Recent DOE cancellations hit hydrogen and air capture hubs and raise serious questions about the future of clean energy infrastructure.

Recent DOE cancellations hit hydrogen and air capture hubs, raising new doubts about the trajectory of U.S. clean energy infrastructure. In this report, we analyze the specific DOE funding cuts or cancellations, their impact on planned hydrogen hub development, and how they ripple across carbon capture / air capture initiatives. We also assess what these disruptions mean for private investment, technology deployment timelines, and climate policy alignment.

Scroll down for detailed breakdowns of affected projects, reactions from industry stakeholders, and scenarios for future viability of hydrogen and air capture hubs in a shifting funding landscape.

The Department of Energy is canceling a sweeping set of more than 300 grants for clean energy projects approved under the Biden administration, according to a list of the projects circulating in Washington policy circles.

DOE announced the cancellations of more than $7.5 billion in federal support late Wednesday, following a vague announcement on the cuts earlier in the day from Office of Management and Budget Director Russ Vought. The Trump administration has not released an official list of the cancellations.

According to a spreadsheet shared among lobbyists and DOE officials that was viewed by POLITICO’s E&E News, the cancellations include two major hydrogen hub projects led by the Office of Clean Energy Demonstrations, nearly half of the direct air capture hub grants, and a sprawling spread of smaller projects administered by the Office of Energy Efficiency and Renewable Energy and the Grid Deployment Office.

Projects that fell under the Office of Manufacturing and Energy Supply Chains, Office of Fossil Energy, and the Advanced Research Projects Agency-Energy program are also included.

The list does not include award figures or project details for the cancellations, although E&E News was able to tally the impact of some cuts by using project numbers and other details included in the spreadsheet. DOE did not respond for comment. Several award recipients on the list, including the Colorado Energy Office, said they have not yet received notices about terminated funding.

Under Biden, DOE finalized grants for a laundry list of clean energy and electricity grid projects, like the Grid Resilience and Innovation Partnerships Program.

GE Vernova, a company that manufactures grid equipment like turbines, boilers and battery parts, had 11 projects canceled, the list said. The company did not respond for comment.

The cancellations, which hit local and state governments and universities along with companies, come as the Trump administration is blitzing to expand the electricity grid in the U.S. to accommodate eye-popping new demand projections driven by artificial intelligence projects.

Democrats said the cuts will fuel rising utility bills across the country. Electricity prices have spiked more than 6 percent nationwide since last year.

Sen. Patty Murray (D-Wash.) said the cancellations are a “blatant attempt to punish the political opposition” amid a government shutdown in Washington.

“Communities across the country, including some in New Mexico, are being swept up in the Trump administration’s clawback of federal funding from the states,” said Michael Coleman, communications director for New Mexico Gov. Michelle Lujan Grisham (D), in a statement Thursday.

“We can have honest debates about the merits of this funding, but most Americans don’t want their government canceling programs that benefit people of all political persuasions simply because a state is red or blue on the electoral map,” Coleman continued.

Only a handful of the nixed projects are in Republican states, including Tennessee, Florida and Iowa.

It’s the second major round of clean energy project cancellations in the Trump administration. In May, DOE canceled two dozen projects, prompting blowback from Democrats.

“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy. These cancellations deliver on that commitment,” Energy Secretary Chris Wright wrote on the social media site X on Thursday.

Hydrogen and air capture hubs

The wave of cancellations hit at least 10 of 21 megaprojects intended to suck carbon dioxide from the sky. Most of the more than $47.3 million in canceled direct air capture hubs were intended for Democratic-led states.

The Energy Department has so far maintained support for DAC hubs under development in Alaska, Kentucky, Louisiana and North Dakota as well as carbon removal projects pursued by companies close to the administration like Chevron, Shell and Fervo Energy. The oil industry was a major supporter of President Donald Trump’s campaign and Wright was on Fervo’s board before joining the administration.

Chevron and Shell didn’t immediately respond to questions. Fervo declined to comment.

“Pulling back promised funding jeopardizes jobs and local investment while weakening American competitiveness,” said Ben Rubin, executive director of the Carbon Business Council, a coalition of carbon management companies, in an email. “Terminating these awards would cede leadership to other countries that are moving quickly to capture the economic benefits of carbon management.”

Absent on the list are the two DAC hubs that are the closest to breaking ground: Occidental Petroleum’s South Texas hub and Battelle’s Project Cypress, which would be built in the congressional district of House Speaker Mike Johnson (R-La.).

The current list also includes more than $2 billion for two West Coast hydrogen hubs funded by the 2021 bipartisan infrastructure law but not other hubs. In 2023, DOE selected seven regional hubs around the country backed by $7 billion from the law.

The affected initiatives, ARCHES in California and the Pacific Northwest hydrogen hub, were planning to demonstrate “green” hydrogen, which relies on renewable power to produce clean fuel. Both hubs inked financial deals with the Biden administration last year.

In a statement, the Pacific Northwest Hydrogen Hub said its commitment to advancing hydrogen in the region is “unwavering.”

The hub said it will remain focused on building “momentum from the last year, including supporting additional investment, deepening partnerships with states, and promoting the delivery of innovation and infrastructure needed to make hydrogen a cornerstone of America’s energy economy.”

A person familiar with the hub said Republican and Democratic lawmakers in Congress are discussing the possibility of refunding some of the terminated awards.

Two canceled awards from DOE’s renewable office affect green hydrogen giant Plug Power, according to the circulating list. The company did not immediately respond to request for comment.

In a statement Wednesday evening, Angelina Galiteva, the CEO of the California hydrogen hub, said “the ARCHES Ecosystem and Marketplace will continue to advance in collaboration with state leaders and private sector innovators — building on our strong foundation to create a reliable, future-focused domestic hydrogen network for California and beyond.”

“In Trump’s America, energy policy is set by the highest bidder, economics and common sense be damned,” California Gov. Gavin Newsom (D) said in a statement. “We’ll continue to pursue an all-of-the above clean energy strategy that powers our future and cleans the air, no matter what DC tries to dictate.”

Companies pursuing carbon capture projects are also featured on the list.

On social media Thursday, Trump said he’s meeting with OMB’s Vought today to determine which “Democrat Agencies” should see further cuts, an apparent reference to the ongoing shutdown.

White House press secretary Karoline Leavitt told reporters Thursday that “thousands” of federal jobs could be cut, adding “we’re going to look at agencies that don’t align with the administration’s values that we feel are a waste of the taxpayer dollar.”

Reporters Jason Plautz and Carlos Anchondo contributed.