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Houston-area clean energy projects lose more than $700M in federal funds

funding cut

The Department of Energy has axed federal funding for Houston-area clean energy projects from ExxonMobil, Calpine and Ørsted. Photo via exxonmobil.com

The federal government has canceled more than $700 million in funding for three clean energy projects in the Houston area.

In all, the U.S. Department of Energy (DOE) recently wiped out $3.7 billion in funding for 24 carbon capture and decarbonization projects across the country.

Houston-area projects that took a hit are:

It’s unclear how the loss of federal funding will affect the three Houston-area projects.

All $3.7 billion from the DOE was awarded in 2024 and 2025 during the Biden administration—in some cases days before President Trump took office.

“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources, and advance projects that generate the highest possible return on investment,” U.S. Energy Secretary Chris Wright said in a release.

Advocates for clean energy sharply criticized the DOE’s action:

  • Jessie Stolark, executive director of the Carbon Capture Coalition, said cancellation of the 24 DOE-funded projects “is a major step backward in the nationwide deployment of carbon management technologies. It is hugely disappointing to see these projects canceled — projects that had already progressed through a rigorous, months-long review process by technical experts at DOE.”
  • Iliana Paul, deputy director for the Sierra Club’s industrial transformation campaign, complained that the Trump administration “killed dozens of major investments in American competitiveness, good jobs, and cleaner air to support Trump’s tax cuts and line the pockets of billionaires. These projects were not just pro-climate; they were pro-jobs, pro-innovation, and pro-public health. American workers, fenceline communities, and forward-thinking companies have had the rug pulled out from under them.”
  • Conrad Schneider, senior U.S. director of the Clean Air Taskforce, said the DOE’s move “is bad for U.S. competitiveness in the global market and also directly contradictory to the administration’s stated goals of supporting energy production and environmental innovation. Canceling cutting-edge technology demonstrations, including support for carbon capture and storage projects, undercuts U.S. competitiveness at a time when there is a growing global market for cleaner industrial products and technologies.”
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Tesla sales are down to start the year. Getty Images

Tesla sales tumble 13% as Musk backlash, competition and aging lineup turn off buyers

Tesla Talk

Tesla sales fell 13% in the first three months of the year, another sign that Elon Musk’s once high-flying electric car company is struggling to attract buyers.

The double-digit drop is likely due to a combination of factors, including its aging lineup, competition from rivals and a backlash from Musk’s embrace of right wing politics. It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.

Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives.

Analysts polled by FactSet expected much higher deliveries of 408,000.

Dan Ives of Wedbush said in a note to clients that Tesla is seeing soft demand in the United States and China, as well as facing pressure in Europe.

“The brand crisis issues are clearly having a negative impact on Tesla...there is no debate,” he said.

Ives said that Wall Street financial analysts knew the first-quarter figures were likely to be bad, but that it was even worse than expected, calling them a “disaster on every metric.”

The sales drop came three weeks after President Donald Trump held an extraordinary press conference outside the White House in which he praised Tesla, blasted boycotts against the company and bought a Tesla himself while TV cameras rolled in an effort to help lift sales.

“I don’t like what’s happening to you,” said Trump, before slipping into a red Model S and exclaiming, “Wow. That’s beautiful.”

After falling as much as 6% in early Wednesday, Tesla stock shot up more than 5% in afternoon trading after a report from Politico, citing anonymous sources, that Musk may soon step down from leadership of his Department of Government Efficiency, the cost-cutting group that has led to tens of thousands of federal workers losing their jobs.

Tesla investors have complained the DOGE work has diverted Musk's focus from Tesla, where he is the CEO. On Tuesday, New York City's comptroller overseeing pension funds down $300 million this year on Tesla holdings called for a lawsuit accusing a distracted Musk of "driving Tesla off a financial cliff.”

Tesla’s stock has plunged by roughly half since hitting a mid-December record as expectations of a lighter regulatory touch and big profits with Donald Trump as president were replaced by fear that the boycott of Musk's cars and other problems could hit the company hard.

Analysts are still not sure exactly how much the fall in sales is due to the protests or other factors. Electric car sales have been sluggish in general, and Tesla in particular is suffering as car buyers hold off from buying its bestselling Model Y while waiting for an updated version.

Still, even bullish financial analysts who earlier downplayed the backlash to Musk’s polarizing political stances are acknowledging that it is hurting the company, something that Musk also recently acknowledged.

“This is a very expensive job,” Musk said at a Wisconsin rally on Sunday, referring to his DOGE role. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half."

