US Energy Secretary Chris Wright has canceled $3.7 billion in grants awarded to 24 projects focused on decarbonization and carbon capture technology. Despite bipartisan support for the efforts, many Republicans argue that the climate benefits are not worth the cost.
The decision comes despite congressional Republicans leaving tax credits intact for carbon capture and sequestration in draft legislation. However, other conservatives claim that the technology drives up costs for electricity and industrial products.
Diana Furchtgott-Roth, director of the Heritage Foundation’s Center for Energy, Climate and Environment, believes that supporting projects without subsidies is not economical. “You’re burying this carbon and it costs a lot of money,” she said. “The question is, is it worth it? I would argue no.”
The cancellations are part of an Energy Department audit aimed at eliminating fraud, waste, and abuse. The department did not conduct a thorough financial review before making the awards, according to Wright.
Ten of the grants involved carbon capture technology, with others focusing on electrifying industrial processes or implementing decarbonization efforts. The terminated grants include awards for companies like ExxonMobil and Kraft Heinz.
The decision has been criticized by Rep. Zoe Lofgren (D-California), who argued that the Energy Department should have made public its assessments of the grants. The American Council for an Energy-Efficient Economy also criticized the move, saying it would undermine efforts to bring manufacturing back to the US.
Wright’s statement did not provide additional details on the cancellations, which were announced as part of a broader effort to review financial assistance awards totaling $15 billion.
Source: https://www.washingtonpost.com/climate-environment/2025/05/30/energy-department-grant-cancelations