The U.S. Department of Energy canceled 24 grants last week, many of them going to projects to reduce greenhouse gas emissions in manufacturing. That includes two projects in Indiana — one at Kraft Heinz in Noble County and another at cement-maker Heidelberg Materials in Lawrence County.
The DOE said the projects “failed to advance the energy needs of the American people,” were too expensive and wouldn’t earn a “positive return on investment.” The grants totaled $3.7 billion.
Advocates for decarbonizing heavy industry disagree. They said it would make U.S. industries competitive with other countries and create jobs.
David Perkins is the senior vice president of sustainability and public affairs for Heidelberg Materials North America — which planned to store its carbon emissions underground with the help of a $500 million federal grant.
Perkins said the cement-maker is still figuring out what this means for its carbon storage project and how the company might appeal the decision.
“The cement sector is a really critical part of our overall economic prosperity. So we're hopeful that we can work with the DOE to help them understand that and how this really does align with that mission of supporting domestic manufacturing," Perkins said.
READ MORE: Making climate-friendly cement is hard. Federal grant to do so in Indiana could be axed
Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 765-275-1120. Your comments and questions in response to our weekly text help us find the answers you need on climate solutions and climate change at ipbs.org/climatequestions.
Ash Lauth is the senior campaign strategist on cement and concrete for Industrious Labs — a nonprofit that advocates to reduce industrial carbon pollution. She said it's not clear if the DOE’s move to cancel the grants is legal.
Lauth said private companies in the Industrial Demonstrations Program signed agreements with the DOE to match funds.
“Cutting these projects violates all of those contracts and that is — in and of itself — legally unsound," she said.
So far, an award for a zero-waste aluminum recycling facility in Wabash County is still in effect.
The DOE did not respond to a request for an interview.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or on Signal at IPBenvironment.01. Follow her on Twitter at @beckythiele.