The protests come as the Austin, Texas electric vehicle maker faces fierce competition from other EV makers offering vastly improved models, including those of BYD. The Chinese EV giant unveiled in March a technology that allows it cars to charge up in just five to eight minutes.

Tesla is expected to report earnings of 48 cents per share for the first quarter later this month, up 7% from a year earlier, according to a survey of financial analysts who the car company by research firm FactSet.

Nearly all of Tesla’s sales in the quarter came from the smaller and less-expensive Models 3 and Y, with the company selling less than 13,000 more expensive models, which include X and S as well as the Cybertruck.

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Greentown Labs partners with California software developer on new center

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Greentown Labs has partnered with Los Angeles-based software development firm Nominal to launch the new Industrial Center of Excellence at Greentown's Houston incubator.

Nominal will provide access to its connected test and operations stack to help engineers working at Greentown Houston startups boost their "efficiency, automation, and scalability," according to a news release. The news comes just a few days after Greentown announced a partnership with Houston-based EnergyTech Nexus, which will also open an investor lounge on-site.

"Our mission is to remove friction for innovative entrepreneurs, so they can rapidly scale their transformative solutions," Lawson Gow, Greentown's Head of Houston, said in the release. "The Industrial Center of Excellence with Nominal will complement Greentown's robust prototyping, equipment, and lab offerings to accelerate entrepreneurs' ability to bring disruptive technologies out of the lab and into the world."

According to Greentown and Nominal, the partnership will support startups that are focused on decarbonizing the manufacturing sector, which Greentown estimates represents about a third of startups in its Houston incubator.

The new center will host specialized workshops and Nominal will now offer weekly office hours for Greentown startups.

"The future belongs to teams who can deliver resilient hardware faster than anyone else," Bryce Strauss, co-founder of Nominal, added in the statement. "Competitive edge is defined by test velocity. Nominal is building a connected stack of software tools where every discipline works shoulder-to-shoulder to make confident, real-time decisions."

Nominal, which supports engineering work in the aerospace, energy, automotive and defense industries, closed a $75 million series B round this summer.

CPS Energy invests $1.4B in Houston hydrogen-ready power plants

CPS Energy, which services San Antonio, has agreed to acquire four state-of-the-art natural gas power generation facilities in the Houston area from Missouri-based PROENERGY for $1.387 billion, according to a release.

The recently constructed plants have an aggregate electric capacity of 1,632 megawatts and are located in the Electric Reliability Council of Texas (ERCOT) markets in Harris, Brazoria and Galveston counties. The assets are dual-fuel capable, which would allow CPS Energy to transition to a hydrogen fuel blend and reduce carbon emissions.

CPS president and CEO Rudy Garza said that the acquisition presents a lower cost and lower supply chain risk alternative to building new power facilities while providing reliable, affordable and cleaner energy.

“We are getting the best of both worlds by securing new infrastructure without delay while also strengthening the power supply for our community,” Garza said in a news release. “This acquisition secures reliable capacity today – at a lower cost – and is a win for the customers of CPS Energy, the city of San Antonio and all the communities we serve by meeting their long-term energy needs. As we add resources to meet the needs of our fast-growing communities, we will continue to look to a diverse balance of energy sources that complement our portfolio, including natural gas, solar, wind, and storage, keeping our community powered and growing.”

PROENERGY will continue to staff, operate, and maintain the plants.

“By acquiring recently constructed, currently operating modern power plants that utilize proven technology already in use by CPS Energy, we avoid higher construction costs, inflationary risk, and long timelines associated with building new facilities – while also enhancing the reliability and affordability of the CPS Energy generation portfolio,” Garza added in the release.

CPS Energy is one of the nation’s largest public power, natural gas, and electric companies with 950,000 electric and 389,000 natural gas customers in the San Antonio area and surrounding counties.

Expert: How technology is transforming energy education and powering young minds

Guest Column

In today’s ever-changing digital world, the way we teach kids about science is rapidly transforming. Energy education, specifically, is expanding and contributing to the STEM landscape significantly. Helping children understand where energy comes from, how we use it in our everyday lives and how it affects our planet is critical to sparking early interest in STEM learning and inspiring potential careers in the energy industry.

Thanks to new technology and the power of artificial intelligence, we are better equipped to explain these complex ideas in fun, interactive and easy-to-understand ways.

