Department of Energy Cancels $7.5B in Clean Energy Projects
The Department of Energy (DOE) announced on Wednesday night that it was canceling 321 awards worth $7.56 billion, primarily focused on clean energy initiatives. According to reports from EE News and Heatmap, the majority of these cuts affected states that voted for Democratic presidential candidate Kamala Harris in the last election.
The canceled projects include direct air capture (DAC) and hydrogen hub initiatives, which were seen as crucial components in reducing greenhouse gas emissions. California Governor Gavin Newsom expressed disappointment over the cancellation of $1.2 billion allocated to the state's hydrogen hub project, the Alliance for Renewable Clean Hydrogen Energy Systems. EE News reports that similar hubs in Texas and Louisiana also faced cancellation.
A total of 10 DAC projects worth $47.3 million were cut, but those in Alaska, Kentucky, Louisiana, and North Dakota managed to survive. The oil and gas industry has been supportive of DAC projects due to the potential for captured CO2 to be injected into underperforming oil wells, boosting production.
Background on these clean energy initiatives is essential to understanding the significance of this move. Direct air capture technology involves capturing CO2 from the atmosphere, which can then be utilized in various applications, including enhanced oil recovery and carbon utilization. Hydrogen hubs, on the other hand, aim to produce hydrogen fuel through electrolysis, using renewable energy sources.
Industry experts have expressed concern over the cancellation of these projects, citing the potential for job losses and delays in achieving clean energy goals. "This move sends a mixed signal about the administration's commitment to reducing greenhouse gas emissions," said an industry insider. "The DOE should reconsider its decision and support initiatives that can help mitigate climate change."
As the news spreads, lawmakers are calling for transparency on the reasons behind this sudden cancellation. The DOE has yet to release a list of affected projects, leaving many in the clean energy sector uncertain about their future.
In response to questions from TechCrunch, a DOE spokesperson stated, "The Department of Energy is committed to supporting initiatives that align with its mission and goals. We will continue to work towards reducing greenhouse gas emissions while ensuring responsible use of taxpayer dollars."
As the situation unfolds, stakeholders are left wondering what this means for the clean energy sector and the country's efforts to combat climate change. The cancellation of these projects may have significant implications for states and industries reliant on them.
Current Status:
321 awards worth $7.56 billion canceled by DOE
Majority of cuts affect states that voted for Kamala Harris in the last election
Direct air capture and hydrogen hub initiatives largely affected
Industry experts express concern over potential job losses and delays in achieving clean energy goals
Next Developments:
DOE to release list of affected projects, if any
Lawmakers to continue pushing for transparency on reasons behind cancellation
Stakeholders to assess impact on clean energy sector and climate change efforts
*Reporting by Techcrunch.*
