In brief
In a controversial decision, the Energy Department announced the cancellation of $3.7 billion in awards aimed at advancing technologies to combat climate change.
May 30, 2025 - The United States Energy Department has taken a major step back in the fight against global warming by canceling $3.7 billion in funding for innovative projects designed to reduce emissions. The decision, announced on Friday, affects 24 awards, some of which were intended to support efforts in the chemicals, cement, glass, and iron industries to lower their environmental impact.Among the significant projects impacted by this decision was a $331 million grant to Exxon Mobil, which had aimed to generate lower-emissions hydrogen at a facility in Baytown, Texas. Other notable cancellations included $540 million allocated to Calpine, a leading electricity producer, for carbon capture initiatives at its natural gas power plants in Yuba City and Baytown.Energy Secretary Chris Wright defended the terminations, stating that the projects did not effectively address energy needs, were economically unfeasible, and would not provide a beneficial return on taxpayer investment. Wright criticized the previous administration for inadequately reviewing these awards, claiming that 16 were rushed through the system between Election Day and the inauguration of President Trump on January 20. The decision to cancel the funding reflects a shift in approach toward energy policy and funding allocation, emphasizing scrutiny on economic viability and relevance to the American energy landscape.
