Controversy Looms Over U.S. Carbon Capture Funding Cuts

The U.S. Department of Energy may slash funding for carbon capture projects in Texas and Louisiana, impacting President Biden's emissions reduction goals. The projects, which are part of efforts to commercialize carbon removal technology, risk cancellation due to budget reallocations proposed under the Trump administration.

The U.S. Department of Energy is considering significant funding cuts to carbon capture projects in Texas and Louisiana, according to sources closely following the situation. These projects are part of the Biden administration's initiative to reduce greenhouse gas emissions and demonstrate the capability of capturing carbon at a commercial scale.

Currently, the Louisiana Project Cypress and the South Texas DAC Hub are the largest U.S. efforts in this domain, promising to remove over 2 million metric tons of carbon emissions annually. However, they face potential elimination as Congress prioritizes tax cuts, a decision now being reviewed by Energy Secretary Chris Wright.

Amid this uncertainty, Louisiana officials have urged federal intervention to secure the grants, essential for these costly projects. The broader implications of these potential cuts have sparked discussions between corporate sectors and government bodies, highlighting the critical need for innovative carbon technologies.

(With inputs from agencies.)