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Climate

DOE Cancels Nearly $4 Billion in Infrastructure Grants

On DOE grants, OPEC, and construction costs

DOE Cancels Nearly $4 Billion in Infrastructure Grants
Heatmap Illustration/Getty Images

Current conditions: Air quality alerts remain in effect for the entire state of Minnesota through Monday evening due to wildfire smoke from ManitobaAn enormous dust storm is blowing off the Sahara Desert and could reach the Gulf Coast this week Northern lights were visible on camera as far south as Florida on Sunday. You’ll have another chance to see them tonight.

THE TOP FIVE

1. Trump admin cancels nearly $4 billion in DOE grants

In case you missed it, the Department of Energy canceled nearly $4 billion in funds for industrial and manufacturing projects on Friday. Many of the projects had been planned in rural or conservative areas, including $500 million awarded to ExxonMobil and Calpine’s carbon capture project in Baytown, Texas. A DOE spokesperson said in the announcement that the 24 canceled grants were for projects that “were not economically viable and would not generate a positive return on investment of taxpayer dollars.”

None of the awardees responded to my colleague Emily Pontecorvo’s inquiries about whether they plan to pursue legal challenges, but she did note in her analysis one critic of the Trump administration’s move who described it as “dismantling” the clean energy economy and “giving away the future of manufacturing.” Emily also observed a notable absence from the DOE’s list of canceled grants: steelmaking company Cleveland Cliffs, which she reported last month was in the process of renegotiating its award under the Industrial Demonstration Program.

2. OPEC members to up oil production for third consecutive month

This weekend, the eight members of OPEC+ announced that they would continue to increase oil production in July, the third straight month in a row. The group’s target is an additional 411,000 barrels a day, or more than three times what it had previously planned, AFP reports, though analysts expect the actual production amount will be less.

The increases have followed a period of low production by Saudi Arabia, though The New York Times notes that the Saudis and other OPEC+ members like the United Arab Emirates “had chafed because some members, including Iraq and Kazakhstan, had exceeded their ceilings. The Saudis are now sending a message that they will not restrain output if others don’t.” Though the prices for Brent crude have fallen this year by around 16%, the Times adds that the Saudis, “who have low costs, can still make money at those levels” even as shale drillers in the U.S. have slowed. OPEC produces approximately 40% of the global crude oil supply, with oil and gas operations accounting for around 15% of total energy-related emissions worldwide.

3. The average energy project costs 40% more for construction, runs 2 years longer than expected: study

The average energy infrastructure project costs 40% more than expected for construction and takes nearly two years longer to complete than initially planned, according to a new study of 662 such projects in 83 countries by the Boston University Institute for Global Sustainability, published in the journal Energy Research & Social Science. Nuclear power plants were the worst offenders, with construction costing 102.5% more on average, or $1.56 billion more than expected. Hydrogen, carbon capture and storage, and thermal power plants that rely on natural gas were also among higher-risk infrastructure projects, the study found. “I’m particularly struck by our findings on the diseconomies of scale, with projects exceeding 1,561 megawatts in capacity demonstrating significantly higher risk of cost escalation,” Hanee Ryu, one of the researchers, said. “This suggests that we may need to reconsider our approach to large-scale energy infrastructure planning, especially as we commit trillions to global decarbonization efforts.”

Solar energy and transmission projects, on the other hand, had the lowest investment risks for construction and time costs, and are often completed ahead of schedule and for less than expected, the research found. Wind, similarly, “performed favorably in the financial risk assessment.” You can read the full report here.

4. IATA warns airline decarbonization is ‘in peril’

Airline industry decarbonization goals are “in peril,” according to comments made by the International Air Transport Association’s senior vice president for sustainability, Marie Owens Thomsen, at a trade conference in India on Sunday. While several major aviation groups have set 2050 as the goal for achieving net-zero carbon emissions for air travel, Owens Thomsen specifically cited the Trump administration’s policies as “obviously a setback,” Barron’s reports.

Programs to support the development of sustainable aviation fuels are also in jeopardy. The European Union requires carriers to include 2% lower-emission biofuel in their fuel mix starting this year, but Owens Thomsen said the cheap cost of oil is still diminishing the “sense of urgency that people have.” She expected a $4.7 trillion investment in SAF would be needed to meet the 2050 emission goals. “It is entirely achievable,” she went on, calling the money involved “very comparable to the money that was involved in creating the previous new energy markets, notably, obviously, wind and solar.”

5. GM kicks Tesla out of top EV spot in Canada

Tesla is no longer the best-selling electric vehicle in Canada. Late last week, GM announced it has officially taken the crown as the “#1 EV seller” in the country, following a surge in sales of 252% in the first three months of the year, led by the Chevy Equinox EV.

Though Tesla’s dethroning is also indicative of the brand’s diminished reputation abroad — Electrek notes Tesla registered just 542 cars in Quebec, the country’s top EV market, in the first quarter of 2025 — the numbers also reflect GM’s successes, with even sales of its GMC Hummer EV Pickup up 232%. Combined Q1 EV sales in Canada were nevertheless still down significantly, to 5,750 from 15,000 EV sales in Q4, Electrek adds, a dip attributable to Quebec’s pause on federal EV incentives between February and April.

THE KICKER

NOAA

Happy second day of meteorological summer! It could be a toasty one: The National Oceanic and Atmospheric Administration’s Climate Prediction Center expects hotter-than-average temperatures across much of the Southwest and Northeast this year.

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