The North America division of Germany’s Heidelberg Materials has secured a $500 million grant from the U.S. Department of Energy (DOE) to develop a CCS system at its cement plant in Mitchell, Indiana.

The $600 million plant was completed last year and is the second-largest cement plant in the U.S. If the project is successful, the Mitchell plant could become one of the world’s first full-scale cement facilities with a carbon capture system by 2030. Two years of design work are envisaged, followed by three years of construction.

The CCS project is expected to cost over $1 billion and aims to capture 2 million tons of carbon dioxide (CO₂) annually. Heidelberg is seeking additional grants, tax incentives, and other funding sources to complete the project.

The CCS facility will feature extensive underground storage infrastructure and will be built adjacent to the existing cement plant, allowing for efficient transport of CO₂.

The DOE funding is part of a broader $6 billion initiative by the Biden administration to reduce carbon emissions across various industries.

Heidelberg is also pursuing a similar CCS project at its Edmonton plant in Canada, as part of its goal to achieve carbon neutrality by 2050.