DOE Cancels $8 Billion in Energy Projects Across 16 States
The US Department of Energy has cancelled nearly $8 billion worth of energy projects across 16 states, including the ARCHES hydrogen hub in California. The move, announced by White House budget chief Russ Vought, affects 321 financial awards, with roughly a quarter initiated during the Trump administration.
The cancellations, part of a department-wide review led by Energy Secretary Chris Wright, include two hydrogen hubs expected to receive up to $2.2 billion from the federal government. The ARCHES project in California, one of the cancelled awards, is set to cease all activities after October 1.
The terminated awards support a range of projects, including grid, renewable, fossil, and clean energy offices. Affected states include California, Texas, Illinois, and Florida. Award recipients have 30 days to appeal the termination decision.
The ARCHES CEO expressed disappointment, stating the decision ignores critical project benefits. However, the project will continue with support from the state and private sector.
The cancellations, totaling approximately $7.56 billion, aim to realign federal spending with current administration priorities. The terminated projects, despite their diverse energy sources, will now seek alternative funding sources or face closure.
