Carbon Utilization 101

Carbon dioxide (CO₂) is a resource to be harnessed, from oil production and agriculture to critical minerals and advanced materials. Carbon is a fundamental building block of modern society. For decades, the United States has used carbon dioxide for energy production through enhanced oil recovery (EOR). Today, American innovators are expanding carbon’s role as a valuable domestic resource by using it to produce fuels, strengthen supply chains and create the materials that underpin our economy.

The market for products utilizing CO₂ is rapidly emerging as a key part of America’s industrial and energy sectors, with global revenue projected to exceed $1 trillion by 2040. As carbon capture and removal technologies scale, increasing the supply of CO₂, new utilization opportunities are emerging across the U.S. economy. Countries like China are investing in carbon capture, utilization and storage (CCUS) technologies and advancing demonstration-level projects, positioning themselves to dominate markets for products that rely on CO₂ as a key input. To remain competitive, the U.S. must continue to support innovation and scale carbon utilization technologies at home, leveraging our existing capabilities to compete and lead globally.

Carbon Capture and Utilization

What is Carbon Utilization?

Carbon utilization, also known as carbon use or carbon conversion, refers to the use of captured CO₂ from industrial sources or the atmosphere as a feedstock to produce fuels, materials, chemicals and other valuable commodities. In practice, CO₂ can serve as a building-block ingredient to create new products or as a working fluid in industrial processes that improve efficiency and unlock additional resource recovery. CO₂ can be used across a wide range of applications and sectors, supporting the production of goods that are central to the U.S. economy.

Carbon Utilization in the United States: Projects

Carbon Use Projects in the United States: Announced, In Development, and Operational

Types of Carbon Uses

American Energy Leadership: Enhanced Oil Recovery

Enhanced oil recovery using carbon dioxide (CO₂-EOR) strengthens domestic oil production, boosting energy security at home and for U.S. allies by reducing reliance on oil from adversarial nations. CO₂-EOR is the most established use of captured CO₂ and a key contributor to domestic oil production, enabling the recovery of 245,000 barrels of oil per day in the U.S. This process injects CO₂ into mature oil fields to boost oil production and extend the life of existing assets, improving resource recovery in a cost-effective manner. During this process, much of the CO₂ remains permanently stored underground, while the rest is recycled in a closed loop to support additional recovery. To make this possible, U.S operators inject approximately 68 million tons of CO₂ annually for CO₂-EOR.

Looking ahead, rising energy demand from reshored manufacturing, AI and data centers, combined with a growing global need for reliable American oil, will require a stable, scalable supply of domestic energy resources. Next-generation CO₂-EOR technologies have the potential to unlock more than 60 billion barrels of additional oil using advanced techniques, including those that could require the injection of larger volumes of CO₂. Ensuring access to a reliable supply of CO₂ will be critical to sustaining and expanding this production, supporting domestic and global energy security.

Critical Mineral Independence

Similar to EOR, where CO₂ can be used to bolster energy security, CO₂ can also be used to extract additional critical minerals from the earth through what is often described as CO₂-based mineral recovery. At ClearPath, we refer to these processes and technologies as Enhanced Mineral Recovery (EMR).

The U.S. remains 100 percent reliant on imports for 13 of the 60 minerals deemed “critical” by the U.S. Geological Survey (USGS), and EMR technologies could support domestic critical mineral production and strengthen U.S. supply chains.

EMR encompasses a range of technologies that use advanced techniques to retrieve more minerals and unlock previously inaccessible resources. These approaches can be deployed both underground (in-situ) and above ground (ex-situ) and are beginning to receive early-stage support from the Department of Energy (DOE) through programs such as ARPA-E’s MINER program.

In in-situ applications, compressed CO₂, typically dissolved in water, is injected into deep rock layers where critical minerals are found. The CO₂ then reacts with the minerals in the rocks to break them down and release the target minerals. While the CO₂ is permanently stored underground, the leached minerals are pumped back to the surface, giving us access to additional critical minerals that were once locked underground.

In ex-situ applications, CO₂ accelerates chemical reactions that extract valuable minerals or convert materials from industrial byproducts like mine tailings or steel slag into stable compounds in processing facilities, improving recovery rates. For example, CO₂ can enhance the recovery of phosphoric acid, a key input for fertilizers, from phosphate, which was recently designated a U.S. critical mineral.

Agriculture Innovation

By 2050, the world will need up to 60% more food to support a growing global population, making agricultural productivity and innovation more important than ever. Agricultural innovators are leveraging captured CO₂ to support controlled growing environments and develop fertilizers and other inputs that increase crop yields, improve efficiency and create new revenue opportunities.

For decades, farmers have used supplemental CO₂ in greenhouses to enhance plant growth, significantly increasing plant yields. For example, by increasing CO₂ levels in highly-controlled environments like greenhouses, traditionally via compressed CO₂ tanks or CO₂ generators, farmers can increase crop yields by 40-100%. In addition, CO₂ can be converted into chemicals for different soil amendments that provide a wide array of agricultural benefits. Specifically, CO₂ is used to produce urea fertilizer, which improves soil health and nutrient retention. By utilizing CO₂, farmers can strengthen the agriculture sector, enhance food security and position the United States as a global leader in agricultural innovation.

