In a dramatic policy shift, the Department of Energy (DOE) announced it will claw back $3.7 billion in clean energy and manufacturing grants awarded during the Biden administration a move that is sending shockwaves through the industry.
The reversal affects 24 projects, including high-profile efforts by major corporations like Exxon Mobil and Kraft Heinz, as well as promising startups like Skyven Technologies, Sublime Systems, and Brimstone Energy.
Energy Secretary Chris Wright, appointed by President Trump, said the decision was part of the administration’s “due diligence” and cited a May 15 memorandum that suggests the DOE may use its audit authority to cancel previously approved awards. However, the department has yet to give clear public reasoning behind each individual termination.
Among the canceled grants are:
- $375M for Eastman Chemical’s plastic recycling plant in Longview
- $331.9M for Exxon Mobil’s Baytown Olefins chemical plant
- $270M each for Calpine’s Baytown and Sutter natural gas power plants
- $189M for Brimstone Energy’s low-carbon cement and alumina facility
- $86.9M for Sublime Systems’ sustainable cement initiative
- $75M for American Cast Iron Pipe Company’s metal manufacturing site
- $15.3M for Skyven’s industrial heat pump technology
Startups caught in the crossfire are now scrambling to respond.
Sublime Systems said it was “surprised and disappointed” by the sudden cancellation. “We’ve made real progress scaling our U.S.-developed technology, securing major partnerships, and building a strong customer base,” spokesperson Rob Kreis told TechCrunch. The company is currently exploring its options to keep moving forward.
Brimstone Energy expressed hope the decision might be reversed, citing their strong fit with President Trump’s own priorities.
“Our Rock Refinery is the only economically viable way to produce alumina—an essential critical mineral—from U.S.-mined rock,” said Brimstone’s Liza Darwin. “As the first U.S. alumina plant in a generation, this project would strengthen America’s mineral supply chain and create thousands of jobs.”
The sudden policy U-turn raises concerns over how federal support for clean tech innovation might be reshaped under the Trump administration. For many of these projects, the DOE grants were central to scaling technologies that promise to cut industrial emissions, strengthen U.S. manufacturing, and reduce dependency on foreign supply chains.
While some companies are preparing appeals, others worry that the decision signals a broader retreat from clean energy and climate-forward investments at the federal level.
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