Transportation
Buildings
Electricity
Cross-Cutting
Low-Carbon Fuels

Industrial Actions

Oregon’s industrial sector needs policy direction and support to comply with state decarbonization targets while remaining competitive in a world of rising energy costs. Current operations are dependent on imported fossil fuels to power manufacturing processes that result in a significant amount of GHG emissions. To meet state decarbonization targets, Oregon industry will need to transition to cleaner and more efficient manufacturing processes.

Identifying cost effective pathways for businesses to reduce their emissions, mitigate energy costs, and remain competitive in regional and global markets will be critical to transitioning Oregon’s industrial sector. Historically, there has been limited state support for decarbonization and innovation in the industrial sector; the energy transition is an opportunity to invest in Oregon businesses to help them modernize their operations and reduce future costs. In addition to supporting industrial competitiveness and sustainability, these actions have the potential to reduce emissions in affected communities.

Energy modeling conducted for the Oregon Energy Strategy determined that investment in energy efficiency and electrification can reduce some energy demand, and adoption of low-carbon fuels will be essential to decarbonize the hardest-to-electrify processes. Many high heat applications do not have an equivalent electricity technology replacement and will continue to be dependent on combustible fuel to meet energy demand. Low-carbon fuels have the potential to meet this energy demand while reducing lifecycle emissions. Low-carbon fuels such as biofuels or renewable hydrogen also present the opportunity of onsite production and storage using waste feedstocks, water, or other local resources.

These industrial policy actions highlight the need to collaborate with Oregon businesses to research and better understand the barriers and opportunities available to decarbonize Oregon industry.

Industrial Action 1 

Identify and evaluate short and long term decarbonization options for large industrial entities in Oregon.

    • 1 (Energy Efficiency)

    • 3 (Electrification)

    • 4 (Low-Carbon Fuels)

    • 1b (Large commercial and industrial efficiency)

    • 3c (Strategic electrification)

    • 4b (Low-carbon fuels adoption)

    • 4c (Managed fuels transition)

    • 1 (decision-making)

    • 4 (workforce)

  • Under this action, ODOE and Business Oregon would collaborate with large industries such as manufacturing to identify opportunities for decarbonization, including energy efficiency, demand response, industrial symbiosis, electrification of thermal processes, low-carbon fuels, carbon capture and storage and other opportunities to support strategies to reduce greenhouse gas emissions and support competitiveness. Industrial findings and demonstration projects would inform potential solutions for the rest of Oregon’s industrial sector and lead to policies to be implemented by state agencies and the legislature.

    Many industries in Oregon combust solid, liquid, and gaseous fuels to produce their products and need proven decarbonization solutions to reduce greenhouse gas emissions and remain competitive. Reducing industrial emissions requires tailored solutions to address a range of different processes and technologies. For example, low and medium temperature fossil fuel heating applications may be electrified through thermal energy storage, industrial scale heat pumps and heat recovery systems, electric boilers, and other electricity-enabled technologies. The cost of electricity can strain the cost effectiveness of these projects, and development of on-site generation may be a way to mitigate cost. Industrial high-heat processes will likely be dependent on the development and deployment of low-carbon fuels to meet energy demands. Promotion and support of Oregon businesses siting near each other and exchanging materials, energy, water, and by-products through industrial symbiosis offers the opportunity to improve efficiency and production while reducing demand for energy, water, and other resources. This action will help advance understanding of what those solutions might look like across Oregon’s industrial landscape.

Industrial Action 2 

Fund an industrial modernization revolving loan fund to bolster adoption of energy efficiency improvements, electrification of thermal processes, industrial symbiosis, smart manufacturing, and application of low-carbon fuels where electrification is not feasible for large industrial entities.

    • 4 (Low-Carbon Fuels)

    • 4b (Low-carbon fuels adoption)

    • 4c (Managed fuels transition)

    • 3 (incentive programs)

    • 4 (workforce)

  • This action would build on the previous action and support implementation of measures to decarbonize Oregon’s industrial sector. Industries will require support to help identify innovations that can help decarbonize their processes while maintaining competitiveness in the national and global economy. Support may include technical assistance, collaborative forums, low-cost financing, or grants to help industries identify and deploy approaches to decarbonization.