The Energy Department announced the termination of funding earmarked for innovative projects to tackle global warming, citing economic viability concerns.
Energy Department Halts $3.7 Billion Funding for Emission-Reduction Technologies
Energy Department Halts $3.7 Billion Funding for Emission-Reduction Technologies
The cancellation affects 24 awards aimed at developing technologies to combat climate change.
On May 30, 2025, the U.S. Energy Department reported it would be cutting $3.7 billion in awards previously allocated to various companies as part of an initiative to develop technologies that aim to reduce greenhouse gas emissions. The decision involves 24 separate awards aimed at addressing pollution from industries such as cement, iron, glass, and chemicals, while also including projects to capture and store carbon dioxide from industrial emissions.
Among the notable cancellations was a $540 million grant allocated to Calpine, one of the major electricity producers in the U.S., which had intended to invest in carbon capture technology at two of its natural gas-powered plants located in Yuba City, California, and Baytown, Texas. Additionally, a $331 million award to Exxon Mobil, intended to facilitate the transition from natural gas to hydrogen fuel at a facility in Baytown, was also scrapped.
Energy Secretary Chris Wright justified the cancellations, stating that the selected projects “failed to advance the energy needs of the American people” and were deemed economically unviable. Wright criticized the previous administration's process for failing to perform adequate financial reviews, suggesting that the rush to award these grants was problematic, particularly since a significant number were approved between Election Day and President Trump's inauguration.
