capture-demonstration-program.The administration estimates these projects will create over 3,000 jobs.
Administration’s Climate Goals
This investment is part of President Biden’s broader commitment to reduce U.S. greenhouse gas emissions by 50-52% below 2005 levels by 2030, as outlined in the Nationally Steadfast Contribution submitted to the United Nations Framework Convention on Climate Change. The administration believes carbon capture technology will play a crucial role in decarbonizing the industrial sector, which accounts for a notable portion of U.S. emissions. According to the Environmental Protection Agency, the industrial sector accounted for 24% of U.S. greenhouse gas emissions in 2022.
