U.S. Energy Department Releases First Supply Chain Strategy to Support Clean Energy

The U.S Energy Department on Feb. 24 published a comprehensive plan that details more than 60 actions to boost U.S. supply chain resiliency, stimulate domestic manufacturing capacity, and support job creation. The all-encompassing report labelled, “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy Transition,” examines a number of paramount strategies to build a secure, robust and diverse domestic energy sector manufacturing base aimed to establish the U.S. as a worldwide leader in clean energy trade and innovation.

The report, which follows the 2021 executive order America’s Supply Chains, is supported by 13 supply chain evaluations across the energy sector, including solar energy, semiconductors, and cybersecurity. The proposals deliver vital strategies and suggestions for Congress and the federal government to help distribute additional jobs and a brighter, resilient, and cleaner future. Moreover, the strategies and arrangements issued in the report will ensure the US has the ability and know how to respond swiftly in the face of challenges such as global production shortages and trade disruptions, as made evident by the recent shortage of semiconductors chips due to the COVID-19 pandemic.

Additionally, the report provides seven key areas for enhancing supply chain robustness and reshaping American manufacturing. The pivotal areas to ensure supply chain resilience, according to the DOE proposal are:

• Increase readiness of critical materials;
• Develop domestic manufacturing resources;
• Invest and encourage the development of diverse, reliable and collectively accountable foreign supply chains;
• Expand the adoption and implementation of clean energy;
• Enhance end of life energy related waste management;
• Attract, promote and support a competent workforce for the clean energy transition;
• Increase supply chain knowledge and decision making.

Recommendations for congressional action include enacting legislation to provide tax incentives to support clean energy manufacturing and deployment, including incentives for new facilities and their ongoing operations.

The agency said it has already made notable progress in addressing supply chain vulnerabilities. Ongoing efforts include a $44 million funding opportunity to provide commercial-ready technologies for a net-zero emissions pathway toward increased supplies of critical elements required for a clean energy transition. A new Manufacturing and Energy Supply Chains Office is tasked with strengthening and securing energy supply chains to facilitate infrastructure modernization to support the transition. Further, the department has issued a request for information for the $8 billion allocated from the 2021 Infrastructure Investment and Jobs Act to establish regional clean hydrogen hubs.