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Home - Energy - DOE Cancels $8B in Energy Awards, Hitting Blue States and Grid Modernization Projects

Energy

DOE Cancels $8B in Energy Awards, Hitting Blue States and Grid Modernization Projects

The Department of Energy has canceled nearly $8 billion in awards, disproportionately impacting renewable energy projects and blue states.

Emmanuella Madu
Last updated: October 3, 2025 5:48 pm
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Emmanuella Madu
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The Department of Energy (DOE) has cancelled nearly $8 billion in energy awards, a move the Trump administration framed as protecting fossil fuels. But documents obtained by TechCrunch reveal the cancellations were more complex, cutting across renewables, oil and gas, and carbon capture projects.

The DOE has not publicly listed the awards, but TechCrunch reviewed 321 canceled contracts. Among them:

  • Colorado State University lost a $300 million project to reduce methane emissions.
  • The Gas Technology Institute, serving the natural gas industry, saw 12 projects worth $417 million canceled.
  • Carbon capture and removal projects were hit hard, with 10 of 21 projects terminated, worth about $200 million.

Grid modernization also faced steep losses. Minnesota lost a $467 million award to upgrade grid interconnections across seven Midwest states, a project expected to unlock 28 gigawatts of renewable capacity. California lost $630 million for advanced conductor and transmission upgrades, while Oregon lost $250 million for a project connecting the Confederated Tribes of Warm Springs, which would have enabled several renewable projects and brought fiber-optic broadband to the area.

The cancellations disproportionately affected blue states. California lost at least $2.2 billion, while Colorado, Illinois, Massachusetts, Minnesota, and Oregon each lost around $500 million. New York lost $309 million. In contrast, states that voted for Trump mostly lost contracts worth single-digit millions.

Experts point to politics and alignment with the administration’s priorities. “The recipients who have survived in blue states are perhaps more aligned with the administration and participating in industries that are more of a priority for this administration,” said Courtni Holness, managing policy advisor at Carbon180.

Some smaller awards may have been cut regardless due to uncertainty in regional, technological, or economic feasibility. But industry observers warn the broader impact is clear: companies are reconsidering U.S. investments. “You’re going to see more of that, and it’s having an impact on private sector investments,” said Erin Burns, executive director at Carbon180.

Related: DOE Cancels $7.56 Billion in Clean Energy Awards, Hitting Hydrogen and Carbon Capture Projects 

Holness added, “It’s a bigger question about the stability of our Department of Energy and their ability to be a partner to U.S. businesses and have some form of predictability.”

TAGGED:Department of EnergyGrid ModernizationRenewable Energy
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