ALBUQUERQUE, N.M. — President Donald Trump’s Department of Energy has canceled 10 major energy projects across New Mexico, worth more than $135 million.
The president pulled the federal funding Wednesday, halting initiatives that ranging from carbon capture to clean energy manufacturing.
New Mexico was one of 21 predominantly-blue states in the DOE’s cancellation of $7.56 billion in funding already allocated for 223 energy projects.
New Mexico Democratic U.S. Rep. Teresa Leger Fernandez told KOB 4 on Thursday that companies are still on the hook to pay its contractors.
For everyday people, this could lead to higher utility rates.
“They are contractually obligated to the people that they are buying batteries from wires, from poles from and so they’re going to have to pay those contracts,” Leger Fernandez said. “They can’t just say, ‘Sorry.’ The only place that they can raise revenue is by raising rates.”
One of the most significant project losses is on the Navajo Nation.
The Navajo Transitional Energy Company was set to receive $6.6 million for a carbon capture system at the Four Corners Power Plant. The $13.1 million project would have tested full-scale CO2 reduction technology – but is now scrapped.
In northern New Mexico, Kit Carson Electric Cooperative lost $15.4 million for its $29.3 million battery energy storage system aimed at improving grid resiliency.
New Mexico’s largest utility company, PNM’s $72.6 million virtual power plant project saw $35.6 million in federal funding get cut.
The funding cuts particularly hit New Mexico Institute of Mining and Technology hard.
New Mexico Tech’s projects under the DOE’s Fossil Energy Carbon Management office included a $42.7 million carbon storage hub in the San Juan Basin, methane emission mitigation technology, and direct air capture research — all of which lost federal backing.
Clean energy innovators were also affected.
Solar Dynamics lost $3 million for a $35.6 million solar thermal project designed to convert biosolids into fertilizer. Meanwhile, Albuquerque-based Pajarito Powder, LLC, which develops hydrogen fuel and catalyst technologies, saw two projects scrapped
- $10 million for $13.2 million project to produce oxygen evolution reaction catalysts to supply the electrolyzer industry
- $8.5 million for $11 million project to expand catalyst material manufacturing.
“Donald Trump’s decision to cancel 223 energy projects in 21 states was nakedly political, unhinged, and unlawful. And now those cancelled energy projects have become the latest casualty of Trump’s vengeful attack on the American people,” New Mexico Democratic U.S. Sen. Martin Heinrich wrote in a statement on Thursday.
Rep. Leger Fernandez echoed Heinrich.
“They have a signed agreement. A signed agreement,” she said. “Now, you would think that if you have a signed agreement with the United States, it would be worth its signature.”
PNM spokesperson Eric Chavez stated this to KOB 4:
“PNM is currently evaluating the energy project cuts that have occurred today. While these cuts could impact some technical enhancement projects, the company wants to ensure customers that the overall Grid Modernization Project that was approved by state regulators last year is still moving forward. PNM will continue to focus on providing safe and reliable power to the communities we serve.”
RecipientDOE Program Office DescriptionFederal Funding AmountTotal Project CostNavajo Transitional Energy Company, LLCOffice of Clean Energy Demonstrations (OCED)A full-scale integrated CO2 capture project for the four corners power plant located on the Navajo Nation.$6.6 Million $13.1 MillionKit Carson Electric CooperativeGrid Deployment Office (GDO)A distributed battery energy storage system for grid resiliency in Northern New Mexico.$15.4 Million$29.3 MillionPNM Grid Deployment Office (GDO)Virtual power plant (VPP) enablement that improves grid stability and reduces customers’ electricity bills.$35.6 Million$72.6 MillionNew Mexico Institute of Mining and TechnologyFossil Energy Carbon Management (FECM)Carbon storage hub: CarbonSafe Phase III, a project to develop a storage hub at a commercial scale within San Juan basin to verify these sites can securely store 50 million tons of CO2.$42.7 Million$53.5 MillionNew Mexico Institute of Mining and Technology Fossil Energy Carbon Management (FECM)Engineering highly scalable and efficient sorption materials for direct air capture.$1.5 Million$1.5 MillionNew Mexico Institute of Mining and Technology Fossil Energy Carbon Management (FECM)Advanced Retrofit Tech for methane emission mitigation for compressor stations. $6 Million$7.5 MillionNew Mexico Institute of Mining and Technology Fossil Energy Carbon Management (FECM)Methane Emission mitigation by field deployment of innovative controlled combustion tech.$6 Million$7.5 MillionSolar Dynamics Energy Efficiency and Renewable Energy (EERE)Solar thermal biosolids to fertilizer demonstration.$3 Million$35.6 MillionPajarito Powder, LLC Energy Efficiency and Renewable Energy (EERE)This project will allow Pajarito Powder to domestically produce oxygen evolution reaction (OER) catalysts at required levels to furnish the growing electrolyzer industry. $10 Million $13.2 MillionPajarito Powder, LLCEnergy Efficiency and Renewable Energy (EERE)This project aims to accelerate the domestic manufacturing ability of Pajarito Powder of durable engineered catalyst support materials.$8.5 Million$11 Million
