DOE Cancels $7.5B in Clean Energy Projects, Sparking Policy Stability Concerns
The US Department of Energy (DOE) has cancelled over $7.5 billion in funding for 223 clean energy projects, raising concerns about policy stability. The move, defended by the DOE as a matter of fiscal discipline, has sparked criticism from state leaders and trade groups.
The cancellations include major hydrogen hub projects, nearly half of direct air capture hub grants, and other smaller initiatives. They follow a previous round in May 2023, where 24 clean energy projects, many energy capture-related, were also cancelled.
Trade groups and state leaders warn that these cancellations could undermine investment confidence and weaken American competitiveness. Politicians from affected states have criticized the move as partisan. Washington Governor Bob Ferguson called it 'outrageous', while California Governor Gavin Newsom described it as 'Trump's America' where energy policy is set by the highest bidder.
The DOE, under Secretary Chris Wright, argues that many projects were rushed through with inadequate documentation. Award recipients have 30 days to appeal the termination decision, and some projects have already begun this process. The fate of many projects remains uncertain due to potential lawsuits and the ongoing appeal process.
The cancellations raise questions about the US's ability to provide policy stability for clean energy investments, particularly in hydrogen and carbon capture technologies. With over $7.5 billion in funding at stake and potential legal challenges ahead, the clean energy sector awaits further developments.
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