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2025-04-29

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Reuters reported: The U.S. Department of Energy plans to cut budget for energy storage battery and carbon capture projects.

Reuters reported: The U.S. Department of Energy plans to cut budget for energy storage battery and carbon capture projects.
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The U.S. Department of Energy is considering cutting billions of dollars in funding, primarily targeting emerging energy storage and carbon capture programs, which could have a significant impact on promising decarbonization technologies. Due to traditional investors' cautious attitude towards the risks of these technologies, there is a heavy reliance on government support. The projects being cut include four carbon capture pilot programs and three later-stage demonstration projects. The executive director of the Carbon Capture Coalition pointed out that these programs are extremely important, and the withdrawal of funding would have catastrophic consequences. Additionally, six out of nine projects for long-duration energy storage batteries also face budget reductions.

According to foreign reports, the U.S. Department of Energy is considering cutting billions of dollars in funding originally allocated for demonstrating emerging energy storage and carbon capture projects. If these funds are withdrawn, it will have a significant impact on potentially promising emerging decarbonization technologies. Since most traditional investors consider the risks of such technologies too high to invest, these technologies heavily rely on government support.

Among more than 20 projects funded by the U.S. Department of Energy's "Office of Clean Energy Demonstrations," some have been marked for "cuts." The projects listed for reduction include four carbon capture pilot projects that collectively received $309 million last year, along with three later-stage demonstration projects located in California, Texas, and North Dakota, with a total funding of $890 million, aimed at integrating carbon capture, transportation, and storage technologies.

The executive director of the Carbon Capture Coalition stated in an interview, "All of our members emphasize that these projects are extremely important, and divesting them at this time would be catastrophic." He pointed out that some projects have already begun operating test wells or construction.

Additionally, the list shows that out of nine long-duration energy storage battery projects, six will face funding cuts. The related companies previously received $350 million to develop technologies for extended energy storage times, helping utilities and grid operators effectively integrate renewable energy sources like solar and wind.