The U.S. Department of Energy has terminated financial participation of its Office of Clean Energy Demonstrations (OCED) in proposed carbon capture and sequestration (CCS) facilities at Heidelberg Materials North America’s Mitchell, Ind., and National Cement Company of California’s Lebec cement plants.
The producers were each on track for awards of up to $500 million, representing a nearly 50/50 cost sharing of these themed projects: Mitchell Cement Plant Decarbonization and Lebec Net Zero Cement Plant. The former entails a facility equipped for upward of 2 million metric tons of carbon dioxide per year, while the latter combines a 900,000 metric tpy CCS facility plus limestone calcined clay cement (LC3) production equipment.
Heidelberg Materials Mitchell and National Cement Lebec are among 24 projects whose awards, totaling $3.7 billion, DOE terminated on May 30. Energy Secretary Chris Wright noted that each project had received “thorough and individualized review” and did not stand to “generate a positive return on investment of taxpayer dollars.”
“Today’s announcement is candidly a missed opportunity for both America’s cement manufacturers and this Administration, as carbon capture and sequestration projects have long been supported by bipartisan members in Congress and bipartisan administrations, including President Trump’s first term,” countered American Cement Association President and CEO Mike Ireland. “The U.S. cement industry fully supports the administration’s approach to bolstering domestic manufacturing and innovation by eliminating regulatory red tape that has limited U.S. cement companies’ productivity and delayed their efforts to reach energy independence. We believe these CCS projects align with that strategy and stand committed to supporting our members in the appeal process to ensure these critical investments are delivered.”
Jeff Sieg, director, corporate communications, North America told Cement Optimized, “Heidelberg Materials has long been focused on leading innovation in the cement manufacturing sector. This includes research, development and deployment of large-scale decarbonization technologies such as carbon capture and sequestration. The company received notification of the termination of the $500 million award from the U.S. Department of Energy (DOE) for our Mitchell Cement Plant Decarbonization Project in Indiana. The DOE indicates this decision can be appealed and we are in the process of evaluating this course as we consider our next steps for the Mitchell project.”
National Cement Company also weighed in on the developments. “We are reviewing our options to deliver on the commitments associated with the Lebec Net-Zero project. As we understand the new priorities of the U.S. Department of Energy, we want to emphasize that this project will expand domestic manufacturing capacity for a critical industrial sector, while also integrating new technologies to keep American cement competitive,” Jon Dearing, vice president, National Cement Company, told Cement Optimized.
Separately, Cemex has confirmed that the DOE decision did not impact the project at its Cemex Knoxville cement plant, which was chosen for a Department of Energy-funded carbon capture, removal and conversion test center.
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