US: Department Of Energy Cancels Another $7.6 Billion In Energy Project Funding

The U.S. Department of Energy has canceled $7.6 billion in funding for previously approved energy projects on the grounds that they would not produce any palpable benefits for Americans.

The canceled projects are 223 in total, approved by various agencies from the Department of Energy during the previous administration. Per this one, however, “these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars.”

“On day one, the Energy Department began the critical task of reviewing billions of dollars in financial awards, many rushed through in the final months of the Biden administration with inadequate documentation by any reasonable business standard,” Energy Secretary Chris Wright said.

The Department of Energy reported that 26% of all the projects canceled were awarded between Election Day, in November 2024, and Inauguration Day, in January this year.

“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy. Today’s cancellations deliver on that commitment. Rest assured, the Energy Department will continue reviewing awards to ensure that every dollar works for the American people,” Wright added.

This is not the first project cancellation since the new administration took over. Earlier this year, the DoE canceled another 24 energy projects worth over $3.7 billion in government funding. The list, by the way, included a project proposed by Exxon for the production of low-carbon hydrogen at a petrochemicals facility.

Meanwhile, the government shutdown that began yesterday has paused approvals for new wind and solar projects, although oil and gas leases are still on schedule, according to the Bureau of Ocean Energy Management. The agency said it would use carryover funds to maintain work on “priority conventional energy projects,” including offshore drilling in the Gulf of Mexico and Alaska, even as more than 70% of its staff are furloughed.

Source: Oilprice.com