Building with Carbon

In the manufacturing sector, CO₂can be used to produce stronger, more durable materials like concrete and other industrial products, without sacrificing quality or affordability. Captured CO₂ can be injected into fresh concrete, mineralized to form stable materials and permanently store the CO₂, or used as a feedstock for other industrial materials. Because many of these technologies can be integrated into existing cement production facilities, they offer a pathway to rapid, scalable deployment across the construction sector.

Expanding CO₂ utilization in cement and concrete can help strengthen domestic supply chains to meet growing global demand. Similarly, using CO₂ as a feedstock for plastics, which exist all throughout our supply chains, can help domestic plastic production remain stable, particularly when petrochemical feedstocks are less secure. Utilizing CO₂ as a feedstock creates more resilient supply chains for products we rely on, while also enhancing U.S. manufacturing competitiveness by improving product performance and enabling American-made materials to compete globally against higher-emission producers like China.

Carbon Fueling America

Captured CO₂ can be used as a key ingredient to produce synthetic fuels and chemicals, creating new pathways to supply reliable, domestically produced energy. Innovators can convert CO₂ into liquid fuels by combining it with hydrogen or using electricity. These processes can produce sustainable aviation fuel, methanol, synthetic diesel and other fuels compatible with today’s engines and infrastructure.

Beyond commercial markets, CO₂-derived fuels present a strategic opportunity for national defense. Synthetic fuels can be produced on demand in remote or high-risk environments, minimizing the risks associated with transporting fuel into contested areas and enabling greater operational flexibility for the U.S. military. The Department of War (DOW), through the Defense Innovation Unit (DIU), has supported research, development, and demonstration (RD&D) of these technologies. For example, companies have partnered with the DOW to explore and demonstrate the application of these fuel technologies across military operations.

By leveraging CO₂ as a feedstock for fuel production, the U.S. can diversify its energy supply, keep production at home and strengthen our national security.

Benefits of Carbon Utilization

Carbon utilization transforms captured emissions into valuable products, unlocking new market opportunities while strengthening American energy, manufacturing and technology leadership:

Market Opportunities for American Innovators – Today, roughly 250 million tons of CO₂ are utilized annually, primarily for EOR and to produce fertilizers, but emerging technologies could more than double or triple this demand for reliable CO₂ to 430-840 million tons by 2040 globally. Key markets for growth include construction aggregates and CO₂-cured cement, as well as fuels made from CO₂. American companies are well-positioned to lead in these emerging markets, driving innovation, creating jobs and strengthening U.S. economic competitiveness.
U.S. Energy Security – CO₂-EOR bolsters U.S. energy security by unlocking additional domestic energy resources. American oil reduces allies’ reliance on foreign suppliers, stabilizes global markets and helps meet energy needs at home and abroad. At a time when energy security is increasingly tied to national security, EOR provides a pragmatic pathway to strengthen both.
Clean, Firm Power – Demand for clean, firm power is surging. Natural gas and coal generation paired with carbon capture will play a key role in delivering reliable, affordable, clean energy. Carbon utilization improves the economics of these carbon capture projects by creating additional revenue streams from captured CO₂, particularly where storage is limited. This reduces costs and enhances project viability, supporting the scale-up of dependable, clean power.
Affordable, Reliable and Competitive Products – Products made with captured CO₂ can provide the U.S. with economic and supply chain advantages on a global scale. In some cases, such as building materials, CO₂-based products are already commercially competitive, delivering improved performance and potential cost advantages. The United States is well-positioned to lead in these emerging markets by leveraging captured CO₂ to produce high-value, globally competitive products while strengthening America’s manufacturing base.

Policy Recommendations

Preserve and Maintain Improvements to 45Q: The Section 45Q tax credit provides financial incentives per ton of CO₂ securely utilized or stored. Recent improvements under the Working Families Tax Cuts created parity across utilization, EOR and storage — supporting technologies that turn CO₂ into a valuable commodity. Preserving the improved 45Q tax credit will strengthen U.S. manufacturing competitiveness, enhance energy security and reinforce American energy leadership.

Increase the Reliable Supply of CO₂: Access to consistent, high-quality CO₂ is needed to unlock the full potential of carbon utilization technologies. Investing in RD&D of carbon capture and carbon dioxide removal (CDR) technologies will help ensure a scalable, reliable supply of usable CO₂ from a diverse range of sources, including point-source capture, direct air capture and biogenic processes. Legislation supporting innovation, commercialization and deployment of these technologies, such as the Carbon Removal and Emissions Storage Technologies (CREST) Act of 2023, will accelerate cost reductions, improve efficiency, bring the most competitive technologies to market and enable broader market adoption.

