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The US Environmental Protection Agency (EPA) plans to finalize more than $200 million in grant funding in the coming weeks to accelerate the clean energy transition at three Great Lakes shipping ports. That action will obligate the federal government to pay roughly $3 billion in grants under the program, even if President-elect Donald Trump or the next Congress tries to repeal or block further action under the Inflation Reduction Act. The US EPA plans to move ahead swiftly to finalize grant agreements, which will have the effect of protecting the funds from a possible retraction.
“We will be awarding the grants in December of 2024 and January of 2025… so that money will be obligated on or before the end of this administration,” said US EPA Administrator Michael Regan.
Depending on the projects, implementation will occur over the next three to four years. Various projects among the 55 selected for grants last month have planning components and provisions for community engagement or workforce development.
Why Is Shipping Such an Important Target For Decarbonization?
Maritime decarbonization is the process of reducing greenhouse gas (GHG) emissions from the global maritime sector, with an overall goal of placing the sector on a pathway that limits global temperature rise to 1.5° Celsius. The maritime industry is “at the onset of a once-in-a century energy transition as it looks for ways to decarbonize rapidly through electrification and low-carbon fuels, optimization tools, and efficiency technologies,” according to the US Department of Energy.
The shipping industry accounts for roughly 3% of global greenhouse gas emissions. While the bulk of that is from ships themselves, port operations typically rely on diesel power for most of their energy. And ships often burn fuel to power equipment even while they’re in port.
The Inflation Reduction Act of 2022 provides EPA with $3 billion to fund zero-emission port equipment and infrastructure as well as climate and air quality planning at US ports. This new funding program will build on EPA’s Ports Initiative that helps US nation’s ports, a critical part of domestic infrastructure and supply chain, address public health, and environmental impacts on surrounding communities.
The Clean Ports Program goals are to:
- build a foundation for the port sector to transition over time to fully zero-emissions operations, positioning ports to serve as a catalyst for transformational change across the freight sector
- reduce diesel pollution (criteria pollutants, GHGs, and air toxics) in near-port communities
- help ensure that meaningful community engagement and emissions reduction planning are port industry standard practices
The EPA’s review process included ensuring that selected projects can achieve or exceed goals for reducing greenhouse gas emissions, as well as other pollution that can affect nearby communities, Regan said, as reported by Energy News Network. Those criteria air pollutants are ozone, particulate matter, carbon monoxide, lead, sulfur dioxide and nitrogen dioxide.
Sorry, Mr. Trump: These Great Lakes Ports Will Move toward Decarbonization — With Or Without You
The following Great Lakes ports were selected for grants last month under the Biden administration’s Clean Ports Program.
Cleveland-Cuyahoga County Port Authority: The $94 million grant announced for the Cleveland port is the largest it has ever received and will help it build on work that’s already underway to electrify and decarbonize its infrastructure. In Cleveland, a significant portion of work under the new grant will be taking place even as renovation of the Port of Cleveland’s Warehouse A and electrical work take place under its current projects.
The work is especially important for Ohio, which has lagged other Midwest states and regions in deploying strategies to reduce greenhouse gases, said Valerie Katz, deputy director for Cuyahoga Green Energy. “Our regional decarbonization efforts will reduce environmental exposure to toxic air pollutants for downstream Ohio communities.”
Funding for the Port of Cleveland will encompass work for electric cargo-handling equipment and vessels that serve the port, along with solar generation and battery storage, charging infrastructure, and shore power for vessels. Project partners include Logistec USA, the commercial operator for day-to-day operations, as well as the Great Lakes Towing Company, which will build two electric tugboats.
Detroit/Wayne County Port Authority: The Detroit/Wayne County Port Authority will get approximately $25 million for solar panels, charging infrastructure, and electric cargo handling equipment. Funding for the Port of Detroit will go toward electric cargo-handling equipment, some vessels and railcar movers, along with charging infrastructure and solar generation. Part of the money also will be used to develop a roadmap for adding EV and hydrogen fueling infrastructure. The Detroit/Wayne County Port Authority is part of the Midwest Alliance for Clean Hydrogen, or MachH2, which was selected last year for $1 billion in Department of Energy funding for a hydrogen hub.
Like its counterpart in Cleveland, the Detroit/Wayne County Port Authority had already begun working on plans to move to cleaner energy sources for Scope 1 and Scope 2 emissions. But zero emissions equipment to move cargo is new in the US shipping industry and is still generally more expensive than fossil-fueled counterparts.
Illinois International Port District: Funding for the Illinois International Port District will cover a variety of projects for its three ports, including hydrogen fueling infrastructure, solar energy and battery storage, and hydrogen and electric cargo handling equipment. $95 million will be directed to the Illinois EPA for solar, battery storage and hydrogen-related investments at the Illinois International Port District serving greater Chicago. Hydrogen and electric locomotives also are on EPA’s program selections list. The Illinois EPA is the lead partner for the grant work.
Final Thoughts About Great Lakes & Other Ports: Moves Toward Decarbonization
Planning work on emissions inventories can position other ports to move ahead with clean energy in the future, with the Great Lakes serving as a model.
Time is of the essence. A new report published from the World Economic Forum shows that the business case for investing in climate action is solid, with strong returns. At carbon prices in line with net zero requirements, almost all sectors could abate over 50% of their emissions, with some achieving net zero.
The Alliance of CEO Climate Leaders report, entitled “The Cost of Inaction,” states that the climate crisis is already having profound effects on the global economy with climate-related damages having surpassed $3.6 trillion since 2000, more than doubling in 20 years. Climate inaction means missing out on opportunities, as the global green economy is expected to expand from $5 trillion in 2024 to $14 trillion by 2030.
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