California Announces $46.2 Million in Grant Funding Available to Decarbonize Industrial Facilities

 The California Energy Commission (CEC) has $46.2 Million available in the Industrial Decarbonization and Improvement of Grid Operations (INDIGO) Program. The program’s goal is to deploy cutting-edge, emerging technologies at California industrial facilities to promote electrification and load flexibility, reduce fossil fuel and thermal energy usage, and reduce criteria air pollutants and carbon footprints.


Who is Eligible for the INDIGO Program?

  • Existing Industrial Facilities located in California
  • Utilities
  • Equipment Manufacturers
  • Energy Service Companies
  • Project Aggregators
  • Project Developers who propose to implement projects in California’s industrial sector

Entities, facilities and projects that are associated with the production or processing of oil and gas are ineligible.


What are CEC’s priorities with this program?

The CEC’s INDIGO Program will assist California’s industrial facilities in achieving the following:

  • Emission Reductions: Adopt electrification and other eligible decarbonization technologies to reduce annual GHG emissions and other criteria air emissions at industrial processing facilities.
  • Electrical Grid Support: Adopt commercially available and emerging technologies needed to support grid reliability, especially during net peak periods.
  • Benefits to Priority Populations: Reduce criteria air pollutants and have direct community engagement and support, especially in low income or disadvantaged communities.


What is required of projects?

The proposed technology(ies) and project must achieve at least one of the following goals at the industrial demonstration site(s).

  • Electrify some or all industrial processes
  • Maximize GHG emission reductions
  • Drive scalability and application of project technology to other facilities, industries, and/or processes.
  • Reduce electrical demand during net peak periods
  • Provide air pollution benefits to priority populations

Additional points could be awarded for meeting multiple goals.


What are the funding levels and match requirements?

The minimum award is $4 million and the maximum is $10 million.

Match funding of at least 25% of requested INDIGO funds is required.

At least 50 percent of grant funding must go to equipment and material costs, excluding installation costs. Less than 50 percent of grant funding may include direct labor, fringe benefits, and vendors that are directly related to installation, engineering and design, measurement and verifications, and community engagement. Any travel, indirect costs and costs associated with permitting and technology certification much be covered by match finding.


The deadline to apply is June 3, 2024.


The full Grant Funding Opportunity can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team at or call us at 530-893-4764.


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