DOE cancels $3.7 billion in industrial decarbonization funds

TRELLIS BRIEFING JUNE 3 2025

The U.S. Department of Energy plans to cut $3.7 billion in Office of Clean Energy Demonstrations awards, a move that impacts 24 procurement contracts and carbon capture projects planned by companies including Amazon, Diageo, ExxonMobil, Kohler, Kraft Heinz and Microsoft.

The canceled projects were targeted by the Trump administration for financial review under an executive order. The DoE is examining close to 180 clean-energy grants and awards worth approximately $15 billion.

A blow to carbon capture

The cancellations come at a time when carbon capture projects are accelerating.

Several big carbon-capture projects are among those affected, including ExxonMobil’s plan to build a facility that would capture up to 2 million metric tons of carbon dioxide annually from Calpine’s natural gas plant near Houston. Calpine and ExxonMobil were expecting a combined $602 million.

Low-carbon cement

Two low-carbon cement startups are among those that will lose funding.

• Sublime Systems, which signed a deal with Microsoft in late May, was expecting $87 million.

• Brimstone Energy, which is closely allied with Amazon, was supposed to receive $189 million.

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