US Energy Department to Cut Funding for Carbon-Capture Plants, Threatening Climate Goals

Trump Administration May Cut Funding for Carbon-Sucking Factories, Sparking Concerns Over Climate Goals The US Department of Energy is reportedly poised to terminate funding for two major direct-air capture (DAC) plants, which could have significant implications for the country's climate goals and the future of carbon removal technology. According to a department-issued list obtained by MIT Technology Review, the South Texas Direct Air Capture Hub and Project Cypress in Louisiana may lose their initial $50 million grant awards, totaling over $100 million. The South Texas Direct Air Capture Hub, developed by Occidental Petroleum's 1PointFive subsidiary, was expected to receive up to $500 million in government grants as part of a larger initiative to promote carbon capture and storage (CCS) technology. Project Cypress, a collaboration between Battelle, Climeworks, and Heirloom, was also set to receive significant funding under the same program. The potential termination of these projects raises concerns about the impact on the country's climate goals. The US has committed to reducing greenhouse gas emissions by 50-52% below 2005 levels by 2030, and DAC technology is seen as a crucial component in achieving this goal. By capturing CO2 directly from the air, these plants could have helped reduce emissions from industrial sources and supported the development of low-carbon energy. The implications for the companies involved are also significant. Occidental Petroleum's 1PointFive subsidiary had already invested heavily in the South Texas project, and a loss of funding could impact their bottom line. Climeworks, a Swiss-based company that specializes in DAC technology, has partnered with several major corporations to develop similar projects around the world. The decision to terminate funding for these projects may also have broader implications for the market. The US Department of Energy had announced plans to provide up to $3.5 billion in grants and loans to support the development of CCS and DAC technology. If this funding is reduced or eliminated, it could impact the competitiveness of these technologies and make it more difficult for companies to invest in them. Stakeholders are expressing concern over the potential loss of funding. Erin Burns, executive director of Carbon180, a nonprofit that advocates for carbon removal and reuse, notes that "the termination of these projects could have serious consequences for our ability to meet climate goals." She adds that it's unclear whether the full funding would be canceled or if this is just an initial step in the process. The future outlook for DAC technology remains uncertain. While some companies are exploring alternative funding sources and partnerships, others may be forced to reassess their investment strategies. As the world continues to grapple with climate change, the development of effective carbon removal technologies will be crucial to achieving global emissions reductions goals. Key Statistics: $100 million in initial grant awards at risk for termination Up to $500 million in total funding possible for each project 50-52% reduction in greenhouse gas emissions committed by US by 2030 $3.5 billion in grants and loans announced by US Department of Energy for CCS and DAC technology Market Context: The development of direct-air capture (DAC) technology has gained momentum in recent years, with several major corporations investing in projects around the world. The US Department of Energy had announced plans to provide significant funding to support the development of CCS and DAC technology, but the potential termination of these grants could impact the competitiveness of these technologies. Stakeholder Perspectives: Erin Burns, executive director of Carbon180: "The termination of these projects could have serious consequences for our ability to meet climate goals." Occidental Petroleum's 1PointFive subsidiary: No comment available at this time. Climeworks: "We are committed to developing DAC technology and will continue to explore alternative funding sources and partnerships." Next Steps: The US Department of Energy has not yet made an official announcement regarding the termination of these projects. Stakeholders are urging the department to provide clarity on the situation and consider the long-term implications for climate goals and the development of carbon removal technologies. *Financial data compiled from Technologyreview reporting.*