Pumped storage hydro included in DOE support for clean energy on mine lands

Pumped storage hydro included in DOE support for clean energy on mine lands
(Eagle Mountain mine)

The U.S. Department of Energy (DOE) has announced up to $450 million from the Bipartisan Infrastructure Law to advance clean energy demonstration projects, including pumped storage hydro, on current and former mine lands.

Deploying clean energy projects in mining communities is key to strengthening rural economies; creating new, good-paying jobs; and reducing harmful greenhouse gas emissions that jeopardize public health and pollute local ecosystems, DOE said. The funding also builds on the more than $14 billion whole-of-government effort by President Biden’s Interagency Working Group on Coal and Power Plant Communities to deliver new economic opportunities to communities hit hardest by the evolving energy landscape.

“Deploying clean energy projects on America’s mine lands will unlock new opportunities for energy communities that have helped power our nation for generations, especially those in rural areas that have been the most affected by the energy transition,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to President Biden’s Investing in America agenda, mining communities across our nation can access an unprecedented level of new funding to ensure they can help lead our clean energy future.”

About 17,750 mine land sites are located across 1.5 million acres in the U.S., which expose local populations to harmful pollutants and contaminate the surrounding air, land and water quality. Repurposing this land for clean energy projects is estimated to generate up to 90 GW of clean energy. Developing clean energy projects on mine land provides an attractive economic alternative to using undisturbed natural and agricultural land. Mine land is often located near critical infrastructure that makes it suitable for clean energy development, including electric substations, transmission lines, and access roads or railroad lines, DOE said.

Projects funded through the Clean Energy Demonstration Program on Current and Former Mine Land will establish how mine lands can be leveraged for clean energy and will pave the way for broad replication of these projects across the nation. DOE’s Office of Clean Energy Demonstrations (OCED) manages this program and will provide up to 50% of the cost, ranging from $10 million to $150 million, for each project. For this funding announcement, DOE seeks projects that demonstrate: 

Replicable pathways that resolve key barriers to expanded clean energy development on mine land

Preservation of natural and agricultural resources through repurposing mine land for clean energy projects

Benefits of integrating clean energy facilities on mine land to mine operations, local energy infrastructure, and the mining communities themselves

Projects selected will help to create high-quality and long-term jobs, spur economic development, and provide other direct benefits to the local community. DOE intends to award projects that direct benefits to economically distressed areas, including former coal and manufacturing communities. In addition, DOE aims to prioritize projects in which community members are partners and/or equity co-owners.

Applicants must submit a Community Benefits Plan.

Concept papers are due by May 11, 2023, and full applications are due by Aug. 31, 2023