Coalition Statement on the Third Potential Round of Cancellations of DOE-Funded Carbon Management Projects 

October 8, 2025 | News

The following statement may be attributed to Jessie Stolark, the executive director of the Carbon Capture Coalition. The Carbon Capture Coalition is a nonpartisan collaboration of more than 100 companies, labor unions, and conservation and environmental policy organizations. Coalition members work together to lay the groundwork for the necessary portfolio of federal policies to enable nationwide, commercial-scale deployment of carbon management technologies.  

“There are reports that the U.S. Department of Energy (DOE) is considering a third tranche of cancellations of hundreds of previously selected projects. This is in addition to the announced cancellation of more than $7.5 billion in DOE projects last week, with 55 of those projects being relevant to carbon management.” 

“If true, DOE is poised to cancel yet another set of projects and federal investments ranging from building large-scale DAC and hydrogen hubs, to scaling carbon storage, as well as research and development aimed at novel and cost-effective carbon capture technologies. These cancellations of projects across the nation threaten billions of dollars in private investments pledged in every region of the country, subsequent high-quality American jobs, and our ability to lead the globe in technology innovation. Not only do these cancellations risk the significant economic benefits these projects were poised to provide, but they also undermine robust bipartisan congressional support and action aimed at ensuring America wins the global race in developing and deploying these technologies. 

“Carbon management technologies are key to building a more reliable, affordable, and sustainable American energy system—one that supports existing industries while doubling down on technology innovation. Thanks to robust bipartisan congressional support, which has underscored the importance of public-private partnerships in energy production, the US has attracted significant investments and local economic development potential through various federal carbon management programs. While other nations, such as China, Canada, and members of the EU, reinforce strategic investments in carbon management technologies, actions like this cede ground in a sector where the US has led the world in developing and deploying technologies for decades.  

“Additionally, cancelling projects that were rigorously reviewed and lawfully selected by qualified technical experts sends a bad signal to American businesses and investors. Businesses need certainty and predictability to continue to build in the US—pulling back on these already announced projects erodes confidence in the federal decision-making process. Moreover, it’s increasingly clear that those companies that can provide cleaner materials and energy will come out on top in the 21st-century global marketplace. Simply put, the federal investment in these projects was an investment in our shared energy future and a down payment on the continued growth of our economy.  

“Federal investments in energy infrastructure have proven time and again to generate strong returns. DOE estimates that carbon management projects have an economic multiplier between 2x and 4x, meaning that every dollar invested by the American taxpayer can lead to up to $4 in economic output through additional supply and material orders, job creation, and broader economic benefits to regional economies. The more than 270 publicly announced carbon management projects across the nation have already resulted in more than $77.5 billion in capital expenditures. With DOE canceling these projects, we now face a worst-case scenario in which the American taxpayer and businesses have invested billions without any results, all while driving investment and innovation abroad. 

“We remain committed to continuing to work with our broad, diverse membership and bipartisan federal policymakers to ensure continued support for the deployment of carbon management technologies nationwide.”   

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The Carbon Capture Coalition (the Coalition) is a nonpartisan collaboration of more than 100 companies, labor unions, and conservation and environmental policy organizations. Coalition members work together to lay the groundwork for the necessary portfolio of federal policies to enable nationwide, commercial-scale deployment of carbon management technologies.