Reuters Sustainable Finance reports that the U.S. Department of Energy is considering cuts to billions of dollars in funding for energy storage and carbon capture demonstration projects.

According to the report, projects that may lose funding include more than “two dozen funded by the DOE’s Office of Clean Energy Demonstrations”. Amongst those are four carbon capture pilot projects that were awarded a total of $309 million in 2024, and three later-stage demonstration projects in California, Texas and North Dakota. These last three received $890 million for integrated carbon capture, transport, and storage technologies.

The report quotes Jessie Stolark, executive director of the Carbon Capture Coalition trade group, who said, “All of our members are making the case that these are critically important projects so to pull back at this moment in time is catastrophic.”

The report explains that since President Donald Trump took office, Washington has been slashing funding for clean energy in favour of fossil fuel production as part of its “energy dominance” agenda. As a result, Energy Secretary Chris Wright has been reviewing lists of projects funded through the 2022 Inflation Reduction Act and 2021 Infrastructure Investment and Jobs Act to weigh which of the congressionally-appropriated projects should cease receiving federal funding.

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