Expand Carbon Utilization RD&D: Targeted federal RD&D is critical to advancing early-stage carbon utilization technologies and unlocking private investment. The Energy Act of 2020 authorized DOE”s Carbon Utilization Program, now housed within the Office of Hydrocarbons and Geothermal Energy (HGEO), to evaluate novel uses for CO₂ and demonstrate carbon utilization technologies across a range of industrial sectors. Programs like ARPA-E’s MINER initiative support research on using CO₂ to unlock critical minerals, while initiatives such as the Carbon Dioxide Removal Purchase Prize help catalyze technologies that can provide and sustain a reliable, scalable supply of CO₂. DOE could also coordinate with agencies such as the USGS and the U.S. Department of Agriculture (USDA) to advance cross-cutting carbon utilization opportunities across mineral, land and agricultural systems.Expanding these federal efforts will accelerate technology deployment and commercialization, broaden market opportunities and strengthen U.S. competitiveness.

Build CO₂ Pipeline Infrastructure: Expanding the nation’s CO₂ pipeline network is essential to scaling carbon utilization technologies and connecting supply with demand. Projects require access to reliable, affordable CO₂, which depends on a robust and well-connected pipeline system. Legislation supporting CO₂ pipeline safety, R&D and streamlined interstate permitting will modernize regulations, reduce permitting bottlenecks and unlock private investment for CCUS infrastructure. This includes legislation like the PIPES Act of 2025 and the PIPELINE Safety Act of 2025, which would reauthorize the Pipeline and Hazardous Materials Safety Administration (PHMSA), as well as the Next Generation Pipelines Research and Development Act, which supports the development of advanced pipeline technologies and materials. Strengthening this infrastructure will enable more projects to move forward and reinforce U.S. energy and industrial leadership.

Made in America, with Carbon

Carbon dioxide (CO₂), once seen as an industrial by-product, is becoming a valuable American commodity. It was first used in the 1970s for enhanced oil recovery (EOR), injected underground to extract additional crude oil from oil reservoirs. While EOR remains an effective tool, the range of use today for captured CO₂ has expanded – strengthening the economy and supporting sectors at the heart of U.S. growth, including fuels, construction and agriculture.

The market for products utilizing CO₂ is rapidly emerging as a key part of America’s industrial and energy economy, with global revenue projected to exceed $1 trillion by 2040. Many companies are now turning innovation into a competitive advantage, transforming by-products into feedstock for carbon-based materials, fuels, chemicals and even consumer goods like On Cloud shoes, Lululemon clothing and diamonds. This development positions the U.S. as a leader in decarbonizing different sectors, and shows that economic growth and reducing emissions go hand-in-hand. However, realizing the full scale of this $1 trillion opportunity requires a policy framework that unleashes the private sector to innovate and helps solidify the U.S. as a global leader in emerging, carbon-based markets.

Carbon utilization is a space that has also garnered a lot of bipartisan support over the years. The foundation for this success was laid in the Energy Act of 2020 and signed into law during President Trump’s first administration, supporting the research and development of carbon management technologies. Building on that momentum, the One Big Beautiful Bill Act of 2025 provided parity in the Section 45Q carbon capture tax credit, ensuring that American innovators utilizing CO₂ for EOR and other commercial products are finally on a level playing field. With this commonsense policy in place, American entrepreneurs finally have the long-term certainty needed to deploy capital and build the next generation of industrial energy leaders right here on American soil.

The best part is that American ingenuity is starting to deliver results. Companies across the country are already utilizing these technologies to turn carbon into a competitive advantage. Here are a few examples of American-led innovation in action:

Fortera: CO₂in Industrial Materials

One of the most transformative areas of carbon utilization is in industrial materials. Captured CO₂ is increasingly used as a feedstock to create building materials, polymers, textiles and advanced carbon products, supporting our infrastructure and economy while reducing industrial emissions. California-based Fortera has created a cement process that captures CO₂ emissions directly from the cement plant kiln and mineralizes it into a stand-alone cement. Fortera’s process can be added onto existing cement production facilities, enabling a retrofit approach that minimizes disruption while dramatically reducing emissions. The resulting products either enhance or replace traditional cement, offering cost and performance competitiveness that makes low-carbon building materials a scalable reality.

Fortera’s new plant in California, co-located with CalPortland’s cement plant, demonstrates this in action, capturing industrial CO₂ and transforming it into cement with up to 70% lower CO₂ emissions. With recent investment from Microsoft, the plant plans to scale production from 15,000 tons to 400,000 tons of cement per year, which is enough to support the construction of over 20,000 homes. They recently completed their first major pour, supplying low-carbon cement to Simpson University, located near the plant. Using carbon in industrial materials enables America to continue to build while lowering emissions.

Fortera – Low-Carbon Cement

Source: Fortera

AIRCO: CO₂ in Aviation Fuel

Another exciting area of application for captured carbon is the production of synthetic aviation fuel directly from captured CO₂. AIRCO, formerly Air Company, is leading the charge with its technology – an advanced carbon conversion platform that transforms captured carbon dioxide and hydrogen into high-performance synthetic fuels. These fuels are not only viable for commercial aviation but also tailored for defense applications, given their on-demand production in remote areas, supporting vehicles across air, land, and sea through a strategic partnership with the U.S. Department of War. They have also partnered with major airlines, including Virgin Atlantic and JetBlue, and recently unveiled a fuel plant in New York City. AIRCO’s fuel is able to seamlessly drop-in as a solution and meets all jet fuel requirements. By using CO₂ as a primary feedstock for a valuable asset like jet fuel, America can diversify the supply chain, supporting energy security and national defense and reducing emissions simultaneously.

