Trump Administration Recalls $3.7B in Energy & Manufacturing Funds

Department of Energy Recalls Billions in Clean Energy Funding

The Department of Energy has announced the rescission of $3.7 billion in awards granted during the Biden administration, impacting both established corporations and emerging startups within the clean energy and manufacturing sectors.

Secretary of Energy Chris Wright characterized these actions as standard “due diligence.” While the official statement lacked specific justifications for the project cancellations, it referenced a May 15th memorandum. This memo indicates the department may leverage its auditing authority to reclaim awarded funds.

Affected Projects and Companies

A total of 24 projects are currently affected by this decision. These include initiatives spearheaded by major industry players like Exxon Mobil and Kraft Heinz, alongside innovative companies such as Skyven, Brimstone, and Sublime Systems.

The following represents a selection of the awards facing potential withdrawal:

• American Cast Iron Pipe Company (metal manufacturing): $75 million
• Brimstone Energy (low-carbon materials): $189 million
• Calpine’s Baytown Energy Center (natural gas power plant): $270 million
• Calpine’s Sutter Energy Center (natural gas power plant): $270 million
• Eastman Chemical Company’s Longview Plant (molecular plastic recycling): $375 million
• Exxon Mobil’s Baytown Olefins Plant (chemical plant): $331.9 million
• Skyven Technologies (heat pump steam generation): $15.3 million
• Sublime Systems (low carbon cement): $86.9 million

Company Responses

Sublime Systems expressed surprise at the news. A spokesperson, Rob Kreis, communicated via email that the company was “surprised and disappointed” by the termination notice, citing substantial progress in technology scaling and the establishment of a strong customer base.

The startup is currently assessing its options to ensure continued operational growth.

Brimstone, however, remains optimistic about a resolution with the DOE.

Liza Darwin, a Brimstone spokesperson, stated via email that the company believes the situation stems from a misunderstanding. She emphasized the project’s alignment with the administration’s goals of bolstering domestic critical mineral production.

Darwin further explained that Brimstone’s “Rock Refinery” is uniquely positioned to enable economically viable alumina production within the U.S., utilizing domestically sourced materials. The project, representing the first new U.S. alumina plant in decades, is projected to create numerous jobs and strengthen the nation’s critical mineral supply chain.