A recent list includes a “latest status” column indicating “terminate” next to approximately $50 million in awards for various projects, associated with an initial funding round from the Department of Energy (DOE). These projects were originally part of a broader funding initiative announced in 2023, which could have provided $500 million or more as they progressed.
Questions remain regarding whether the termination of these initial grants would also cancel any potential subsequent funding. Erin Burns, executive director of Carbon180, a nonprofit focused on carbon dioxide removal, noted that the implications of the terminations are uncertain. According to Burns, this could mean nothing, a potential renegotiation of award terms, or complete withdrawal of funding. She emphasized that such uncertainty could negatively impact these projects.
The DOE clarified that no final decisions regarding the terminations have been made. Ben Dietderich, the department’s press secretary, stated in an email that it would be incorrect to suggest that any projects had been definitively terminated, and he emphasized that the DOE is conducting thorough reviews of financial awards from the previous administration.
Last week, the DOE announced the termination of approximately $7.5 billion in grants for over 200 projects, citing reasons such as inadequate advancement of national energy needs and lack of economic viability. Companies such as Battelle and 1PointFive did not respond to inquiries about this development.
Christoph Gebald, co-CEO of Climeworks, remarked that the company is prepared for various outcomes, stating the growing need for direct-air-capture technology as climate goals become increasingly urgent. Heirloom also indicated ongoing productive engagement with the DOE pending a decision.
The rising impacts of climate change have catalyzed growth in the direct-air-capture sector, which aims to significantly reduce carbon dioxide levels. Climate models suggest that billions of tons of CO2 removal may be necessary by mid-century to meet global temperature targets, and direct air capture is viewed as a critical, albeit costly, solution to this challenge.
Source: https://www.technologyreview.com/2025/10/07/1125207/the-us-is-set-to-cancel-funding-for-two-major-direct-air-capture-plants/