The Role of Educational Technology in Classrooms

Traditional teaching methods can struggle to connect scientific concepts to students’ everyday experiences. A 2023 study found that technology not only makes learning more engaging and enjoyable but also encourages students to invest more effort in their studies over time.

Tools like tablets, smartboards, interactive simulations and gamified learning apps allow students to visualize energy systems, conduct virtual experiments and explore dynamic models that demonstrate how energy flows through different systems.

For example, virtual labs allow students to simulate the installation of solar panels or observe how wind turbines convert kinetic energy into electricity, all without leaving the classroom. These digital tools transform abstract theories into concrete, hands-on experiences, making it easier for students to understand and retain core principles of energy science.

Gamified learning has also become increasingly popular in K–12 classrooms because it engages students by meeting them where they are through interactive, game-like experiences. By incorporating familiar motivators such as points, levels, rewards and challenges, it taps into the same engagement techniques students encounter in video games and apps outside the classroom.

In an era when competition for students’ attention is higher than ever, more educators are turning to gamification because it works; it transforms passive learning into an active, student-centered experience, helping learners stay focused and motivated.

When applied to energy education, gamification can be especially powerful. Educational games that task students with managing a virtual city, designing energy-efficient systems or balancing an energy budget help build valuable real-world skills like problem-solving and systems thinking. Most importantly, they keep students engaged and make learning about energy meaningful.

Equity and Access in Educational Technology

While technology and AI offer immense potential to transform energy education, it is crucial to address the digital divide that exists across different schools and communities. Not all students have equal access to the devices, software or reliable internet connectivity needed to benefit from these innovative learning tools.

Bridging this gap requires collaborative efforts through public-private partnerships, targeted grants and community-driven educational outreach programs. These initiatives play a vital role in ensuring that every student, regardless of socioeconomic background or geographic location, has the opportunity to engage with tech-driven energy education.

Organizations like the Energy Education Foundation are taking meaningful steps in this direction. This fall, the nonprofit is launching EnergyXP, an innovative, mobile STEM learning experience designed for middle school students. The program offers 16 interactive, hands-on, and digital activities aligned with the Next Generation Science Standards, and is provided free of charge to participating schools. Through EnergyXP, students explore diverse energy concepts while building curiosity, collaboration and critical thinking skills. The program links classroom learning to real-world applications, helping students see the role of energy in their daily lives and sparking interest in STEM careers.

Other promising initiatives such as community tech hubs, low connectivity learning platforms, school-device loan programs and subsidized broadband options also support increased access to digital education. In Harris County, the Commissioners Court recently voted unanimously to create the Harris County Broadband Task Force with the aim of expanding internet access and affordability and addressing the growing digital literacy demands in the region. Additionally, Compudopt, a partner of the Energy Education Foundation, is another valuable resource for the Houston-area community. Its programs work to eliminate barriers to computer access, build technical and digital literacy skills, offer no- or low-cost high-speed internet options and support the long-term success of youth and their communities.

By supporting programs and organizations that decrease the digital divide, we can ensure that all students have access to engaging, technology-driven energy education. Providing young learners with the tools to explore, innovate and connect with the energy systems that power their world is key to building a more diverse, inclusive energy workforce for the future.

AI is Transforming the Energy Landscape

Students who utilize technology and AI in the classroom will be better equipped for the energy jobs of the future. As the energy sector continues to evolve, AI is becoming an essential tool for addressing complex challenges from optimizing energy production and distribution to accelerating innovation and improving system reliability.

By exposing students to AI-driven learning experiences early on, we can help them build the skills needed to understand and contribute to emerging technologies such as smart grids, predictive maintenance, renewable energy forecasting and energy storage optimization. These technologies are already shaping the future of how we produce, store and consume energy.

Through hands-on engagement with AI-powered simulations, data analysis tools and problem-solving scenarios, students are learning how to lead in a tech-driven, sustainable energy future.

As the world transitions toward more technology-driven energy systems, the importance of early, engaging and equitable energy education has never been more critical. Through the integration of technology, gamified learning and AI in the classroom, we can make science more accessible and empower students with the knowledge and skills they need to shape the future. Programs like EnergyXP demonstrate how innovation in education can bridge opportunity gaps, spark curiosity and lay the groundwork for a more inclusive and forward-thinking energy workforce. The investments we make in today’s classrooms will determine the energy leaders of tomorrow.

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Kristen Barley is the executive director of the Energy Education Foundation, a nonprofit dedicated to inspiring the next generation of energy leaders by providing comprehensive, engaging education that spans the entire energy spectrum.


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