A large-scale industrial decarbonisation project led by Kraft Heinz in the United States has been cancelled following a major shift in federal energy policy. The initiative, which featured significant biogas integration, was among more than two dozen clean energy demonstration projects cut by the U.S. Department of Energy, reports Bioenergy Insight.
The project had been awarded $170 million (approximately €158 million) by the Department’s Office of Clean Energy Demonstrations. The funding was intended to support the installation of biogas systems, solar power, and heat pump technology across 10 of the company’s manufacturing facilities in states including Illinois, Ohio, and Virginia.
U.S. Energy Secretary Chris Wright announced the withdrawal of support as part of a broader cancellation of $3.7 billion (€3.44 billion) in clean energy demonstration funding. He stated that the previous administration had not conducted sufficient financial review before allocating taxpayer dollars. The current administration is now reassessing clean energy spending to prioritise projects with stronger financial returns and better alignment with national energy security goals.
Kraft Heinz had already received an initial $5.9 million (€5.5 million) grant in late 2024. The full project aimed to reduce the company’s natural gas consumption by 97% and total energy use by 23% by 2030, in line with its broader commitment to reach net-zero greenhouse gas emissions by 2050.
Despite the cancellation, Kraft Heinz has confirmed it will continue investing in its operations independently. “This decision does not change our intention to continue investing in our 30 U.S. manufacturing facilities,” a company spokesperson said. Kraft Heinz plans to invest $3 billion (€2.79 billion) over the next five years in supply chain modernisation.
The policy change also impacts other industrial firms, including steelmaker Cleveland-Cliffs, which reported that one of its clean energy projects will likely require major revisions. While some projects may seek private funding to move forward, many are expected to face delays or restructuring.
