DOE Scraps $7.5B Clean Energy Projects in Democratic Strongholds

The Department has not yet made public the list of projects affected by the cancellations. However, sources like E&E News and Heatmap have obtained the list, revealing that most of the cuts have impacted states that supported Kamala Harris in the last presidential election. Some projects in “red” states that voted for President Trump have also been affected.

Projects related to direct air capture and hydrogen hubs seem to have been eliminated as a result of the cancellations. For instance, California Governor Gavin Newsom mentioned that a canceled project included $1.2 billion designated for the state’s hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems. Reports indicate that hydrogen hubs in Texas and Louisiana were also impacted.

While 10 direct air capture (DAC) projects worth $47.3 million were cut, projects in Alaska, Kentucky, Louisiana, and North Dakota were spared. The oil and gas industry has shown support for DAC initiatives as captured CO₂ can enhance production in underperforming oil wells.

Several states, including Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Vermont, and Washington, have been affected by the cancellation of contracts worth billions of dollars.

Russell Vought, the director of the Office of Management and Budget, confirmed the states with canceled projects in a tweet. All 16 states listed voted for Kamala Harris in the previous election, with many being under Democratic control at the state level. Interestingly, Trump-voting states on the list were omitted from Vought’s announcement.

The original awards were granted by various offices, including Advanced Research Projects Agency-Energy, Clean Energy Demonstrations, Energy Efficiency and Renewable Energy, Fossil Energy, Grid Deployment, and Manufacturing and Energy Supply Chains.

According to the Department of Energy, 26% of the awards were given between Election Day and Inauguration Day in January. The president retains authority until the Inauguration Day, even after the election.

Awardees have a 30-day window to appeal the decision made by the Department.

The Trump administration’s stance against transitioning away from fossil fuels has been evident. Recently, the Department of Energy prohibited the use of certain terms like “climate change” and “emissions.” In a similar move, $3.7 billion worth of clean energy and manufacturing awards were canceled in May, affecting a wide range of industries.

These aggressive cancellations have led many recipients to legally challenge the government’s decisions. The Environmental Protection Agency faced legal actions after canceling contracts worth $20 billion, with varying outcomes in court rulings.

Regarding the recent cancellations by the Department of Energy, several awardees have already initiated the appeal process.

Update: The article and headline have been revised to provide additional insights into the impacted states and programs.