From the Wall Street Journal's Sustainable Business newsletter, June 2:
Department of Energy announced $3.7 billion worth of funding cuts for clean-energy and climate projects on Friday—in latest blow to green sector
Climate startups are feeling the impact of President Trump’s attacks on the energy-transition sector, as funding and job cuts, operational halts and bankruptcies rack up.
From carbon capture to solar power, companies across the clean-tech spectrum are reeling from funding withdrawals, policy changes and import restrictions brought in by the Trump administration as it has set about dismantling the climate goals of its predecessor.
On Friday, the Department of Energy announced $3.7 billion worth of funding cuts for clean-energy and climate projects, with a large portion of the cancelled grants focused on carbon capture and sequestration. Of 24 projects terminated in the move, 16 were signed between election day and Trump’s inauguartion, the DoE said in a statement.
“There are going to be some companies that do fall away because they do not have strong fundamentals,” said Amy Duffuor, general partner at Azolla Ventures, a climate focused venture capital investor. “But a lot of high quality companies that do not receive the funding will not scale.”
Last week, Republicans moved to roll back tax credits for solar, hydrogen and other clean-energy sources, while a number of government departments are exploring whether or not to keep billions of dollars worth of funds in place for projects such as carbon capture and storage. The impact of tariffs has also hit the sector hard, pushing up prices for imports.
The move marks a sharp reversal to the policies of the previous administration, which pumped billions into the sector, supercharging startups in the field and attracting automakers, battery manufacturers and solar producers from across the globe to set up shop in the U.S. because of the generous incentives offered by the government.
Now those companies are figuring out how to do it on their own, as funding is pulled.
In the past month, Li-Cycle, a Canadian battery recycling startup that had aimed to build large facilities in Rochester, N.Y., filed for bankruptcy, while Climeworks, a Swiss direct air capture startup, said it was cutting nearly a quarter of its staff amid uncertainty over whether millions of dollars in grants from the Energy Department would remain in place for its joint venture plant in Louisiana. Both declined to comment for this article.
The policy changes have pummeled stock prices of some clean-energy companies that went public in recent years. First Solar said in its earnings report that Trump’s tariffs would significantly raise costs for imports. Its stock is down 15% since the inauguration. Hydrogen startup Plug Power’s shares are down nearly 60% in the same time period and have fallen into penny stock territory, with the company announcing job cuts amid revenue struggles. It now faces being delisted from the Nasdaq. Likewise, Sunrun, a solar power provider, is down 25%. All companies were hit by news that tax credits for businesses working in the renewables field could be rescinded. Plug said it was continuing to “monitor the evolving landscape,” while First Solar declined to comment.....
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If you don't have an actual business: sales, earning, cash flow etc. you are so dependent on the kindness of strangers that you might as well be upfront about it and tell your investors you are using the Blanche DuBois business model.
