Trump Administration Pulls Plug on $3.7 Billion in Biden-Era Clean Energy & Manufacturing Awards, Startups and Giants Hit
Washington D.C. – The Department of Energy (DOE) today announced a significant reversal of prior commitments, confirming it will claw back $3.7 billion in awards designated for clean energy and manufacturing projects under the Biden administration. The decision impacts a wide array of recipients, from major corporations like Exxon Mobil and Kraft Heinz to innovative startups such as Skyven, Brimstone, and Sublime Systems.
Energy Secretary Chris Wrights characterized the move as an act of “due diligence” on behalf of the Trump administration. While his official statement did not provide specific reasons for the cancellation of individual projects, it pointed to a memorandum he issued on May 15. This memo suggests the department may leverage its audit powers to rescind the previously approved funding.
In total, 24 projects now face an uncertain future. These initiatives span various sectors, including advanced materials, industrial decarbonization, and chemical manufacturing.
Here’s a glimpse at some of the significant awards now in jeopardy:
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
The news has caught several recipients off guard. Sublime Systems, a startup focused on low-carbon cement, expressed its dismay.
“Sublime was surprised and disappointed to receive the news about the termination of our Industrial Demonstrations Program award, given the clear progress we’ve made in scaling our American-invented technology, partnering with some of the Western World’s largest cement producers, and generating a bankable customer base,” spokesperson Rob Kreis told TechCrunch via email. The company is reportedly evaluating its options to continue its scaling efforts.
Brimstone Energy, another startup aiming to produce low-carbon cement and the critical mineral alumina, remains hopeful for a resolution with the DOE.
“Given our project’s strong alignment with President Trump’s priority to increase U.S. production of critical minerals, we believe this was a misunderstanding,” Brimstone spokesperson Liza Darwin stated to TechCrunch. “Brimstone’s Rock Refinery represents the only economically viable way to produce the critical mineral alumina in the U.S. from U.S.-mined rocks.”
Darwin further emphasized the project’s potential, adding, “As the first U.S.-based alumina plant in a generation, our project — which would also make portland cement —would clear a ‘mine-to-metal’ path for U.S. aluminum production, fortifying the U.S. critical mineral supply chain and creating thousands of jobs.”
This sweeping clawback signals a potentially significant shift in federal support for projects aimed at decarbonizing industry and bolstering domestic clean energy manufacturing, leaving many companies scrambling to understand the full implications and their path forward.
