The U.S. government is contemplating the cancellation of an additional $12 billion in clean energy funding, which includes awards for auto manufacturing and carbon capture, as revealed in a list of targeted projects seen by Reuters. Among the projects on the list are two major direct air capture hubs that previously received billion-dollar awards from the Biden administration, one of which involves Occidental Petroleum. Additionally, awards for General Motors to convert a Michigan assembly plant to EVs, Stellantis to build electric trucks in Illinois, and produce EV components in Indiana are also at risk.
This potential cancellation comes on the heels of the Department of Energy’s announcement to cancel $7.56 billion in financing for numerous energy projects deemed inadequate in returns for taxpayers. The lack of sufficient information from DOE officials and the non-response from Occidental, GM, and Stellantis add uncertainty to the situation. The White House’s plan to terminate climate-related funding in various Democratic-led states further muddies the waters of clean energy initiatives.