Trump Administration Cuts Clean Energy Projects
WASHINGTON — Four Texas projects were among two dozen clean energy projects that lost grants under cuts announced Friday by the Trump administration.
U.S. Secretary of Energy Chris Wright on Friday announced the termination of the awards that were issued by the Office of Clean Energy Demonstrations and totaled more than $3.7 billion.
Reasons Behind the Cuts
Wright said in a news release the projects failed to advance U.S. energy needs, were not economically viable and would not deliver taxpayers a good return on their investment.
“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, 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,” Wright said in the release.
Details of the Canceled Projects
Most of the awards were signed between Election Day and Trump’s inauguration, according to the release, and were primarily focused on carbon capture and sequestration efforts, as well as decarbonization initiatives.
The department said it used a recently implemented review process to determine the awards were not worthwhile.
The department provided a list of the canceled amounts, companies and locations, including several based in Texas. The list did not include details about the projects, but the figures lined up with previously announced awards.
Texas Projects Affected
The canceled Texas awards are:
– Orsted Star P2X LLC’s award of $99 million for a project in Chambers County. Orsted announced last year its “Star e-Methanol” plant had been selected to receive federal funding to demonstrate commercial-scale decarbonization solutions.
– Calpine Texas CCUS Holdings’ award of $270 million in Baytown. The indirect subsidiary of Calpine received an award of up to that amount to build a demonstration facility capturing carbon dioxide from a power plant.
– Exxon Mobil Corp.’s award of more than $331 million in Baytown. The company received an award in that amount to enable the use of hydrogen in place of natural gas at its Baytown olefins plant.
– Eastman Chemical Co.’s award of $375 million in Longview. The company had been awarded that amount of money for a recycling facility.
Impact on the Projects
It was not immediately clear whether impacted projects would proceed without the federal money.
Conclusion
The Trump administration’s decision to cut clean energy projects has sparked controversy and raised questions about the future of renewable energy in the United States. The canceled projects were aimed at reducing carbon emissions and promoting sustainable energy sources, but the administration deemed them not economically viable.
FAQs
Q: What happened to the clean energy projects?
A: The Trump administration cut funding for two dozen clean energy projects, including four in Texas, due to concerns about their economic viability and ability to advance U.S. energy needs.
Q: How much money was allocated to the canceled projects?
A: The total amount allocated to the canceled projects was over $3.7 billion.
Q: What were the projects focused on?
A: The projects were primarily focused on carbon capture and sequestration efforts, as well as decarbonization initiatives.
Q: Will the projects proceed without federal funding?
A: It is unclear whether the impacted projects will proceed without federal funding.
