Key Impact Points:
- $3.7 billion withdrawn: The U.S. Department of Energy canceled 24 decarbonization project awards, including carbon capture initiatives by Calpine, ExxonMobil, and Ørsted.
- Calpine loses $540M: Its CCS projects at gas-fired plants in Yuba City, CA and Baytown, TX are among the largest affected.
- Trump-era deals reversed: 16 of the 24 canceled awards were signed between November 2024 and January 20, 2025.
DOE Terminates $3.7 Billion in Climate Awards
The U.S. Department of Energy has rescinded $3.7 billion in previously announced awards for carbon capture and decarbonization projects. Among those affected are Calpine Texas CCUS Holdings, LLC, ExxonMobil, Ørsted Star P2X LLC, and PPL Corporation, according to a project list released Friday.
The decision affects 24 projects, including $540 million granted to Calpine for CCS development at two major gas plants. One was planned for its 550 MW Sutter facility in Yuba City, California; the other for its 810 MW Baytown plant in Texas.
“After a thorough and individualized financial review of each award, the DOE found that these projects failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars,” the DOE said in a statement.
Political Timing and Funding Oversight
The DOE noted that 16 of the canceled awards were signed between the 2024 U.S. presidential election and Inauguration Day, aligning the decision with concerns over late-stage financial commitments.
The cancellations follow a new DOE review process for more than 179 awards, totaling over $15 billion in potential financial assistance. These reviews target large-scale projects under the Office of Clean Energy Demonstrations (OCED), which was created in 2021 to manage over $27 billion in funding from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
Industry and Advocacy Reactions
Several industry groups criticized the DOE’s move, warning it undermines both climate goals and industrial competitiveness.
“Locking domestic plants into outdated technology is not a recipe for future competitiveness or bringing manufacturing jobs back to American communities,” said Steven Nadel, executive director of the American Council for an Energy-Efficient Economy.
“The cancellations are a major step backward in the nationwide deployment of carbon management technologies,” said Jessie Stolark, executive director of the Carbon Capture Coalition.
“American workers, fenceline communities, and forward-thinking companies have had the rug pulled out from under them,” said Iliana Paul, deputy director for industrial transformation at the Sierra Club.
List of Canceled Awards
The canceled projects span industries and geographies—from cement and glass manufacturing to food production and chemical processing. Notable recipients include:
- Exxon Mobil Corporation – $331,885,548 for a project in Baytown, TX
- PPL Corporation – $72,016,473 for a project in Louisville, KY
- Ørsted Star P2X LLC – $99,000,000 for a project in Chambers County, TX
- National Cement Company of California, Inc. – $500,000,000 for a project in Lebec, CA
- Heidelberg Materials US, Inc. – $500,000,000 for a project in Louisiana
- Eastman Chemical Company – $375,000,000 for a project in Longview, TX
The full list of awardees and dollar amounts totals $3,729,035,865, with projects initially expected to span more than 15 states.
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