DOE Cancels $3.7 Billion In Biden-Era Green Energy Awards

Authored by Tom Ozimek via The Epoch Times,

The Department of Energy has canceled 24 clean energy demonstration projects worth nearly $3.7 billion, citing concerns over financial viability, insufficient return on taxpayer investment, and a failure to meet the energy needs of Americans.

Energy Secretary Chris Wright announced the decision on May 30, describing the awards as hastily approved in the final days of the Biden administration and misaligned with the Trump administration’s energy and economic priorities. The cancellations come after an internal review ordered earlier this month under a new departmental policy aimed at increasing accountability and rooting out waste in federally funded energy programs.

“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,” Wright said. “Today, we are acting in the best interest of the American people by cancelling these 24 awards.”

According to a department list reviewed by The Epoch Times, the terminated awards include high-dollar carbon capture and industrial decarbonization projects involving firms such as ExxonMobil, Calpine, Heidelberg Materials, and Kraft Heinz. Sixteen of the 24 awards were signed between Election Day 2024 and Inauguration Day 2025.

The rescinded projects span a range of industries and regions, including glass manufacturing facilities in Ohio, carbon capture efforts in Texas and California, and decarbonization initiatives at food production sites nationwide. The largest award canceled was a $500 million grant to Heidelberg Materials for a carbon capture project in Louisiana.

The move follows a May 15 memorandum issued by Wright titled “Ensuring Responsibility for Financial Assistance,” which established new standards for evaluating financial assistance programs. Under the policy, DOE is now requiring detailed financial, technical, and legal documentation from all recipients and reserving the right to modify or terminate awards that fail to meet economic or national interest benchmarks.

Earlier oversight efforts had flagged the risk of poorly vetted loans and grants under Biden-era programs.

A November 2024 report from the DOE’s Office of Inspector General warned that the Loan Programs Office, which saw its authority balloon from $17 billion to more than $400 billion under the Inflation Reduction Act and other legislation, was under pressure to rapidly distribute funds before key deadlines expired. The report highlighted “significant risks” to taxpayers from rushed decision-making and insufficient vetting, particularly given the volume and complexity of applications.

In two cases, the inspector general said DOE had already canceled nearly $400 million in grants awarded to entities with suspected ties to foreign adversaries. The watchdog urged the department to expand its applicant vetting capabilities and avoid what it described as a “pay and chase” model, where funds are disbursed before due diligence is complete.

President Donald Trump has issued multiple executive orders aimed at boosting fossil fuel production and limiting public funding for climate initiatives or ones involving DEI mandates. The administration has also directed federal agencies to review all discretionary grants issued under the Biden administration, with a focus on clawing back funds where possible.

In the case of the DOE, Wright said his department has already requested further documentation from 179 award recipients whose combined funding totals more than $15 billion. These reviews are ongoing and could result in further cancellations.