The Department of Energy announced today its decision to rescind $3.7 billion in awards assigned during the Biden administration, impacting various clean energy and manufacturing initiatives. An assortment of recognized corporations and rising startups are affected by this cancellation.
Energy Secretary Chris Wrights described the decision as an exercise in “due diligence” undertaken by the Trump administration. Although Wrights did not outline specific reasons for terminating these projects, he referenced a recent memorandum from May 15, indicating that the department might utilize audit procedures to revise or revoke federal financial awards.
Altogether, 24 projects are set to lose their funding. Among the companies affected by this move include energy giant Exxon Mobil, multinational food company Kraft Heinz, technological innovator Skyven, and sustainable materials startups Brimstone and Sublime Systems.
The scale of potential funding recalls varies considerably; Exxon Mobil stands to lose approximately $331.9 million allocated for its Baytown Olefins chemical facility, while Eastman Chemical Company’s molecular plastic recycling plant in Longview faces a withdrawal of $375 million. Additionally, clean technologies like Skyven Technologies’ heat pump steam generation, Brimstone Energy’s innovative production of low-carbon materials, and Sublime Systems’ effort to create low-carbon cement all face sizable setbacks of $15.3 million, $189 million, and $86.9 million, respectively.
Companies were caught off guard by the department’s announcement, with Sublime Systems expressing shock and frustration. A spokesperson for Sublime described the cancellation as surprising and disappointing, citing evidence of significant progress the startup has made in scaling up its technology, creating partnerships, and securing its customer base.
Meanwhile, Brimstone Energy remains cautiously optimistic about resolving this funding issue with the Department of Energy. Spokesperson Liza Darwin emphasized the project’s strong alignment with the administration’s goal to secure domestic critical mineral production, specifically alumina. Darwin noted that Brimstone’s innovative refinery was positioned as the only viable domestic source capable of producing alumina economically, potentially revitalizing U.S. aluminum production and creating thousands of jobs. The company considers the funding decision to be based on a misunderstanding, and looks forward to clarification and reconciliation from the department.
