The industrial sector accounts for ~23% of U.S. greenhouse gas emissions, driven largely by energy-intensive processes in steel, cement, and chemicals. As climate pressure mounts, decarbonizing this segment is now a national priority. Electrification of low- and medium-temperature heat can deliver 25–40% energy efficiency gains, while hydrogen-based alternatives are being piloted for high-temperature operations, albeit with 20–35% higher costs compared to fossil fuels.

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The U.S. Department of Energy’s $6.3 billion Industrial Demonstrations Program is funding CCS and clean heat tech pilots, aiming to cut sectoral emissions by 35% by 2035. Early CCS projects in Texas and Louisiana show capture costs falling to $58–$67/ton, down from ~$100/ton five years ago. However, 70% of industrial energy use still relies on natural gas, and less than 15% of U.S. plants have begun transition planning.

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Momentum is building, but scale depends on aligning grid capacity, carbon pricing, and regulatory certainty.

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  5 Key Takeaways:
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• Industry = ~23% of total U.S. GHG emissions
  
• Heat electrification yields 25–40% energy savings
  
• Hydrogen substitution costs 20–35% more than fossil fuels
  
• $6.3B DOE funding to support low-carbon tech rollouts
  
• CCS costs have dropped to $58–$67 per ton captured
  
  

Download the full report for cost benchmarks, policy tailwinds, and the emerging tech stack driving industrial decarbonization in America.

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