DOE Axes $7.56 Billion in Clean Energy Funds Amid Shutdown Brawl

Researched by Industrial Info Resources (Sugar Land, Texas)--As the U.S. federal government navigates its way through a shutdown that started October 1, President Donald Trump's administration is firing a volley at renewable-based energy development. The U.S. Department of Energy (DOE) announced Thursday it had slashed 321 financial awards, totaling $7.56 billion in value, aimed at clean energy projects. The move deepened a partisan divide over federal spending that is unlikely to be resolved in the coming days.

Although the DOE did not specify exactly which projects would see funding cuts, California Governor Gavin Newsom said in a press release that the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) program was among those affected. The program would have received up to $1.2 billion in federal funds to support projects such as the Cadiz Ranch Green Hydrogen project in California's Mojave Desert, which was designed to produce 50,000 kilograms per day of "green" hydrogen. The clean-energy fuel is produced via renewable energy, as opposed to the more common use of natural gas.

Another hydrogen program set to lose federal funding, according to Bloomberg, is the Pacific Northwest Hydrogen Hub, which included green hydrogen production and liquefaction plants in Ferndale, Washington, with other components to be developed in neighboring states. The full project was set to receive up to $1 billion in federal taxpayer funding, with matching funds from private industry, truck makers, transit and seaport partners over the next eight to 10 years, according to the Washington State Standard.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can learn more about the endangered developments in detailed reports on the Cadiz Ranch and Ferndale production and liquefaction projects.

Energy Secretary Chris Wright defended the cuts, saying the DOE reviewed "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." He noted that more than 25% of the projects were awarded between Election Day and Inauguration Day: "Those awards alone were valued at over $3.1 billion."

Newsom countered Wright in his press release, decrying the loss of support for ARCHES: "This cancellation forgoes an agreement that garnered over $10 billion in primarily private-sector cost share, threatens over 200,000 new, family-sustaining jobs and undermines a program slated to save nearly $3 billion in health costs per year, improving the health of Americans that have suffered from some of the worst air quality in the nation."

Green Cuts Have Blue States Seeing Red
Democrats were quick to point out the cuts announced Thursday entirely were within 16 states that voted for former Vice President Kamala Harris in the 2024 U.S. Presidential election. Democrats on the House Appropriations Committee released a list of would-be recipients and how much federal funding each lost, organized by the names of House representatives for each House district affected.

The cuts also put Republican legislators from Democrat-leaning states in an awkward position. Four California House Republicans--Vince Fong, David Valadao, Jay Obernolte and Young Kim--previously had signed a letter urging the DOE not to cancel funding for the ARCHES program, according to Politico.

Other developers losing federal backing include Plug Power Incorporated (Latham, New York), which is pursuing clean-energy projects in New York and Massachusetts that were set to receive funds. It is not yet known how the cuts might affect Plug Power's $600 million green hydrogen plant in Alabama, New York, which is designed to produce up to 80 metric tons per day upon completion. The project started construction toward the end of 2021 and is nearing completion; subscribers can learn more from a detailed project report and plant profile.

Another company set to lose funds is Pajarito Powder LLC (Albuquerque, New Mexico), which specializes in catalysts for electrolyzers and fuel cells. Pajarito also pulled in support earlier this year from Hyundai Motor Company (Seoul, South Korea), Kia Corporation (Seoul) and Ecovyst Catalyst Technologies Incorporated (Wayne, Pennsylvania), the latter of which led with a $4.5 million commitment, according to Pajarito.

It is unclear how the $18.45 million funding cut to Pajarito will affect the company's $30 million expansion of its fuel cell catalyst plant in Albuquerque, New Mexico, which started construction toward the beginning of 2025 and is set to wrap up toward the end of the year. Subscribers can learn more from a detailed project report and plant profile.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).