U.S. carbon removal industry in turmoil as federal support remains uncertain

The carbon removal industry, once backed by both parties, is facing uncertainty about continued funding under President Trump’s administration. Key officials at the Department of Energy have left, a $35 million removals competition deadline passed without an update, and a company expecting funds has canceled a project and started laying off employees, Trellis reports.

These changes impact two initiatives that were part of bipartisan efforts to boost carbon removal. The Regional Direct Air Capture Hubs program, awarded contracts worth over $1 billion last year, is now in question. Reports suggest the DOE may scrap the program, leading to concerns about funding for companies like Heirloom, which captures carbon dioxide but has faced cancellations and staff departures due to funding uncertainties.

Another affected initiative is a $35 million purchasing prize for carbon removal companies, with winners set to be announced soon. The future of government support for the carbon removal industry, crucial for meeting climate goals, remains uncertain amid potential cuts and changes in funding priorities.