Ginny Roscamp, Senior Press Secretary, Federal Communications, Sierra Club, ginny.roscamp@sierraclub.org
WASHINGTON, DC — Following a pattern of cutting federal programs led by Elon Musk’s Department of Government Efficiency (DOGE), the Department of Energy (DOE) today announced it was canceling $3.7 billion in funding for 24 clean energy projects through its Office of Clean Energy Demonstrations (OCED).
Many of the canceled projects focused on carbon capture or low-carbon cement. 17 of the canceled projects are from the Industrial Demonstrations Program, which aims to support the decarbonization of heavy industries like steel, cement, and aluminum. The announcement comes less than a month after Secretary of Energy Chris Wright testified before Congress that no OCED cut lists existed.
In response to the news, the Sierra Club’s Industrial Transformation campaign issued the following statements:
“DOGE and the Trump Administration have just killed dozens of major investments in American competitiveness, good jobs, and cleaner air to support Trump’s tax cuts and line the pockets of billionaires. These projects were not just pro-climate; they were pro-jobs, pro-innovation, and pro-public health. American workers, fenceline communities, and forward-thinking companies have had the rug pulled out from under them,” said Iliana Paul, deputy director for the Industrial Transformation campaign at the Sierra Club.
“As part of the agreement for receiving the grants, companies were all required to engage with the community and address some of the biggest concerns that local residents had with the project. These included pollution and public safety concerns, alongside hiring local workers and investing in programs that would benefit local residents. By pulling the plug from 24 projects, the Trump administration and DOGE are taking away efforts that would support the wellbeing and economic vitality of manufacturing communities. This is a betrayal of public trust,” said Yong Kwon, senior advisor for the Industrial Transformation campaign at the Sierra Club.
BACKGROUND
According to Bloomberg, the cuts include funding to Heidelberg Materials and Sublime Systems for pilot projects to manufacture low-carbon cement. Earlier this week, Sublime announced it had signed an agreement with Microsoft to buy more than 600,000 tons of its low-carbon cement — which calls into question the Trump administration’s argument that the canceled projects were not “economically viable.”
Interestingly, the cut list did not include funding to Cleveland Cliffs for a project to transition its coal-reliant steelmaking processes to hydrogen — despite the fact that the Cleveland Cliffs CEO said in May that it would use the money to instead reline the blast furnace at its Middletown, Ohio facility to extend their lifespan and continue their reliance on coal — which is clearly outside of the original scope of OCED funding for clean energy projects.
Companies receiving awards under the Industrial Demonstrations Program were required to identify and make plans to address community concerns through Community Benefits Plans. These plans included workforce development investments, air pollution monitoring, local hire requirements, and more.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.