Biden-era green energy projects scrapped by Trump, including $332M Exxon award

The U.S. Department of Energy announced on Friday that it is canceling funding for 24 clean energy demonstration projects initiated under President Joe Biden, totaling more than $3.7 billion in federal support. Among the rescinded awards is a $332 million grant for a hydrogen-based emissions reduction initiative at ExxonMobil’s (NYSE:XOM) Baytown, Texas, refinery.

“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars,” Chris Wright, secretary of energy, said in a statement, “the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment.”

These projects were originally part of Biden’s push to accelerate carbon capture, hydrogen energy, and other climate-forward technologies. However, the current administration, led by President Donald Trump, is reassessing federally backed clean energy and tech initiatives as it pivots toward expanding fossil fuel production and reversing key climate policies from the previous administration.

In addition to the ExxonMobil (NYSE:XOM) award, the Energy Department revoked $500 million intended for Heidelberg Materials in Louisiana and $375 million allocated to Eastman Chemical (NYSE:EMN) in Longview, Texas. The Baytown project had aimed to reduce emissions by replacing natural gas with hydrogen in ethylene production, a key input for plastics and textiles.

According to the Energy Department, nearly 70% of the rescinded contracts were signed between the November 2024 election and Biden’s final day in office on January 20, 2025.

The companies affected haven’t yet issued public responses.

Carbon capture and storage technologies are designed to mitigate climate change by trapping carbon dioxide either directly from the atmosphere or from industrial emissions. The captured gas is then stored underground or used in enhanced oil recovery, a method of extracting additional crude from aging fields.