(Reuters) – Albemarle (NYSE:), Cummins (NYSE:) and Siemens Energy are among companies that received tax credits under a section of the Inflation Reduction Act (IRA), according to details released Friday by the U.S. Department of Energy (DOE).
Thirty-five projects, focused on electrical grid improvements, critical minerals and electric vehicle components, among others, received a total of $1.93 billion in tax credits.
CONTEXT:
US President Joe Biden signed the landmark $430 billion IRA in 2022. In March, $4 billion in tax credits was announced for more than 100 projects to accelerate clean energy production under the Qualifying Advanced Energy Project Tax Credit (48C).
These credits could cover up to 30% of the investment costs, provided they meet U.S. wage and apprenticeship requirements.
WHY IT’S IMPORTANT:
Renewable and clean energy are crucial for achieving the climate goals set at the 2015 UN Climate Conference in Paris aimed at limiting global warming.
Rising financing and material costs, coupled with a slow permitting process, have weighed on clean energy projects.
While U.S. investment in wind and solar power plants reached record levels last year, the dramatic pace of growth still fell short of the level needed to meet the country’s climate goals.
BY THE NUMBERS:
Albemarle will receive $9.4 million in credits to support the company’s lithium carbonate production at the Silver Peak Lithium Project facility in Nevada.
Cummins will receive $10.6 million in credits for the production and testing of large-scale proton exchange membrane electrolyzers at its facility in Fridley, Minnesota.
Siemens Energy received $18.3 million in credits to build its first Large Power Transformer (LPT) manufacturing facility in the United States.
Other companies that previously reported credits under the program include MP Materials and Ballard Power Systems (NASDAQ:).