Twelve: Everyday CO₂ Products

The “Made in China” tag on everyday items has become all too familiar, but utilizing CO₂ in the manufacturing process could bring back the supply chain for more products to be “Made in USA.” Twelve’s CO2Made products are made using chemicals and materials from captured CO₂. These products are functionally identical to their traditional counterparts, making them easy drop-in replacements. Using locally captured CO₂ in the manufacturing process also promotes domestic production of many products that are usually manufactured overseas.

Twelve has already partnered with household name brands, including Procter & Gamble, Mercedes, and Shopify, to develop CO2Made versions of existing products, as well as NASA and the U.S. Air Force to deploy its synthetic fuel. Twelve has raised over $900 million in funding to commercialize its technology and build its first plant in Washington. They have recognized the growing demand for low-emissions products and are capitalizing early on the increasing value of CO₂ as a commodity.

What’s Next for Carbon Utilization

As the U.S. competes with China and others for energy dominance and a competitive advantage in products, utilizing CO₂ to expand domestic supply chains and create resources for energy production is essential to getting ahead. Countries and companies that leverage advanced energy solutions to create energy abundance and product reliability in a time where demand for infrastructure and power is on the rise will be set apart in the global tech race. Innovations that integrate CO₂ utilization seamlessly into existing industries will simultaneously strengthen and decarbonize the economy.

While 45Q parity has leveled the playing field, further research and development, and public-private partnerships are needed to connect American industry to these emerging markets. To fully capitalize on captured CO₂ and turn it into an economic advantage, bipartisan solutions like legislation introduced by Senator Collins (R-ME) in the 118th Congress are needed to guide innovation, build infrastructure and bring competitive technologies to market. The 119th Congress has the opportunity to advance these bipartisan blueprints to power the next generation of American carbon commodities and reduce global emissions.

Energy Financing Power: America vs. China

Clean Baseload Power: A Politically Durable Energy Agenda

ClearPath was founded in 2014 to fill the whitespace in the energy debate. Plenty of technology and industry-specific organizations existed. But who was working on an American innovation agenda and policy strategy focused on building clean, baseload energy? And, more specifically, who were the conservative voices?

That’s where ClearPath founder Jay Faison stepped in: “I want conservatives to be leaders on clean energy—from nuclear to hydropower to clean fossil fuels—both to improve the environment and strengthen real conservative leadership.”

Today, politics remain polarized, and there is still healthy debate over which technology is the best, most affordable way to meet growing demand.

Instead of falling into the false choice trap of fossil fuels versus renewables, or the economy versus the environment, we espouse choosing markets over mandates and innovation over regulation.

And now, as the post-One Big Beautiful Bill dust settles, an actual clear path for a politically durable American energy system has emerged.

Amidst the political noise, a quiet, bipartisan consensus has formed around a critical piece of America’s energy future: clean, firm, 24/7 energy technologies.

Both parties recognize that if we want to maintain a reliable grid, meet growing electricity demand to win the AI race, and reduce emissions, we need firm, always-on clean power.

This is where technologies like advanced nuclear, carbon capture, hydropower, fusion and enhanced geothermal systems come in. These solutions can provide round-the-clock electricity. And crucially, they have gained champions on both sides of the aisle. Recent federal policies prove the point. The Energy Act of 2020, which had strong bipartisan support in Congress and was signed into law by President Trump, authorized research, development and deployment policies for clean, firm power.

The Infrastructure Investment and Jobs Act of 2021, passed with bipartisan support and signed by President Biden, dedicated billions to fund demonstrations of those technologies authorized in the Energy Act of 2020.

The Inflation Reduction Act, driven by Democrats in 2022, and One Big Beautiful Bill, by Republicans this year, both have one thing in common — support for new nuclear, long-duration energy storage, carbon capture, geothermal and hydropower, or, as we’ve already said…clean, 24/7 reliable energy.

At the same time, Republican-led states like Wyoming, Utah, Louisiana and West Virginia are actively partnering with private developers to host small modular nuclear reactors and carbon capture projects, while Democratic strongholds like California, New York and Michigan are extending the life of their nuclear plants to keep clean, reliable power on the grid.

The motivation is not ideological; it’s practical. A manufacturing renaissance, more electrification of buildings and industry, and a data-driven economy all require massive amounts of reliable electricity. Without 24/7 power, renewables alone cannot meet that demand without risking blackouts or skyrocketing costs. And while we want to see more fossil fuel power plants with carbon capture get built, supply chains and infrastructure challenges make meeting the entire demand challenging.

Policymakers in both parties are seeing the same reality: the U.S. must invest in American-made technologies that can run all day, all year.

The alignment is not just good for political discourse; it’s good for American energy dominance. China and Russia are aggressively deploying advanced nuclear and other clean energy infrastructure around the world. To beat them, we must diversify our innovations and accelerate the deployment of technologies at home while opening up new global buyers of American-made energy.

