The U.S. Department of Energy announced on Friday (30th) the cancellation of 24 clean energy projects approved during former President Biden’s administration, totaling more than $3.7 billion. Among these projects is a complex facility of ExxonMobil (XOM-US) located in Baytown, Texas. The current Trump administration is reviewing public funding grants and loans allocated to emerging technology projects during the Biden administration. The Trump administration is currently pushing for record-high oil and natural gas production while gradually dismantling Biden’s climate and clean energy policies.

Among the canceled projects is ExxonMobil's Baytown facility, which was originally slated to receive $332 million for its carbon reduction initiatives aimed at replacing natural gas with hydrogen for ethylene production (ethylene is a key raw material for textiles and plastic resins). Other canceled projects include a $500 million subsidy for Heidelberg Materials USA in Louisiana, and a $375 million subsidy for Eastman Chemical Company in Longview, Texas. The Department of Energy noted that nearly 70% of the grant contracts were signed between November 5, 2024 (Election Day) and January 20, 2025 (the end of Biden's term).

The aforementioned companies have yet to respond to media inquiries. Carbon capture projects were originally seen as crucial solutions to mitigate climate change, as they can directly remove carbon dioxide from the atmosphere or sources of pollution (such as refineries, coal-fired power plants, and ethanol production facilities), and sequester it underground. Sometimes, carbon dioxide is injected into old oil fields to enhance crude oil production.

According to a list obtained by Reuters in April, around 24 clean energy projects that the Trump administration is likely to cut were previously supported by the Department of Energy’s Office of Clean Energy Demonstration (OCED). This includes four carbon capture demonstration projects totaling $309 million, as well as three advanced carbon capture, transportation, and storage technology projects located in California, Texas, and North Dakota, totaling $890 million.

This wave of project cancellations reflects a clear shift in the Trump administration’s energy policy, focusing on the extraction and production of fossil fuels rather than the research, development, and promotion of clean energy.