U.S. Secretary of Energy Chris Wright announced the Department of Energy terminated 24 awards issued by the Office of Clean Energy Demonstrations.
DOE canceled a combined $3.7 billion in financial assistance to energy projects, including carbon capture and sequestration projects and other decarbonization initiatives. It said the projects “failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars.”
By terminating the awards, DOE said it expects to generate $3.6 billion in taxpayer savings. The Center for Climate and Energy Solutions estimates the cuts could result in the loss of 25,000 jobs and $4.6 billion in economic output.
“Canceling cutting-edge technology demonstrations, including support for carbon capture and storage projects, undercuts U.S. competitiveness at a time when there is a growing global market for cleaner industrial products and technologies,” said Conrad Schneider, senior director U.S., Clean Air Task Force.
About 70% of the awards were issued between the presidential election day and Donald Trump’s inauguration on January 20th in the final days of the Biden Administration.
“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,” said Secretary Wright.
The Office of Clean Energy Demonstrations advances cutting-edge technologies, including green hydrogen, carbon management, nuclear energy, long-duration energy storage, industrial decarbonization, and renewables and grid innovations. The office was established in 2021 and has managed a $25 billion-plus portfolio of clean energy demonstration projects across the U.S.
“Locking domestic plants into outdated technology is not a recipe for future competitiveness or bringing manufacturing jobs back to American communities,” said Steven Nadel, executive director, American Council for an Energy-Efficient Economy.
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