At the same time, the drumbeat for modernizing energy permitting is getting louder and for good reason. If we want America to lead the world and develop more of the clean, baseload power that has bipartisan support, developers must have a better path to obtaining permits.

Energy policy may never be completely free from partisanship, but we should not lose sight of the common ground that now clearly exists. When it comes to keeping the lights on, powering the economy and new AI, and lowering global emissions, clean 24/7 energy is one issue where America can still move forward together.

20 Years Since the Energy Policy Act of 2005

It is hard to believe that this month marks 20 years since Congress passed the Energy Policy Act (EPAct) of 2005. EPAct 2005 focused on increasing energy supplies, building energy infrastructure and driving investment in American innovation. While it was far from perfect, EPAct was bold and set the stage for U.S. energy dominance. Congress can build on the lessons from EPAct 2005 and continue to deliver energy policy that moves our nation forward.

When EPAct 2005 was crafted, the country was facing complex energy issues. We were grappling with the impacts of the 2003 Northeast Blackout, which affected more than 50 million people and caused an estimated $10 billion in economic losses. There were growing concerns about too much dependence on foreign oil and gas. The nuclear industry was in need of a serious revival to meet its potential. Innovative technologies were struggling to get the financing needed to achieve speed and scale. Congress took these challenges and turned them into opportunities.

Some key provisions of EPAct 2005 included:

Mandatory reliability standards and measures to modernize the transmission infrastructure to improve the grid;
Creation of the Loan Guarantee Program (the precursor to today’s DOE Loan Programs Office (LPO)) to help support investments in innovative technologies, particularly nuclear power;
Expedited siting and permitting of Liquified Natural Gas terminals for more access to markets;
Streamlined hydraulic fracturing regulations to increase domestic oil and gas; and
Tax and R&D support for various resources, such as geothermal, clean coal technologies, advanced nuclear energy, fusion and hydrogen to diversify supplies.

Today, the saga of challenging energy issues continues. Our grid must be ready to meet increased demand driven from data center growth, industrial reshoring and widespread electrification while also dealing with aging infrastructure, the complexity of integrating variable resources and an evolving regulatory landscape. Permitting hurdles remain a major barrier to building critical energy infrastructure. Innovative technologies still need strong public-private partnerships to bridge the commercialization gap and scale to competitive solutions. These challenges set the stage for the next opportunity for energy leadership.

Forecast of Data Center Demand Growth by 2030

Adapted from DOE’s Resource Adequacy Report (2025), underlying data from EPRI, McKinsey & Company, LBNL, S&P

Congress has shown in EPAct 2005 as well as the Energy Act of 2020 that it can deliver broad, bipartisan energy policy. It is time for an updated big, bold, bipartisan energy bill.

The following are examples of policies that can address today’s energy challenges:

Streamline Permitting: Outdated permitting processes are jeopardizing critical infrastructure development. Bills like the SPEED Act, introduced by House Natural Resources Chairman Bruce Westerman (R-AR) and Rep. Jared Golden (D-ME), can help modernize NEPA to reduce duplication, increase transparency and reform judicial and litigation practices. The administration and legislation proposals like the FREE Act introduced by Sen. Lummis (R-WY) and Rep. Maloy (R-UT) have also highlighted the potential for using a regulatory tool called permit-by-rule to expedite permitting, which is a process that allows certain activities to proceed without undergoing a full individualized permit review, as long as they meet predefined criteria.

Improve the Grid: American energy security, AI leadership and manufacturing competitiveness require a robust transmission system. Transmission siting and permitting improvements could streamline grid expansion while balancing and fully respecting states’ roles in the process. Innovative grid technologies and transformer manufacturing deployed at scale would also help optimize the grid. Safeguarding the grid, such as through the work of DOE’s Office of Cybersecurity, Energy Security and Emergency Response (CESER), is also critical.

Strengthen Pipelines: A modern pipeline system is essential to deliver reliable, affordable energy to homes and industry, including AI data centers. Policy ideas like the Next Generation Pipelines Research and Development Act, which passed the House on a bipartisan basis in the 118th Congress and was reintroduced in April 2025 by Reps. Randy Weber (R-TX) and Deborah Ross (D-NC) would support the build-out of all types of pipelines, such as natural gas, LNG, petroleum, carbon dioxide, hydrogen and more. There are also opportunities to update some safety regulations for pipeline infrastructure.

Expand Critical Minerals: Critical minerals are essential to America’s energy security, industrial base and national defense. President Trump’s March 2025 Executive Order prioritized U.S. mineral production and directed DOD and DOI to accelerate support for mining and processing. There have also been several legislative efforts in the 118th and 119th Congress that seek to accelerate permitting for mining projects, boost R&D and strengthen strategic mineral partnerships and finance domestic mineral supply chains. Some examples include: the Critical Mineral Consistency Act, the Mining Regulatory Clarity Act, the Unearth Innovation Act and the STRATEGIC Minerals Act.

Expand Nuclear: Building more clean, firm nuclear power is essential for national and economic security. Bills like the Accelerating Reliable Capacity (ARC) Act introduced in the 118th Congress by Senator Risch (R-ID), or a similar policy, can spur nuclear deployment by addressing cost uncertainty and reducing investment risk. Also, continued funding for the DOE’s Advanced Reactor Demonstration Program (ARDP), first authorized in the Energy Act of 2020, has supported ongoing nuclear energy projects and their fuel supply chain.

