DOE Terminates $7.5B in Energy Awards, Including ARCHES Hydrogen Hub
The Department of Energy has terminated 321 financial awards worth approximately $7.56 billion, including the ARCHES hydrogen hub in California. The cancellations, announced by White House budget chief Russ Vought, have sparked outrage from Democrats who argue they are illegal and will raise electricity costs.
The ARCHES project, expected to receive up to $2.2 billion, was one of the first to secure a financial deal with the Biden administration last year. Alongside the Pacific Northwest hub, it was among the initial recipients. However, the project's activities have been directed to cease after October 1, with outstanding obligations to be canceled.
The terminated awards span various offices, including grid, renewable, fossil, and clean energy demonstration. The cancellations target projects in 16 states that backed former President Joe Biden during the 2020 election. Around a quarter of the awards were distributed between President Trump's reelection and inauguration day. Award recipients have been given 30 days to appeal the termination decision.
The Department of Energy's move to terminate these projects has significant implications for the U.S. energy landscape. It remains to be seen how these cancellations will impact the development of clean energy initiatives and the broader economy. The public awaits further details on the remaining hydrogen hubs expected under the 2021 Infrastructure Investment and Jobs Act.
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