DOE Cancels $3.7B in Carbon Capture, Decarbonisation Projects
The 24 projects were not bringing in good returns for taxpayers, claims the DOE.
Secretary Wright said this decision would immediately save taxpayers $3.6 billion.
Most of these projects were approved by the previous administration during its last leg.
The U.S. Department of Energy (DOE) has terminated 24 clean energy projects funded by the Office of Clean Energy Demonstrations (OCED), U.S. Secretary of Energy Chris Wright announced.
With the latest decision, more than $3.7 billion in taxpayer-funded financial support awarded to the projects was cancelled.
The decision comes on the heels of a meticulous assessment by the DOE, which found that the projects were not financially viable for taxpayers and not economically feasible, as well as not contributing to advancing U.S. energy needs.
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Approximately 16 of the 24 projects (70%) cancelled were initiated during the period between Election Day and the presidential inauguration, which means they were approved by the previous administration in the run-up to the election.
Many of these projects were intended to support carbon capture and sequestration (CCS) and decarbonisation initiatives, aiming to reduce greenhouse gas emissions and transition to clean energy. The DOE says this decision would immediately save taxpayers $3.6 billion.
“Today, we are acting in the best interest of the American people by cancelling these 24 awards," said Secretary Wright.
Very recently, the DOE released a document titled "Ensuring Responsibility for Financial Assistance," which is essentially a set of guidelines for evaluating financial support projects. It reportedly aims to prevent waste, protect national security, and align with President Trump’s energy priorities.
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"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," concludes the Secretary.
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Source: DOE