Promote Geothermal: Next-generation geothermal technologies have the potential to expand beyond the Western U.S. to provide emissions-free, reliable baseload power all across the country and leverage up to 200,000 existing American jobs in the oil & gas sector. The Trump DOE has prioritized funding for project demonstrations. Innovators have already shown great success, like reducing drilling times by more than 70 percent. Bills like the GEO Act, introduced in the 118th Congress by Sens. Lee (R-UT) and Heinrich (D-NM), can streamline federal permitting requirements and apply best practices to unlock additional deployments of these next-generation projects. The energy unlock that EPAct 2005’s categorical exclusion provided for certain oil and gas activities on federal lands could be replicated for geothermal.

Reshore Manufacturing: Meeting infrastructure needs requires producing and deploying core building materials at scale and speed. Bills like the Concrete and Asphalt Innovation Act (CAIA), introduced in March 2025 on a bipartisan basis by Sens. Coons (D-DE) and Tillis (R-NC), are designed to bring innovative cement and asphalt technologies to market faster, increase domestic production and meet the demand for 1 million tons of cement by 2028, triggered by AI data center development.

Accelerate Carbon Technologies: Industrial innovation includes carbon management innovation. Bipartisan bills like the Carbon Removal and Emissions Storage Technologies Act (CREST), introduced in the 117th and 118th Congresses, would authorize DOE’s carbon removal innovation efforts and help keep American companies ahead of global competitors. By driving private investment and reducing costs to meet growing demand, CREST can help build a trillion-dollar American industry capable of delivering gigaton-scale removals by 2050.

Strengthen Global Leadership: In order to advance U.S. national interests, level the playing field for American businesses and solidify global leadership in key energy sectors, strategic enhancements are needed at the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of the U.S. (EXIM). The DFC authorization expires in October 2025 and the EXIM authorization expires in December 2026. These are financing tools designed to secure U.S. energy leadership and push back against China’s aggressive, state-funded energy expansion.

The Future of Industry: Made in America

America’s success is historically rooted in its ability to innovate. American innovation doesn’t just change our country — it reshapes the world. From the steam engine to the internet, inventions from the United States have shaped modern civilization. This is no different in the energy sector, where the shale revolution supercharged economic growth, transforming America from an energy-dependent nation to the world’s leading producer of oil and natural gas. This shift drove down consumer costs, strengthened national security and positioned the U.S. as a global energy powerhouse.

Today, that same spirit of innovation is shaping the next era of energy leadership. American entrepreneurs and engineers are developing breakthroughs in advanced manufacturing and carbon innovation that will define the future of affordable, reliable and clean energy and products.

To lead the global market in clean materials, like steel and concrete, and carbon management technologies, America needs a strategy that builds industries here and sell abroad. That means leveraging our research and development (R&D) investments with smart, strategic bets in demonstration and commercialization work that is key to ensuring the future of industry is made in America.

History Offers a Roadmap — and a Warning

We’ve seen before what happens when America gets innovation right. In the 1960s, the U.S. government set an ambitious goal through NASA’s Project Apollo: to land Americans on the moon and return them safely to Earth. To accomplish this, the government partnered with MIT to develop the Apollo Guidance Computer, a feat requiring then-untested integrated circuits, also known as microchips.

Through smart public-private collaboration, federal procurement of these chips scaled production, improved quality, and rapidly drove down costs. NASA was the primary buyer, initially paying $1,000 per chip in 1962. Just a year later, costs fell to $15, and by 1969, a vastly superior chip cost just $1.58. This deliberate, early support catalyzed a semiconductor industry that today is valued at $627 billion and underpins everything from smartphones to national defense systems.

But there’s also a cautionary tale: the solar industry. Solar photovoltaic technology was invented in the U.S. to support the space race and diversify energy sources, but was not supported by public-private collaboration, such as manufacturing incentives or early market creation. America led on solar R&D but missed its chance to capture returns by failing to pair innovation with long-term incentives and market demand. As a result, over the past two decades, China aggressively captured the solar manufacturing base and supply chain, investing heavily in raw materials processing and production. Today, China controls over 80% of the global solar panel and battery storage manufacturing and supply chain.

What it Takes: Innovation at Home, Not Abroad

Today, America has the opportunity to lead globally in carbon management and industrial manufacturing, technologies key to the production of steel, concrete and clean energy. Breakthroughs in carbon management and industrial manufacturing technologies require smart public-private partnerships, and with clear, stable policy signals to get off the ground. For example, the recent passage of the One Big Beautiful Bill Act reaffirmed support for carbon capture by preserving, and in some cases strengthening, the federal 45Q tax credit. This cornerstone policy provides certainty and incentives for American companies to invest, build and lead in next-generation carbon management solutions.

