"Trump administration strikes back: $3.7B in clean energy and manufacturing awards to be reclaimed"

The Department of Energy claws back $3.7 billion in clean energy awards

The Department of Energy made a surprising announcement today, revealing that it would be rescinding $3.7 billion worth of awards given out by the Biden administration for clean energy and manufacturing projects. This move has affected both large corporations and growing startups, leaving many caught off guard.

Energy secretary Chris Wright defended the decision as a necessary step in conducting “due diligence” on behalf of the Trump administration. While specific reasons for the cancellations were not provided, Wright pointed to a memorandum issued on May 15, indicating that the department may use its audit powers to void the awards.

A total of 24 projects have been impacted by this decision, including those led by industry giants like Exxon Mobil and Kraft Heinz, as well as innovative startups such as Skyven, Brimstone, and Sublime Systems.

In jeopardy are awards like:
– American Cast Iron Pipe Company (metal manufacturing): $75 million
– Brimstone Energy (low-carbon materials): $189 million
– Calpine’s Baytown Energy Center (natural gas power plant): $270 million
– Exxon Mobil’s Baytown Olefins Plant (chemical plant): $331.9 million
– And others

Sublime Systems expressed surprise and disappointment at the termination of their award, citing significant progress in scaling their technology. Brimstone remains hopeful for a resolution with the DOE, emphasizing the importance of their project in strengthening the U.S. critical mineral supply chain.

As the industry reacts to these developments, it’s clear that the landscape of clean energy and manufacturing projects is facing new challenges and uncertainties.