June 5, 2025 12:47

U.S. Secretary of Energy Chris Wright has announced the cancellation of 24 grants previously awarded by the Office of Clean Energy Demonstrations (OCED), totaling more than $3.7 billion.

The cuts affect several projects tied to circular economy goals and the decarbonization of the American chemical industry.

According to Wright, the initiatives "failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars".

Among the defunded initiatives is a $375 million PET chemical recycling plant planned for Longview, Texas. Announced two years ago by Eastman, the project aimed to use methanolysis to break down low-grade polyester-based post-consumer waste into its molecular building blocks, suitable for producing new plastics or fibers with virgin-like quality. The facility was designed to process up to 110,000 metric tons of hard-to-recycle plastic waste annually and create more than 200 permanent jobs.

Another key project affected by the funding rollback is ExxonMobil’s low-carbon hydrogen production at its Baytown, Texas, complex. The hydrogen was intended to power specialized burners for steam-cracking furnaces—an innovation tested successfully on-site. Trials confirmed the process could produce ethylene and other olefins identical in quality to those made using conventional fossil fuels while cutting direct CO2 emissions by 90%.

“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, 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,” said Secretary Wright. “Today, we are acting in the best interest of the American people by canceling these 24 awards.”

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