Wedoany.com Report-Jun 4, U.S. Secretary of Energy Chris Wright has announced the termination of 24 financial assistance awards previously issued by the Office of Clean Energy Demonstrations (OCED), totaling over $3.7 billion. The decision was based on a comprehensive review of each project’s economic viability and alignment with national energy priorities.

According to the Department of Energy (DOE), 16 of the cancelled awards were finalized between Election Day and January 20. The projects included various carbon capture and sequestration (CCS) and decarbonization initiatives. The DOE stated 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."

Though the DOE did not publicly list specific cancellations, Bloomberg reported that affected awards included $331 million for ExxonMobil’s hydrogen project at its Baytown refinery in Texas, $170 million for Kraft Heinz to support clean energy developments, $500 million for Heidelberg Materials' low-carbon cement initiative, $375 million for Eastman Chemical’s molecular recycling facility in Longview, Texas, and $270 million for Calpine subsidiaries’ CCS projects in Baytown, Texas, and near Yuba City, California.

Secretary Wright commented on the decision: “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. Today, we are acting in the best interest of the American people by cancelling these 24 awards.”

Earlier in the month, DOE released a Secretarial Memorandum titled “Ensuring Responsibility for Financial Assistance,” outlining its policy for reviewing and evaluating financial support programs. Each of the 24 awards was assessed under this updated framework. The DOE concluded that the projects did not meet the standards necessary in terms of economic performance, national security value, or energy security contributions.

This action reflects DOE’s revised approach to energy funding, emphasizing rigorous assessment and alignment with strategic goals. The decision is part of a broader effort to redirect resources toward initiatives that offer measurable benefits in terms of reliability, sustainability, and return on investment for the American energy sector.