WASHINGTON — The Department of Energy canceled 24 clean energy grants Friday, including two awarded in Alabama.
Energy Secretary Chris Wright announced Friday that a $75 million grant for AMERICAN Cast Iron Pipe Company in Birmingham and a $75.5 million grant for United States Pipe and Foundry Company in Bessemer were among the terminated awards. The cancelled grants were located in several states, including multiple red states such as Texas, Louisiana and Kentucky.
The projects were primarily focused on funding carbon capture and sequestration processes used to reduce carbon dioxide emissions. The department said the 24 projects totaled more than $3.7 billion. They were awarded through the Office of Clean Energy Demonstrations.
“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,” Wright said in a press release.
The AMERICAN Cast Iron Pipe Company was set to use the funding for its Next Generation Melt Project to upgrade its ductile iron pipe operations to electric-powered furnaces, according to a press release. The grant was awarded in November, according to the Department of Energy. The technology would reduce the facility’s CO2e emissions by 62% and reduce the melting/holding process carbon dioxide emissions by an estimated 95%.
“AMERICAN was disappointed to learn our cooperative agreement with the Department of Energy for our Next Generation Melt Project has been terminated,” the company said in a statement to Alabama Daily News Monday.
“AMERICAN remains committed to moving forward with this project to transition to an all-electric melt system. Once completed, the Next Generation Melt Project and future downstream projects will increase capacity, provide flexibility with production scheduling, and add high-quality, high-paying jobs.”
U.S. Pipe was awarded the funding to replace its coke-fired furnace with electric induction melting furnaces, which would reduce the carbon intensity by an estimated 73% at the iron pipe production facility, according to a press release. The grant was awarded in September.
The conversion would aim to eliminate the need for natural gas and coke, which is derived from coal, in the iron melting process. The project aimed to “improve air quality, reduce the cost of operations, improve manufacturing capacity and safety, and enhance the overall melting process and reliability.”
U.S. Pipe estimated the project would generate about 220 production jobs and upskill 36 employees.
U.S. Pipe could not be reached for comment.
The Department of Energy said the 24 terminated awards did not meet the “economic, national security or energy security standards” to justify the investment.