In 2022, the Department of Energy (DOE) opened the Office of Manufacturing and Energy Supply Chains (MESC) under the Office of the Under Secretary for Infrastructure with funding from the Bipartisan Infrastructure Law. MESC has since emerged as a key player in accelerating America’s transition to clean energy. With a commitment of over $20B in direct investments, MESC is at the forefront of clean energy deployment, driving transformative manufacturing capacity and targeted workforce investments.
Core Functions and Strategic Approach
MESC’s mission is to deliver the “how” of the energy transition quickly, securely, and equitably. The office operates as the frontline of clean energy capital deployment, with core functions on three key investment areas:
- Manufacturing Investing: Strengthening and securing supply chains required to reindustrialize the country’s energy infrastructure, while supporting a clean and equitable energy transition.
- Workforce Investing: Encouraging workforce education and training through direct investing in cutting-edge energy manufacturing programs.
- States Manufacturing Analytics Backbone: Vigorous modeling to guide and assist DOE strategy and investments, private sector collaborative investments, and policy recommendations to the broader United States government.
MESC strategic investment in critical materials, workforce, and essential manufacturing empowers DOE’s other major project offices such as Office of Clean Energy Demonstrations and Grid Deployment Office through de-risking the supply chains for transmission, hydrogen, carbon capture, and other emerging clean technology projects.
Strategic Financing Programs:
MESC employs a variety of financing programs to achieve its mission, including the largest investment tax credit for energy manufacturing and energy efficiency in manufacturing history: the Qualifying Advanced Energy Project Credit Program (also known as Sec. 48C). Sec. 48C was initially established in 2009, and in 2022, the Inflation Reduction Act provided $10 billion total in new authority for this program, with 40% (or $4 billion) reserved for projects in energy communities with closed coal mines or retired coal-fired power plants. The program goal is to create high-quality jobs, decrease industrial emissions, and increase domestic production of critical clean energy products and materials recycling. Rebates for manufacturers also complement MESC’s multifaceted approach to fostering clean energy innovation. Specifically, MESC supports the Energy Efficient Transformer Rebates and the Extended Product System Rebates.
Ongoing and Planned Investments:
As of now, several funding opportunities are underway, and new funding opportunities are announced regularly. Several ongoing funding opportunities include:
- Qualifying Advanced Energy Project Credit Program (48C): Sec. 48C provides a tax credit of up to 30% of the capital cost of advanced energy projects in three categories: (1) Clean energy manufacturing and recycling, (2) Greenhouse gas emission reduction in industrial facilities, and (3) Critical materials refining, processing, and recycling.
- Domestic Manufacturing Conversion Grants: This program seeks to accelerate the growth of domestic production capability of electric vehicles and components. Eligible projects should address conversion of manufacturing facilities to expand domestic production capability of electric vehicles, components, and materials.
- Battery Materials Processing and Battery Manufacturing Grants: This program aims to reach across both the midstream and downstream segments of the battery supply chain, supporting both midstream battery materials and component manufacturing, as well as subsequent cell manufacturing and end of life recycling.
- Advanced Energy Manufacturing and Recycling Grant Program: This program will award financial assistance to small- and medium-sized manufacturers in energy communities to 1) establish new facilities or 2) re-equip or expand existing facilities for the manufacturing or recycling of advanced energy property.
- State Manufacturing Leadership Program– Small- and medium-sized manufacturing firms can leverage this program to connect broadly with resources for utilizing smart manufacturing technologies in facilities, using States as critical partners for providing technical assistance.
Achievements and Impact:
Private sector investment catalyzed by MESC exceeds $5B, directly supporting energy manufacturing programs at universities, community colleges, and trade schools. This impact as of December 2023 includes over 720 students trained annually, 33% of investments directed towards energy justice communities, enabling 1.3M electric vehicles annually, creating over 10,000 jobs, and facilitating the adoption of 300,000 additional residential heat pumps. Learn more about MESC’s impact here.
A comprehensive map showcases MESC’s project portfolio, highlighting the states where investments are driving significant advancements in batteries and critical materials, industrial assessment centers, and centers of excellence.
Stay Up to Date:
To connect with MESC and keep up to date on the office’s latest news, events, and funding opportunities sign up for email updates, get in touch with the team, and connect with MESC on LinkedIn and Youtube.
_____
Want to know more about BIL? Explore additional entries to the Breaking Down the Bipartisan Infrastructure Law series to discover programs funded through this $1.2T investment. CEBN’s cleantech funding database includes even more opportunities.
The post Breaking Down the Office of Manufacturing and Energy Supply Chains appeared first on Clean Energy Business Network.