In a major reversal of federal support for clean energy, U.S. Energy Secretary Chris Wright announced the cancellation of $3.7 billion in project grants, dealing a significant blow to efforts to reduce greenhouse gas emissions. The decision, aligned with President Donald Trump’s energy agenda, affects 24 grants largely issued during the final months of President Joe Biden’s tenure.
The rescinded awards were intended to support carbon capture and storage technologies, as well as cleaner industrial processes in sectors such as cement and natural gas. Notable cancellations include $500 million for Heidelberg Materials US, Inc., $375 million for Eastman Chemical Company, $270 million for Sutter CCUS, and $87 million for cement innovation firm Sublime Systems.
Sublime Systems expressed it was “surprised and disappointed” by the abrupt decision, while broader criticism quickly followed from clean energy advocates and policy experts. “This action is bad for U.S. competitiveness in the global market,” said Conrad Schneider of the Clean Air Task Force, warning the move undermines American leadership in emerging green industries.
The cancelled funding formed part of the Office of Clean Energy Demonstrations, a body created under the 2021 bipartisan infrastructure law to spearhead innovation in decarbonisation and energy technologies. Earlier this month, the Energy Department signalled a wider review of 179 clean energy projects worth over $15 billion.
Defending the decision, Wright stated the cancellations were part of a broader effort to ensure “responsible” and “strategic” use of taxpayer funds. “The Trump administration is doing our due diligence to ensure we are strengthening national security and advancing energy projects that provide the highest return on investment,” he said.
Critics, however, view the move as yet another step in dismantling Biden-era climate policy. The Trump administration has taken a markedly different stance, rolling back environmental regulations and increasing support for fossil fuel production under its “American energy dominance” doctrine.
Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, called the decision “shortsighted,” while Jessie Stolark of the Carbon Capture Coalition described it as “a major step backward” for U.S. climate efforts.
Mike Williams of the Center for American Progress added that cancelling these projects could jeopardise thousands of union jobs and delay technological advancements in sustainable manufacturing. “It sacrifices innovation and jobs for the sake of appeasing Big Oil,” he said.
Evan Gillespie, partner at Industrious Labs, warned the move would not only increase emissions and pollution, but also impact public health and economic resilience. “Killing these projects means more emissions, more pollution, and more people getting sick,” he said.
