DOE to repurpose 1.5M acres of coal mines

Through the Bipartisan Infrastructure Law passed last year, the U.S. Department of Energy's Office of Clean Energy Demonstrations (OCED) announced it is allocating $450 million in grants to repurpose 1.5 million acres of current and former coal mining sites as green energy projects.

"We share a belief, which is that the workers who powered the last century of industry and innovation can power the next one. They have the infrastructure, they have the expertise, they got the vision, they have the can-do attitude," said U.S. Energy Secretary Jennifer Granholm.

There are an estimated 17,750 mining sites across the country. The new initiative is designed to help project developers re-envision these types of locations to generate clean energy through solar farms, geothermal, hydropower, nuclear power plants, carbon capture technologies and more.

The Clean Energy Demonstration Program on Current and Former Mine Land calls for up to five projects (two of which must be solar) with scalable demonstrations of clean energy applications using mines either currently operating, inactive or abandoned.

Grant-winning projects will provide data and experience with replicable results that pave the way for broader national application and demonstrate excellent technical and economic viability.

The OCED is also offering no-cost technical assistance based on specific project needs to support concept development, planning, design, or execution. It will be made available to state and local governments, tribes, not-for-profit organizations, community groups, and academic institutions.

In addition to tax credits available through the 2022 Inflation Reduction Act, the initiative encourages project developers to take advantage of billions of dollars in bonuses on offers to incentivize more clean energy investment and stimulate recovery of communities hurt by the decline of coal production.

"These provisions will ensure that workers in energy communities reap the benefits of the clean energy economy they are helping to build,″ U.S. Treasury Secretary Janet Yellen said.

The bonuses will add up to 10% credit for every dollar of clean energy production facility investments in struggling energy communities and will require developers to pay competitive wages and use a sufficient proportion of apprentices on the job.

These investments are intended to strengthen local economies, preserve or create jobs, and protect public health and local ecosystems.

"Deploying clean energy projects on America's mine lands will unlock new opportunities for energy communities that have helped power our nation for generations, especially those in rural areas that have been the most affected by the energy transition," added Granholm. "Thanks to President Biden's Investing in America agenda, mining communities across our nation can access an unprecedented level of new funding to ensure they can help lead our clean energy future."

Repurposing and updating mines across the nation with this new initiative could generate enough energy to power 30 million homes.

This will support the Biden administration's aims to reduce reliance on coal and other fossil fuels, cut emissions in half by 2030, and achieve a net-zero economy by 2050.

New approaches and extensive private sector investments are needed to overcome today's most pressing barriers to clean energy development, preservation of natural and agricultural resources, and to achieve near net-zero mining operations where possible, as quickly as possible.

You can read the full funding opportunity announcement here and register for the FOA webinar on April 19 here.