The U.S. Department of Energy on Friday canceled more than $1 billion in clean energy funding for Texas as part of a continuing effort to reduce federal spending.
The move is part of a broader rollback of 24 clean energy projects nationwide that “failed to advance the energy needs of the American people,” according to U.S. Energy Secretary Chris Wright.
“The Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,” he said.
Among the canceled awards is a $331.9 million grant to ExxonMobil to replace natural gas with hydrogen at its Baytown Olefins Plant — a move that was expected to cut the facility’s emissions by more than half. Also canceled were a $270 million grant to Calpine for a carbon-capture facility in Baytown, a $375 million award to Eastman Chemical for a molecular recycling project in Longview, and a $99 million grant to Orsted for a clean methanol initiative along the Gulf Coast.
A spokesperson for ExxonMobil declined to comment on Friday. Calpine, Eastman Chemical and Orsted didn’t immediately respond to requests for comment.
The decision comes more than a year after the federal government announced $6 billion in funding for dozens of industrial decarbonization projects across the country, including six in Texas. With Friday’s announcement, funding for four of the six Texas projects has now been rescinded.
According to Energy Secretary Wright, the decision is expected to generate “an immediate $3.6 billion in savings for the American people.” Critics, however, argue the cancellations threaten the country’s energy innovation and manufacturing future.
“This program could have been a centerpiece of achieving the administration’s goal to bring manufacturing back to the United States,” said Steven Nadel, executive director of the American Council for an Energy-Efficient Economy. “Choosing to cancel these awards is shortsighted, and I think we’re going to look back at this moment with regret.”
