Investing.com -- The Energy Department is considering substantial reductions that could potentially stop almost $10 billion in federal funding for clean-energy initiatives, according to a report from the Wall Street Journal. These cuts could impact some of its most notable collaborations with Exxon Mobil (NYSE: XOM ) and Occidental Petroleum (NYSE: OXY ).
The proposed reductions could disrupt government contracts with energy firms engaged in hydrogen, carbon capture, long-duration energy storage, and other technologies, as per department memos. It is anticipated that thousands of department jobs will be terminated due to these cuts.
These cuts are part of a larger initiative by President Trump’s Department of Government Efficiency (DOGE) to reduce the size and spending of the government.
Partnerships that could lose DOE funding include those with Exxon for using hydrogen as fuel at a large ethylene plant, NextEra Energy (NYSE: NEE ) for long-duration storage, and Occidental Petroleum for carbon capture in South Texas.
The department is also contemplating withdrawing funding from four regional hydrogen hubs, primarily in Democratic-leaning regions, while continuing to support three hydrogen hubs in largely Republican areas.
More than 250 projects related to EV charging, wave energy, battery recycling, solar, wind, and other technologies are also at risk due to these proposed cuts.
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