Colorado: Energy Office Awards $5.2 Million to Support Innovative Technologies That Reduce Industrial Emissions

Denver ~ Denver - The Colorado Energy Office (CEO) has announced a significant investment of $5.2 million in Clean Air Program (CAP) grant awards for industrial emissions reduction technology providers. This funding will support the deployment of innovative technologies in Colorado's industrial facilities, including electric heat pump boilers, carbon management, methane detection, and electrification measures.

The state of Colorado has set a goal to reduce emissions from the industrial sector by 20% by 2030 compared to a 2015 baseline. To achieve this goal and improve air quality, CEO has awarded a total of $29.3 million for industrial decarbonization projects. This includes $20.6 million in CAP funding and $8.7 million from the Colorado Industrial Tax Credit Offering (CITCO).

Governor Polis expressed his support for these investments, stating that "Colorado is leading the way by investing in innovative solutions to reduce air pollution and support healthy communities." He also emphasized the importance of clean energy technologies in reaching the state's emissions reduction goals.

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This round of CAP funding took a different approach than previous rounds by focusing on decarbonization technology providers rather than specific industrial facilities. This allows for a more widespread implementation of these technologies across eligible facilities in the state.

CEO Executive Director Will Toor highlighted the significance of supporting technology providers, stating that "with industrial facilities as a leading source of emissions in Colorado, we need innovative strategies to advance decarbonization technologies." By directly supporting these providers, businesses have an opportunity to bring their technologies to market while reducing financial risk for individual industrial facilities and improving air quality in local communities.

To receive an award, applicants were required to have an engagement plan to secure an eligible facility for their technology implementation. The state's investment is matched by over $1.6 million in private funding across four awardees.

The four projects receiving grants from this round include AtmosZero's plan to replace natural gas boilers with electric heat pump boilers, CREW Carbon's project to store carbon from a wastewater treatment facility, Trellisense's partnership with natural gas operators to implement methane detection and reduction technology, and Sun Metalon's plan to recycle metal on-site at an aluminum or steel facility using electricity instead of natural gas.

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CEO prioritized funding for projects based on their expected impacts on air quality and emissions reductions, as well as their demonstrated need for funding and use of additional resources. These projects are expected to avoid annual emissions equivalent to removing nearly 4,000 cars from the road while also reducing co-pollutants such as sulfur and nitrous oxides and particulate matter.

The funding for CAP comes from SB22-193 Air Quality Improvement Investments, which was sponsored by former Senator Stephen Fenberg, Senator Julie Gonzales, and Representatives Alex Valdez and Meg Froelich. This legislation was signed by Governor Polis in May 2022. CEO has previously awarded 14 CAP grants for various project types and facilities, including oil and gas transport and storage, wastewater treatment, and coal mines.

CEO plans to open another round of CAP funding for decarbonization technology providers in early 2026. More information will be available on the CAP webpage. Additionally, CEO continues to offer funding for industrial emissions reduction projects through CITCO, with applications opening again this Spring.

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