Trump Administration Cancels $22M Grant to Kraft Heinz in Lowville Amid $3.7B Clean Energy Cuts
Published · 2 min read
The Kraft Heinz plant in Lowville, New York, has lost a $22 million federal grant. This money was intended to help the plant install solar panels, fuel-efficient boilers, and thermal energy storage systems. These upgrades were part of Kraft Heinz’s plan to reach net-zero greenhouse gas emissions by 2050.
The grant was part of a larger $170.9 million award from the U.S. Department of Energy’s Industrial Demonstrations Program, aimed at upgrading ten Kraft Heinz facilities across the country.
Senator Charles Schumer criticized the decision, stating it was an “unjust blow” to Lewis County’s largest employer. He urged Congresswoman Elise Stefanik to join him in opposing the cancellation, emphasizing the negative impact on local jobs and the dairy industry.
Nationwide Cuts: Department of Energy Cancels $3.7 Billion in Clean Energy Projects
On May 30, 2025, the U.S. Department of Energy announced the cancellation of 24 clean energy projects totaling over $3.7 billion. These projects were primarily focused on carbon capture and decarbonization efforts.
Energy Secretary Chris Wright stated that the projects were canceled after a financial review found they were not economically viable and would not provide a positive return on investment for taxpayers.
The canceled projects included:
| Company | Project | Funding Canceled |
| Heidelberg Materials US, Inc. | Carbon Capture Initiative | $500 million |
| Eastman Chemical Company | Plastic Recycling Project | $375 million |
| Exxon Mobil | Clean Hydrogen Project in Baytown, Texas | $332 million |
| Calpine | Carbon Storage Effort | $270 million |
| Orsted | Clean Methanol Project | $99 million |
These projects were part of the Office of Clean Energy Demonstrations, created under the 2021 bipartisan infrastructure law.
Reasons for Cancellation: Financial and Strategic Considerations
The Department of Energy stated that the projects were canceled because they:
- Failed to advance the energy needs of the American people
- Were not economically viable
- Would not generate a positive return on investment of taxpayer dollars
Secretary Wright emphasized the importance of conducting thorough financial reviews to ensure responsible use of taxpayer funds.
Reactions: Criticism from Lawmakers and Industry Leaders
The decision has drawn criticism from various quarters. Rep. Marcy Kaptur, a leading Democrat on the House Appropriations Committee’s energy panel, called the move “shortsighted and malicious.”
Conrad Schneider, a senior director at the Clean Air Task Force, stated that the action “undercuts U.S. competitiveness at a time when there is a growing global market for cleaner industrial products and technologies.”
Jessie Stolark, executive director of the Carbon Capture Coalition, described the cancellations as “a major step backward” for carbon management technologies.
Conclusion: Uncertain Future for Clean Energy Initiatives
The cancellation of these projects, including the $22 million grant to the Kraft Heinz plant in Lowville, signals a significant shift in the federal government’s approach to clean energy. While the administration cites financial prudence, critics argue that these cuts could hinder progress toward reducing greenhouse gas emissions and developing sustainable energy solutions.
The future of other clean energy initiatives remains uncertain as the Department of Energy continues its review of projects funded under the 2021 infrastructure law.
