California Clean Industrial Hub

By 2035, all drayage trucks at California ports must be zero-emissions, and by 2045, all truck sales in California must be zero-emissions vehicles. We supported the transition to zero-emissions trucking by evaluating the total cost of ownership of electric and hydrogen trucks, working with ports and local governments to increase financial incentives to reduce the cost premium of purchasing zero-emissions trucks, and identified pathways to scale up charging infrastructure for electric trucks.

Cement plants in California must reduce emissions by 40% by 2035 and achieve net-zero emissions by 2045. Just 7 cement plants in California emitted 7 million mt CO₂e in 2023. We identified pathways for two clinker facilities to achieve net-zero emissions by 2045 through integrated site decarbonization utilizing three key levers: alternative fuels, supplementary cementitious materials (SCMs), and carbon capture and storage (CCS). We then helped the company identify public funding opportunities to offset the cost premium.

Sustainable aviation fuel can help reduce aviation emissions by between 70 and 90 percent relative to conventional jet fuel. California’s legacy of refining presents an opportunity to produce SAF and other low-carbon fuels. We evaluated production pathways including HEFA (hydroprocessed esters and fatty acids) and PtL (power-to-liquids) for two different SAF producers and identified cost-effective ways to reduce carbon intensity. We worked with financial institutions to identify solutions to common financing barriers for SAF projects.

Decarbonizing ports and shipping are essential to meet California’s climate goals and maintain economic competitiveness. We calculated the total cost of ownership for zero-emissions cargo handling equipment and costs for terminal operators at the Ports of Los Angeles and Long Beach to fully convert their equipment to zero-emissions by 2030. Additionally, we analyzed zero-emissions fuel supply options for ports and the feasibility of green shipping corridors.

Hydrogen is an essential lever for industrial decarbonization in California. We analyzed the costs, technology readiness, and public funding available for two green hydrogen producers in California.

Industrial electrification is essential for decarbonizing California’s existing industries and to support emerging industries. We evaluated state and federal incentives for industrial electrification projects and the potential to scale thermal heat batteries to ~50 facilities in California.

Policy support and public funding accelerate the transition to California’s clean industrial future by holding companies to cleaner standards and providing critical funding needed to make investments in clean industrial facilities today. We created the Decarbonizing Industry Resource Tool (DIRT) to help project developers, industrial companies, and investors discover the state and federal financial incentives that may apply to their industry and heavy transport projects. Through this work, we identified solutions to barriers to siting and permitting truck charging depots and industrial projects in California.

Private capital is necessary to bring projects from planning to final investment decision and ultimately construction, creating tipping points for sector-wide change and making clean the new normal. In California, we convened financial institutions including banks, private equity, and other investors to identify solutions to bankability challenges for green hydrogen and sustainable aviation fuel. We developed the Industrial Decarbonization Investor database which catalogues more than 200 institutions that have expressed interest in and finalized transactions related to industrial decarbonization.

Midstream infrastructure — including electric transmission lines, hydrogen pipelines, and energy storage — is essential for clean energy to reach industrial facilities. We evaluated the energy supply and midstream infrastructure needed for California’s industrial sector to achieve net-zero emissions by 2045.

Decarbonization cannot happen without equitable and inclusive two-way community engagement. We held workshops for project developers to develop community engagement strategies and learn best practices for developing Community Benefits Plans and Community Benefits Agreements. We interviewed members of community-based organizations, labor groups, and other NGOs about effective practices, challenges, and opportunities for improvement in implementing Community Benefit Plans.