The new law maintains the 45Q credit for point-source capture at $85 per ton and direct air capture (DAC) at $180 per ton for dedicated geologic storage. Critically, it also provides parity for CO₂ sequestered through enhanced oil recovery or utilization with the credit value for dedicated geologic storage, raising the rate from $60 to $85 per ton for point sources and from $130 to $180 per ton for DAC. This change unlocks new market pathways for carbon-to-value technologies that are being explored by sectors such as oil and gas, aviation and agriculture. It preserves transferability, updated inflation adjustments and introduces new restrictions on foreign entities of concern, ensuring American tax incentives serve American strategic interests.

In addition to market incentives like 45Q, continued support for demonstration-scale projects at the Department of Energy (DOE) is essential to advance American-made technologies, bridge the commercialization gap and ensure our investments deliver real returns through competitive, market-ready solutions. Programs such as the carbon capture demonstration program, the direct air capture hubs and the industrial demonstrations program have been vital to advancing cutting-edge technologies that will shore up more clean energy and unleash American energy dominance.

These programs help de-risk early-stage projects, attract private capital and ensure American companies, not strategic competitors like China, lead in next-generation energy solutions. The demand is there. In a powerful display of market enthusiasm for the DOE industrial demonstrations program in 2024, $6 billion in federal industrial demonstration funding attracted $60 billion in industry applications and helped mobilize $14 billion in private investment, accelerating the scale-up of next-generation clean manufacturing technologies.

The Stakes for American Energy and Industry

Carbon management technologies don’t just reduce emissions, they’re powerful economic drivers. These innovations create new markets for American energy, fuels and industrial products, while supporting thousands of high-paying, durable jobs in engineering, manufacturing and construction.

In the Mid-Continent and Mid-Atlantic regions alone, the deployment of carbon capture technology across industrial and electric power generation facilities has the potential to create an annual average of nearly 86,000 investment jobs and close to 57,000 operation jobs over the next 15 years. Additionally, scaling CDR technologies in the United States is estimated to create between 95,000 and 130,000 jobs per year. By converting captured CO₂ into valuable fuels, building materials and industrial products, we can expand U.S. market access, boost manufacturing competitiveness and secure American leadership in industries poised to generate over $1 trillion in carbon utilization revenues by 2040.

Beyond CCUS and CDR, global demand for clean industrial products is expected to grow 4.5 times by 2030. American manufacturers produce goods twice as clean as the global average and four times cleaner than China, and new industrial innovations will keep the U.S. ahead.

Sector-specific manufacturing output and emissions shares for energy-intensive manufacturing in the U.S., China and Rest of World

Source: Carbon Leadership Council, America’s Carbon Advantage 2025

Build Here, Win Everywhere

Supporting innovation empowers the private sector, reduces long-term taxpayer risk and ensures America’s energy system remains the most reliable and competitive in the world. But to win, we need to set the rules of the road, as competitors like China shape policies to benefit their industries. America has the advantage, and we should use it. By backing smart, targeted demonstration-scale federal programs at the DOE and incentives like 45Q, Congress can keep energy costs affordable, grow domestic industries and ensure the U.S. remains the undisputed leader in both traditional and next-generation energy resources.

Energy Incentives Will Unlock Energy Dominance (The Washington Times)

This op-ed was originally published by The Washington Times on April 28, 2025. Click here to read the entire piece.

The first 100 days of the new Trump administration have reshaped the energy landscape. Reliable, affordable energy is a top priority as the president seeks to unleash a new era of American energy dominance. Lower energy prices can usher in a true golden age for U.S. consumers. Done well, this agenda can also reduce global carbon dioxide emissions.

This dynamic is underscored by the president’s work to recruit new artificial intelligence and data center investments to the U.S. These investments can lead to economic development and will require rapid energy demand growth when paired with an American manufacturing resurgence, increasing U.S. energy demand by as much as 18% over the next decade, according to data from the North American Electric Reliability Council. Energy prices are one of the most important cost drivers in these energy-intensive industries.

A rapid increase in supply is required to maintain affordable costs for all American consumers. The U.S. must rapidly deploy all types of new American power. To effectively deploy these new technologies at speed, the administration will need to break down permitting barriers to accelerate the buildout of new energy infrastructure like pipelines, transmission, and other grid-enhancing technologies.

In addition to streamlining the permitting process to increase and maximize new investments, minimizing the tax burden on developers is another essential part of this equation. Maintaining low corporate rates is certainly going to help, but tax incentives also play an enormous role in minimizing investment risk and keeping prices low. Fortunately, some key incentives will not require drastic policy changes like the green new deal or a heavy-handed government regulation.

Existing incentives authored or supported by Republicans in Congress under current law are critical for American leadership in new, affordable, 24/7 American power. These forms of power include advanced nuclear, geothermal, hydropower, natural gas with carbon capture, and even new breakthroughs in fusion technology. Key incentives, like 48E/45Y technology-neutral electricity credit; the 45X advanced manufacturing credit; the 45Q carbon capture, utilization, and storage credit; and the 45V hydrogen credit, can reduce the costs for American producers and support the manufacturers and the mineral supply chain across the economy. Simply put, consumer prices go up if the U.S. doesn’t lower the tax and energy cost burden for American producers and manufacturers.

