US green energy industry experiences growth as federal funding increases

In a groundbreaking move, US company LanzaJet has announced plans to build a second, larger plant on US soil to produce sustainable aviation fuel (SAF) from ethanol. This decision was influenced by the Inflation Reduction Act (IRA), signed into law by President Biden in August 2022.

The IRA, along with the Bipartisan Infrastructure Law (BIL), aims to funnel billions of federal dollars into developing clean energy, lowering greenhouse gas emissions, and incentivizing private investment to boost green industries and create jobs. The IRA offers tax credits, loans, and loan guarantees for companies involved in emissions-reducing technology.

One company benefiting from these laws is EV battery recycling company Ascend Elements, which has received BIL grants totaling $480 million to build a new facility in Kentucky. The IRA and BIL have led to a surge in investment in emerging climate technologies like clean hydrogen, carbon dioxide capture, and SAF.

While the IRA has supercharged investment in mature technologies like solar, EVs, and batteries, it has not significantly impacted wind and heat pumps. The fate of these laws hangs in the balance, with potential changes depending on the outcome of the upcoming US elections.

The US’s approach is also putting pressure on Europe to do more in the clean energy sector, with some European companies now building facilities in the US to take advantage of tax credits. As the US continues to lead the way in clean energy investment, the global audience watches closely to see the impact on the future of clean energy production worldwide.