ExxonMobil has lost a $331 million contract after the U.S. Department of Energy canceled $3.7 billion in clean energy projects. The department cited lack of economic viability, failure to meet national energy needs, and poor return on taxpayer investment as reasons for the cancellations. Sixteen of the 24 scrapped projects were approved during the Biden administration’s final weeks. ExxonMobil’s canceled project involved using hydrogen instead of natural gas at its Baytown, Texas plant.
The announcement follows the Energy Department’s recent move to audit over $15 billion in Biden-era clean energy grants. Under a new policy, grant recipients must promptly provide information or risk losing funding. It also comes amid an internal proposal to shut down the $27 billion clean energy office, which would end funding for hydrogen hubs, carbon capture, battery storage, and a $1.2 billion direct air capture project by an Occidental Petroleum subsidiary.
Canceled projects also include $375 million to Eastman Chemical for a recycling project in Texas, and two $270 million carbon capture projects by Calpine subsidiaries in Texas and California. Energy Secretary Chris Wright stated the cancellations reflect the Trump administration’s effort to ensure taxpayer funds support projects with strong returns, energy reliability, and national security benefits.
