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Key Takeaways
- DOE is terminating 223 projects, citing $7.5 billion in savings.
- California’s ARCHES hydrogen hub is among the cancelled efforts.
- Lawmakers say the move could cost jobs and weaken clean energy momentum.
- DOE argues the decision ensures taxpayer funds go to viable projects.
The U.S. Department of Energy (DOE) has terminated 223 clean energy projects, a move it says will save taxpayers more than $7.5 billion. The decision includes cancellation of funding for California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), a hub project selected in 2023 as part of a national hydrogen development initiative.
DOE officials said the cancellations follow a review of projects deemed unviable or misaligned with the department’s current priorities. According to the agency, halting these efforts will allow resources to be redirected toward initiatives with stronger potential to deliver cost-effective results for American consumers.
The decision quickly drew criticism from California lawmakers. In a letter sent this week, U.S. Senator Alex Padilla and Representative Adam Schiff called the cancellation of ARCHES “shortsighted,” warning it could undermine economic opportunities and clean energy development. ARCHES had been projected to support up to 220,000 jobs across research, manufacturing, and operations, with projects spanning ports, inland regions, and tribal lands.
Backers of ARCHES argue that the hub is a strategic investment in U.S. energy competitiveness and hydrogen innovation. DOE, meanwhile, maintains that ending projects that no longer align with program goals ensures efficient use of federal resources.
