MITCHELL – Fourteen months after being awarded up to $500 million in federal funds, Heidelberg Materials’ carbon capture project in Mitchell has lost its funding from the U.S. Department of Energy (DOE). Energy Secretary Chris Wright recently canceled nearly $4 billion in project grants, primarily for carbon capture initiatives, including the grant for the Mitchell plant.
Heidelberg Materials issued a statement confirming the termination of the award, noting that the DOE indicates the decision can be appealed. The company is currently evaluating this option as it considers the next steps for the Mitchell project.
The cancellation of this grant has significant implications beyond Heidelberg Materials, impacting the city of Mitchell, which anticipated positive economic effects from the creation of construction jobs.
Heidelberg Materials had planned to construct a full-scale carbon capture, transport, and storage facility at its new Mitchell plant, aiming to capture approximately 2 million metric tons of CO2 annually. The company had set a goal for the Mitchell plant to be carbon neutral by 2030, the same year the carbon capture facility was slated to be fully operational.
Phase 1 engineering and design work for the project has been ongoing, and Heidelberg has informed local leaders that the construction of the carbon storage facility was expected to create between 600 and 800 construction jobs.
Decarbonization is a top priority for Heidelberg Materials, which has 13 carbon capture projects globally. The Mitchell project would have been its first in the United States. The company emphasizes that government support is crucial for “first-mover large-scale projects such as Mitchell” to assess, implement, and operate these initiatives, ultimately leading to cost reductions and broader industry deployment.
The Mitchell plant has seen substantial investment, with a new $600 million state-of-the-art facility opened in 2023 that has tripled its previous capacity and reduced energy consumption and greenhouse gas emissions.
Information: Southern Indiana Business Report