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State of Play: The Chemical and Refining Sectors

Modernize, Compete, Win: Upgrading America’s Energy Finance Strategy (The National Interest)

This op-ed was originally published by The National Interest on April 5, 2025. Click here to read the entire piece.

By upgrading its energy finance strategy through smart reforms and strategic investment, the United States can cement its role as the go-to energy partner for the future.

The global energy landscape is changing fast. Countries are scrambling to secure resources, invest in new technologies, and stay ahead in an increasingly competitive market. At the same time, U.S. oil and gas production is booming, artificial intelligence (AI) -driven electricity demand is surging and America remains heavily reliant on foreign critical minerals. Growing instability in key strategic regions and rising competition with China has increased the stakes for U.S. national security, economic strength and global partnerships.

America needs smart export and development financing policies to maintain global leadership. Agencies like the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of the U.S. (EXIM) are key tools for projecting American energy dominance and pushing back against China’s aggressive, state-funded energy expansion. With both agencies up for reauthorization this Congress, now is the time to modernize their mandates, cut red tape, and give them the support they need to secure U.S. energy leadership on the global stage.

Geopolitical Competition and Energy Security

Although the U.S. leads in key areas, competitors like China and Russia aren’t sitting still. China has invested nearly $1 trillion into clean energy projects annually while building ninety-four gigawatts of new coal capacity. Meanwhile, China and Russia dominate nuclear fuel and critical mineral supply chains, using predatory financing to lock in energy deals across emerging markets.

The U.S. can’t afford to let its competitors outmaneuver it. By modernizing key federal agencies, Washington can provide nations with competitive alternatives, securing America’s leadership in global energy for decades.

Strengthening U.S. Energy Leadership Through Strategic Financing

If the United States wants to stay ahead in global energy markets and compete with China’s massive state-backed investments, the administration needs to double down on promoting American commercial energy projects abroad. The DFC and EXIM are critical tools for backing American energy innovation and infrastructure, but bureaucracy and outdated policies make them less effective. Their upcoming reauthorizations offer prime opportunities to fix that.

Right now, the DFC makes money for the U.S. taxpayer but can only provide up to $1 billion in loans and only $60 billion in total, compared to China’s nearly unlimited state financing. Raising these caps would allow the United States to fund bigger projects, like nuclear plants and critical minerals infrastructure, that shape the future of energy. In addition, fixing how the federal government’s archaic budget rules affect the DFC is also necessary so it can fully use its resources to help American companies compete globally.bate sectors.

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Power Demand Explained: Watts, Gigawatts and the Future of Energy

These days, we hear a lot about the rapid increase in global energy demand due to various factors like growing economies, widespread electrification, and the rise of data centers as AI expands. And it’s true. Here in the United States, after 15 years of static growth, our electricity demand is rising at an accelerated rate. Researchers estimate that by 2030, we will need 20% more energy – a total of 5 million gigawatt-hours of electricity each year.

“5 million gigawatt-hours.” That sounds like a lot. But what does that really mean?

Let’s start with the basics. A watt is a measure of power in an instant. For example, the 60-watt light bulb in your lamp at home requires 60 watts of power to turn on. A Watt-hour is a measurement of that power usage over time.

So, let’s say you turn on your lamp to read a book for two hours, you use 120 watt-hours of electricity. Easy enough.

Now, let’s take a look at a few other examples, going in order from smallest to largest. But first a reminder about unit prefixes: there are one thousand watts in a kilowatt, one million in a megawatt, and one billion in a gigawatt.

While you’re reading your book, your lamp might only use 120-watt hours of electricity, but the average American household will use 2.4 kilowatt-hours during that time. That’s your lamp, the AC, the TV playing, and so on. Scaling up – with 150 megawatt-hours – you could power 42,000 American households for three hours while they watch a Sunday afternoon football game… or you could use your 150 megawatt-hours to power the NFL stadium itself. In the same amount of time, a large city like Washington D.C. would consume 25 times that much electricity, almost 4 gigawatt hours.

Currently, the U.S. needs around 4 million of these gigawatt-hours a year – again that’s 4 million billion watt-hours – or 4 with 15 zeros after it – and those needs are met with a mixture of 60% fossil fuels, 30% renewables, and 10% nuclear energy. And to get us 20 percent more energy – up to 5 million gigawatt hours a year – we would need the equivalent of 1,500 Hoover dams in additional generation. That means we are going to need a lot more of ALL of these energy sources to keep up with expected demand.

And, we don’t just need more energy, we need energy that is affordable, reliable and clean. In other words, we need to take a pragmatic, all of the above approach to U.S. energy development. To keep the lights on – at a price that consumers can afford, we need more baseload energy – the 24/7/ 300 and 65 days a year electricity sources that provide clean power. That means things like advanced nuclear, geothermal, and natural gas with carbon capture.

Ultimately, in order to generate and move all this energy around, we are going to need more than 15,000 new energy projects in this decade alone, and every single one of those projects starts with a permit. Unfortunately today in the United States, you can get a college degree faster than you can get a permit to build a clean energy project. That is why we all must work together to streamline federal permitting processes and unleash American energy.

ClearPath’s answer to the power demand challenge? It’s time to Let America Build.