US clean energy companies are facing mounting uncertainty as Congress weighs deep cuts to green energy tax credits. Projects like HIF Global's proposed $7bn e-methanol facility in Texas are now in limbo, with developers warning that the loss of hydrogen subsidies could stall investment decisions.
The plant would convert green hydrogen and captured carbon into low-emission fuel for global aviation and shipping, but without support, firms may shift focus to other markets.
The Biden-era Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) had sparked billions in green investment, especially in Republican-led states.
However, the Trump administration's rollback efforts and proposed budget cuts could sharply reduce or terminate credits for clean electricity, electric vehicles, and energy-efficient home improvements. Agencies have paused or delayed funding while legal disputes continue, worsening industry-wide uncertainty.
Clean energy investment fell for the second consecutive quarter, according to new data, with $6.9bn in battery manufacturing projects cancelled.
Developers now face rising tariffs, high interest rates, and unclear policy direction, leading to declining confidence in the market. Firms are adjusting strategies to appeal to stakeholders beyond climate goals, focusing instead on local benefits and energy security.
