Energy secretary terminates $3.7B-worth of Biden-era projects focusing on carbon capture, decarbonization

Sean Wolfe | Source: Renewable Energy World | Posted 06/02/2025

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Of the 24 awards cancelled, 16 were signed between Election Day and January 20th. The projects primarily include funding for carbon capture and sequestration (CCS) and decarbonization initiatives. The U.S. Department of Energy (DOE) said it concluded 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.”

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U.S. Secretary of Energy Chris Wright has announced the cancellation of 24 awards from the Office of Clean Energy Demonstrations, totaling over $3.7 billion. These projects, primarily focused on carbon capture and decarbonization, were deemed by the Department of Energy (DOE) to be economically unviable and not beneficial to the energy needs of the American public. Notably, 16 of the terminated awards were signed shortly before the Biden administration took office.

Among the projects affected were significant allocations, including $331 million for Exxon Mobil's hydrogen project in Texas and $500 million for a low-carbon cement initiative by Heidelberg Materials. Secretary Wright emphasized that the cancellations were made to ensure responsible use of taxpayer dollars and to prioritize investments that enhance national security and energy reliability. The DOE's recent policy on financial assistance evaluation played a crucial role in this decision, as it assessed each project against economic and security standards.

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Source Link: https://www.renewableenergyworld.com/energy-business/policy-and-regulation/energy-secretary-terminates-3-7b-worth-of-biden-era-projects-focusing-on-carbon-capture-decarbonization/

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Energy secretary terminates $3.7B-worth of Biden-era projects focusing on carbon capture, decarbonization

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