The U.S. Department of Energy announced Friday that it has canceled 24 green energy projects, totaling more than $3.7 billion in funding, that were issued during the Joe Biden administration.
The decision, which affects major carbon capture and clean technology initiatives, comes as the Donald Trump administration re-evaluates publicly funded awards and loans aimed at emerging technologies.
“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,” U.S. Secretary of Energy Chris Wright said.
Among the canceled projects is a $332 million carbon-cutting initiative at Exxon Mobil’s Baytown refinery complex in Texas, which aimed to reduce emissions by using hydrogen instead of natural gas to produce ethylene, a key component in plastics and textiles, Reuters news report said. Other major projects affected include a $500 million award to Heidelberg Materials in Louisiana and a $375 million award to Eastman Chemical Company in Longview, Texas.
Nearly 70 percent of the canceled awards had been signed between the November 5, 2024, election and January 20, 2025, Biden’s final day in office.
The move reflects the Trump administration’s shift in energy policy, which prioritizes maximizing oil and gas output while rolling back key aspects of Biden-era climate and clean energy policies. The administration has framed the decision as part of a broader effort to reassess government spending on emerging technologies.
Environmental groups and clean energy advocates have strongly criticized the cuts. Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, called the decision “short-sighted” and warned it could stifle innovation.
“Locking domestic plants into outdated technology is not a recipe for future competitiveness or bringing manufacturing jobs back to American communities,” Nadel said.
The Center for Climate and Energy Solutions estimated that the termination of the projects could result in the loss of up to 25,000 jobs and a $4.6 billion hit to economic output.
The affected companies, including Exxon Mobil, Heidelberg Materials, and Eastman Chemical, have not yet responded to requests for comment.
The canceled projects were part of the Office of Clean Energy Demonstrations’ efforts to test carbon capture and storage technologies at industrial sites. Carbon capture projects aim to mitigate climate change by removing carbon dioxide from the air or from industrial emissions for long-term storage underground. In some cases, the captured CO₂ is injected into depleted oil fields to enhance crude production.
The cuts have fueled debate over the future of U.S. climate policy, as the country faces mounting pressure to reduce greenhouse gas emissions while maintaining energy security and industrial competitiveness.
GreentechLead.com News Desk