The U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) has awarded the Kohler Co. Vikrell Electric Boiler & Microgrid System project with more than $588,000 (of the total project federal cost share of up to $51.2 million) to begin Phase 1 activities to demonstrate commercial- scale decarbonization solutions to help move energy-intensive industries toward net-zero. Selected as one of 33 projects in the U.S., the funding will be matched by Kohler investment to support the Electric Boiler & Microgrid project at its manufacturing site in Casa Grande, Arizona.

The project plans to install electric boilers and a microgrid consisting of a 21 MW solar array and a 20.5 MW battery energy storage system to lower carbon dioxide (CO₂) emissions by an estimated 7,865 metric tons per year, reducing at least 75% and up to 90% of the pressing process CO₂ emissions from natural gas boilers on site. The project aims to demonstrate the viability of a renewables and microgrid system to decarbonize process heat emissions and demonstrate applicability to a wide range of manufacturing processes. The cutting-edge system intends to provide seamless switching between energy sources to optimize decarbonization and economics, eliminating carbon emissions from natural gas boilers for industrial process heating.

“We are honored to receive this funding to continue our environmental sustainability efforts, and excited to start on this impactful project at our Arizona facility,” says Heath Holtz, Chief Operations and Supply Chain Officer for Kohler Co. “This upgrade means a significant reduction in process emissions and further support of Kohler’s Net Zero GHG commitment.”

During Phase 1 of the project, Kohler Co. will conduct initial planning and begin engineering, and design work in collaboration with Clarke Energy, a Rehlko company, while carrying out tasks associated with OCED’s completion of a National Environmental Policy Act (NEPA) review. Kohler also intends to hold preliminary meetings with workforce and community groups in the area.

View the project fact sheet and community benefits commitments summary here. Learn more about engagement opportunities here.

Kohler completed construction of its Casa Grande manufacturing facility, ancillary warehouse, and office space in May 2024. The multi-million capital investment comprises a total of approximately one million square feet, with room onsite for future expansion, and has brought more than 400 new full-time jobs to the local market.

Additionally in 2023, Kohler supported a multi-year project led by Bonneville Environmental Foundation, Arizona State University, and Bridgestone to convert high water use crops to low water use crops to alleviate water stress on the local aquifers. Kohler is dedicated to forging private, public, and federal partnerships to help ensure water security for all and is actively partnering with local NGOs, companies, and universities to explore opportunities to mitigate water scarcity through restoration projects within the community. Through Kohler’s water stewardship ambitions, the company is dedicated to being responsible users of water within its facilities, but also believes in supporting local water resources and the communities that rely on them.