The U.S. Department of Energy has canceled 24 grants totaling over $3.7 billion that were aimed at reducing greenhouse gas emissions in manufacturing. The terminated projects were primarily focused on funding carbon capture and sequestration processes to reduce carbon dioxide emissions. Energy Secretary Chris Wright announced the cancellations, stating that the projects “failed to advance the energy needs of the American people,” were too expensive, and would not earn a positive return on investment.
Nearly 70% of these projects were signed between Election Day and January 20. Two of the canceled grants were in Indiana, one in Noble County and the other at Heidelberg Materials’ cement plant in Mitchell, Lawrence County. Heidelberg Materials had planned to use a $500 million federal grant to store its carbon emissions underground.
Energy grants cancellation impacts industry
David Perkins, senior vice president of sustainability and public affairs for Heidelberg Materials North America, expressed disappointment and concern over the decision. In Alabama, a $75 million grant for AMERICAN Cast Iron Pipe Company in Birmingham and a $75.5 million grant for United States Pipe and Foundry Company in Bessemer were also among the terminated awards.
AMERICAN Cast Iron Pipe Company intended to use the funding to upgrade its ductile iron pipe operations to electric-powered furnaces, while U.S. Pipe was awarded the funding to replace its coke-fired furnace with electric induction melting furnaces. Advocates for decarbonizing heavy industry dispute the DOE’s decision, arguing that such projects would make U.S. industries more competitive globally and create jobs. Ash Lauth, senior campaign strategist on cement and concrete for Industrious Labs, questioned the legality of the DOE’s decision, pointing out that private companies had signed agreements with the DOE.
The DOE stated that the terminated awards did not meet the necessary economic, national security, or energy security standards to justify the investment. By canceling these awards, the DOE is generating an immediate $3.6 billion in savings for taxpayers.
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