The U.S. Energy Department recently announced the termination of $3.7 billion in funding for 24 awards originally proposed under the Biden administration for innovative projects intended to tackle climate change. The projects included efforts by several companies in the industrial sector aiming to reduce emissions from critical industries such as cement, glass, and chemicals. Notably, among the canceled initiatives was a noteworthy $331 million grant intended for Exxon Mobil, which sought to implement lower-emission hydrogen technologies at its chemical facility in Baytown, Texas.
The decision also impacted two major awards worth a combined $540 million that were set to support Calpine, a key electricity producer in the U.S. The company planned to capture and store carbon emissions from its natural gas power plants located in Yuba City, California, and Baytown, Texas.
In a statement regarding the cuts, Energy Secretary Chris Wright emphasized that the projects did not meet the economic viability criteria necessary to ensure a responsible return on taxpayer investment. He criticized the prior administration for what he described as a hurried decision-making process, indicating a lack of thorough financial scrutiny prior to the allocation of these federal awards, particularly those made during the transition period between the last presidential election and the inauguration of President Trump.
The decision also impacted two major awards worth a combined $540 million that were set to support Calpine, a key electricity producer in the U.S. The company planned to capture and store carbon emissions from its natural gas power plants located in Yuba City, California, and Baytown, Texas.
In a statement regarding the cuts, Energy Secretary Chris Wright emphasized that the projects did not meet the economic viability criteria necessary to ensure a responsible return on taxpayer investment. He criticized the prior administration for what he described as a hurried decision-making process, indicating a lack of thorough financial scrutiny prior to the allocation of these federal awards, particularly those made during the transition period between the last presidential election and the inauguration of President Trump.
