U.S. Department of Energy Establishes Office of Clean Energy Demonstrations

The U.S. Energy Department on Dec. 21 formed the “Office of Clean Energy Demonstrations” to deliver on President Biden’s ambitious climate agenda, create jobs and reduce pollution. The Bipartisan Infrastructure Law, enacted last month, offers over $20 billion to form the new office and enhance clean energy projects such as green hydrogen, carbon capture, grid level energy storage and small modular reactors. Such projects demonstrate the usefulness of advanced technologies in practical environments at larger scale and creates next steps towards extensive implementation and deployment.

The investment will boost the agency’s work on clean energy demonstrations in order to deliver revolutionary new technologies as part of the $62 billion investment under the law. Investing in these demonstrations will fund massive projects and unleash additional investment from the private sector to implement these technologies.

The programs will invest substantially in demonstration projects in rural areas and underprivileged communities, a key focus of President Biden’s Justice40 initiative, designed to ensure 40 percent of clean energy investing benefits reach disadvantaged communities and those disproportionately affected by climate change. The office will work constantly with environmental justice groups, labor, and communities to help develop programs. The department will support smaller-scale projects in addition to the large-scale ones that are important to achieve the administration’s climate goals.

A joint Office of Energy and Transportation was formed earlier this month to support the implementation of the law, which includes $7.5 billion to build out a nationwide charging infrastructure for electric vehicles. The office will fast-track the implementation of reliable and affordable charging stations networks nationwide.

Also, in December, the agency announced a $100 million funding to support the application of technologies that can substantially reduce emissions from communities and industries and encourage energy efficiency and drive grid transformation.

The law includes provisions to sustain the existing clean energy fleet – decades-old nuclear and hydropower facilities – that provide 27 percent of the nation’s electricity. A $6 billion Civilian Nuclear Credit program will prevent premature closure of zero-carbon nuclear plants, which would otherwise retire and are deemed as safe to remain operational, and prioritize facilities that use domestically produced fuel. Existing hydropower facilities will receive over $700 million to improve efficiency, maintain dam safety and reduce environmental impacts.