Department of Energy Cancels $3.7 Billion in Clean Energy Grants, Including Two in Alabama
WASHINGTON — The U.S. Department of Energy announced the termination of 24 clean energy grants on Friday, totaling over $3.7 billion. Among the canceled projects were two significant grants awarded to companies in Alabama: a $75 million grant for AMERICAN Cast Iron Pipe Company in Birmingham and a $75.5 million grant for United States Pipe and Foundry Company in Bessemer.
Energy Secretary Chris Wright cited a lack of thorough financial review by the previous administration as the reason for the cancellations. “We are utilizing taxpayer dollars to strengthen national security and advance projects that offer the highest return on investment,” he stated.
The canceled projects primarily aimed to fund carbon capture and sequestration initiatives designed to reduce carbon dioxide emissions. AMERICAN’s grant was intended for its Next Generation Melt Project, aimed at transitioning to electric-powered furnaces that would significantly lower CO2e emissions. Company representatives expressed disappointment, asserting their commitment to pursue the project’s completion, which promises to enhance production capacity and create high-paying jobs.
Similarly, U.S. Pipe’s funding was aimed at substituting its existing coke-fired furnace with electric induction melting technology. This change would reportedly cut carbon intensity by 73% and eliminate the reliance on natural gas and coal-derived coke. The project was projected to create approximately 220 new jobs and upskill existing employees, although the company was unavailable for comment following the announcement.
The Department of Energy underscored that the terminated projects failed to meet essential "economic, national security, or energy security standards" necessary for justifying the investment.
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