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 nationwide that 鈥渇ailed to advance the energy needs of the American people,鈥� according to U.S. Energy Secretary Chris Wright.
鈥淭he 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,鈥� he said.
Among the canceled awards is a $331.9 million grant to to replace natural gas with hydrogen at its Baytown Olefins Plant 鈥� a move that was expected to cut the facility鈥檚 emissions by more than half. Also canceled were a $270 million grant to Calpine for a in Baytown, a $375 million award to for a molecular recycling project in Longview, and a $99 million grant to Orsted for a along the Gulf Coast.
A spokesperson for ExxonMobil declined to comment on Friday. Calpine, Eastman Chemical and Orsted didn鈥檛 immediately respond to requests for comment.
The decision comes more than a year after the federal government announced for dozens of industrial decarbonization projects across the country, including six in Texas. With Friday鈥檚 announcement, funding for four of the six Texas projects has now been rescinded.
According to Energy Secretary Wright, the decision is expected to generate 鈥渁n immediate $3.6 billion in savings for the American people.鈥� Critics, however, argue the cancellations threaten the country鈥檚 energy innovation and manufacturing future.
鈥淭his program could have been a centerpiece of achieving the administration鈥檚 goal to bring manufacturing back to the United States,鈥� said Steven Nadel, executive director of the American Council for an Energy-Efficient Economy. 鈥淐hoosing to cancel these awards is shortsighted, and I think we鈥檙e going to look back at this moment with regret.鈥�
