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The U.S. Environmental Protection Agency plans to finalize more than $200 million in grant funding in the coming weeks to accelerate the clean energy transition at three Great Lakes shipping ports.
The Cleveland-Cuyahoga County Port Authority, Detroit/Wayne County Port Authority, and the Illinois International Port District were each selected for grants last month under the Biden administration’s Clean Ports Program.
The U.S. EPA said it intends to finalize grant agreements by December or January. That action will obligate the federal government to pay roughly $3 billion in grants under the program, even if President-elect Donald Trump or the next Congress tries to repeal or block further action under the Inflation Reduction Act.
The $94 million grant announced for the Cleveland port is the largest it has ever received and will help it build on work that’s already underway to electrify and decarbonize its infrastructure.
“It puts us at the forefront of decarbonization,” said William Friedman, president and chief executive officer of Cleveland’s port authority. “Now we’ll be able to start figuring out what’s the phase-in and then how do we move forward with the next round.”
The Detroit/Wayne County Port Authority will get approximately $25 million for solar panels, charging infrastructure and electric cargo handling equipment, and another $95 million will go to the Illinois EPA for solar, battery storage and hydrogen-related investments at the Illinois International Port District serving greater Chicago.
The largest share of grants will go to ports along the East and West coasts. “But the program is also intended to set the foundation for transitioning the entire port industry to zero emissions,” said Jennifer Macedonia, a deputy assistant administrator for U.S. EPA. “And there are important communities around many of our inland ports as well.”
The shipping industry accounts for roughly 3% of global greenhouse gas emissions, according to the U.S. Department of Energy. While the bulk of that is from ships themselves, port operations typically rely on diesel power for most of their energy. And ships often burn fuel to power equipment even while they’re in port.
The EPA’s review process included ensuring that selected projects can achieve or exceed goals for reducing greenhouse gas emissions, as well as other pollution that can affect nearby communities, said U.S. EPA Administrator Michael Regan. Those criteria air pollutants are ozone, particulate matter, carbon monoxide, lead, sulfur dioxide and nitrogen dioxide.
The work is especially important for Ohio, which has lagged other Midwest states and regions in deploying strategies to reduce greenhouse gases, said Valerie Katz, deputy director for Cuyahoga Green Energy. “Our regional decarbonization efforts will reduce environmental exposure to toxic air pollutants for downstream Ohio communities.”
Funding for the Port of Cleveland will encompass work for electric cargo-handling equipment and vessels that serve the port, along with solar generation and battery storage, charging infrastructure and shore power for vessels. Project partners include Logistec USA, the commercial operator for day-to-day operations, as well as the Great Lakes Towing Company, which will build two electric tug boats.
Decarbonization is a “competitive advantage that will attract more shipping volume to our port,” said Baiju Shah, president and CEO of the Greater Cleveland Partnership. “Companies are striving to reduce their environmental footprints through their operations and value chains,” including Scope 3 greenhouse gas emissions. “In addition, electrifying the port operations supports our region’s clean air efforts.”
That’s especially important given the port’s location near the downtown lakefront and riverfront areas, Shah said. Lake Erie and the Cuyahoga River are the focus for several waterfront development projects aimed at drawing more business and visitors to Cleveland.
Funding for the Port of Detroit will go toward electric cargo-handling equipment, some vessels and railcar movers, along with charging infrastructure and solar generation. Part of the money also will be used to develop a roadmap for adding EV and hydrogen fueling infrastructure. The Detroit/Wayne County Port Authority is part of the Midwest Alliance for Clean Hydrogen, or MachH2, which was selected last year for $1 billion in Department of Energy funding for a hydrogen hub.
Funding for the Illinois International Port District will cover a variety of projects for its three ports, including hydrogen fueling infrastructure, solar energy and battery storage, and hydrogen and electric cargo handling equipment. Hydrogen and electric locomotives also are on EPA’s program selections list. The Illinois EPA is the lead partner for the grant work.
Like its counterpart in Cleveland, the Detroit/Wayne County Port Authority had already begun working on plans to move to cleaner energy sources for Scope 1 and Scope 2 emissions. But zero-emissions equipment to move cargo is new in the U.S. shipping industry and is still generally more expensive than fossil-fueled counterparts.
“What’s great about the EPA grant is that it helps these businesses make the decision to choose this cleaner technology,” said Mark Schrupp, executive director for the Detroit port authority. Over time, costs for such equipment should come down, but the grants will help launch market growth.
Various projects among the 55 selected for grants last month have planning components and provisions for community engagement or workforce development. Planning work on emissions inventories can position other ports to move ahead with clean energy in the future, Macedonia said.
The U.S. EPA plans to move ahead swiftly to finalize grant agreements, which will have the effect of protecting the funds from a possible clawback under Trump or the next Congress.
“We will be awarding the grants in December of 2024 and January of 2025… so that money will be obligated on or before the end of this administration,” Regan said. Depending on the projects, implementation will occur over the next three to four years.
In Cleveland, that means a big chunk of work under the new grant will be taking place even as renovation of the Port of Cleveland’s Warehouse A and electrical work take place under its current projects.
“We’ll have to throw a lot here at the engineers and construction project management people to figure this out,” Friedman said. Yet the timing means it will be that much sooner for the port to move to zero emissions for its own operations.
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