How Canceled Climate Grants Could Have Reduced Pollution and Created Jobs at Alabama Ironworks

BIRMINGHAM, Ala. — Last week, two iron pipe manufacturers in Alabama learned they lost out on $150 million in federal funding. This money was meant to help increase productivity, create jobs, and reduce harmful emissions.

The American Cast Iron Pipe Company and U.S. Pipe and Foundry Company each expected $75 million from the U.S. Department of Energy. The funding would have replaced older blast furnaces with cleaner electric induction furnaces. Estimates suggested this change could cut greenhouse gas emissions by up to 73% at U.S. Pipe and 62% at the American Cast Iron Pipe.

The Department of Energy terminated this funding as part of a larger cancellation of 24 clean energy grants totaling $3.7 billion. They stated that the projects didn’t meet the energy needs of Americans, lacked economic viability, and wouldn’t yield a positive return for taxpayers.

Energy Secretary Chris Wright emphasized the need for careful financial review, highlighting shortcomings in the previous administration’s approval process. “Today, we prioritize projects that benefit the American people,” he noted.

Both companies have been staples in Birmingham’s manufacturing scene for more than a hundred years, producing vital infrastructure materials. Their upgrade would have decreased reliance on coke, a type of coal that has significant environmental and health risks. The National Cancer Institute has linked coke emissions to serious diseases, including lung cancer.

In 2021, a local coke plant was shut down for violations of the Clean Air Act, and it hasn’t reopened since. Experts agree that converting to electric induction could improve air quality significantly, cutting down on harmful emissions like particulate matter and nitrogen oxides.

Despite losing federal support, American Cast Iron Pipe is committed to moving forward with the project. They aim to increase production capacity and create well-paying jobs. The project is expected to be completed by 2029.

U.S. Pipe, which has a long history dating back to 1899, was formed by merging multiple foundries. It employs around 970 people in Alabama. After losing its federal grant, the company has not clarified whether it will continue with its proposed electrification project.

A large part of the community is invested in these companies’ future, as they play a crucial role in local employment and infrastructure. It’s clear that the decisions made now will shape not just the companies, but also the environmental landscape for years to come.

For further reading on the implications of emissions from coke production, you can refer to resources from the National Cancer Institute.

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