HIF Global, a US green fuel company, proposes a substantial $7 billion e-methanol plant in Texas’s Matagorda County—the world’s largest to date—to supply the global market. This facility would utilize captured carbon dioxide and on-site green hydrogen generated from renewable energy sources.

The project promises significant job creation and cleaner fuel for maritime and aviation sectors. However, HIF Global awaits a final investment decision, contingent upon the Republican-led Congress’s stance on clean energy tax credits, particularly those for clean hydrogen production.

The fate of these subsidies is intertwined with a comprehensive Senate budget bill. A House-passed version of this legislation includes cuts to the hydrogen tax credit and other reductions in clean energy incentives.

Lee Beck, HIF Global’s senior vice president, emphasizes that the credit is crucial for reducing costs and enabling competition with Chinese e-methanol producers, stating, “The goal is not to be dependent on tax credits over the long run, but to get the project started.”

Ms. Beck acknowledges potential challenges if the tax credit is eliminated, highlighting HIF Global’s international operations beyond the US. This uncertainty is compounded by the current administration’s approach to green energy.

The Trump administration’s actions, including withdrawal from the Paris Agreement, temporary suspension of renewable energy projects on federal lands, and a pause on Green New Deal funds (frequently referred to as the “Green New Scam”), have created a challenging environment.

These actions, coupled with ongoing legal battles over the pause on green funding, introduce significant uncertainty. Jessie Stolark of the Carbon Capture Coalition highlights the lack of clarity regarding project funding, impacting deployment and long-term industry confidence.

The budget bill’s consideration of permanent extensions to President Trump’s tax cuts, potentially at the expense of clean energy initiatives, further exacerbates the situation. The IRA’s tax credits, including those for EV purchases and home energy efficiency improvements, face potential elimination or significant curtailment.

The fact that many projects benefiting from these credits are located in Republican districts seemingly hasn’t influenced the House’s decision. Critics cite the high cost of Biden’s green energy initiatives, with reports highlighting the IRA’s energy tax credits as significantly exceeding initial estimates and posing potential unlimited liability to taxpayers.

Clean energy investment in the US experienced a 3.8% drop in Q1 2025, reaching $67.3 billion, according to the Clean Investment Monitor. Hannah Hess of the Rhodium Group attributes this decline to inflation, interest rates, supply chain issues, and policy uncertainty. She also notes a record number of canceled projects.

Anthony DeOrsey of Cleantech Group adds that tariffs could further negatively impact project decisions. Companies are adapting their marketing strategies; LanzaJet, for example, now emphasizes local feedstock utilization rather than solely focusing on climate change mitigation.

Even approved funding, like LanzaJet’s $3 million grant from the FAA, faces delays, highlighting the pervasive uncertainty impacting the US clean energy sector.

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HIF Global, a US green fuel company, proposes a substantial $7 billion e-methanol plant in Texas’s Matagorda County—a project touted as the world’s largest of its kind.

This facility would utilize captured carbon dioxide and on-site green hydrogen, powered by renewable energy, to produce e-methanol for cleaner shipping and aviation fuels. The project promises thousands of jobs.

However, HIF Global awaits a final investment decision, contingent upon the outcome of Congressional deliberations regarding clean energy tax credits, particularly those for clean hydrogen production.

The fate of these subsidies is intertwined with a comprehensive budget bill currently under Senate review. A House-passed version significantly curtails several tax credits, including the one for clean hydrogen.

Lee Beck, HIF Global’s SVP of global policy and commercial strategy, highlights the credit’s importance in reducing costs and enabling competition with Chinese e-methanol producers. “The goal isn’t long-term reliance on tax credits, but project initiation,” Beck explains.

The potential elimination of the tax credit presents significant challenges, Beck notes, although HIF Global operates internationally.

The current administration’s stance on green energy has been notably adversarial. Actions include withdrawal from the Paris Agreement, temporary suspension of renewable energy projects on federal lands, and a directive to pause Green New Deal funding, frequently referred to as the “Green New Scam.”

These actions, coupled with the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) funding, have created a complex landscape for clean energy development. Adie Tomer of the Brookings Institution describes the situation as “tumultuous,” noting a divergence from other developed nations’ approaches.

Legal challenges regarding the pause on green funding are ongoing, creating uncertainty. Jessie Stolark of the Carbon Capture Coalition highlights the lack of clarity, particularly concerning the continuation of IIJA-funded projects.

The budget bill, aiming to extend tax cuts while offsetting costs, will significantly impact the IRA’s future. Even if outright repeal is avoided, substantial cuts to the IRA’s tax credits, including those for EV purchases and home efficiency upgrades, are anticipated.

Credits for clean electricity and manufacturing components are also at risk of early phase-outs or reduced incentives. The geographic distribution of projects benefiting from these credits appears to have had little influence on the House’s decisions.

Critics cite the high cost of Biden’s green energy initiatives, with a Cato Institute report labeling the IRA’s energy tax credits as “multiple times” larger than initial estimates, exposing taxpayers to “potentially unlimited liability.”

Clean energy investment in the US, encompassing both public and private sectors, experienced a 3.8% drop in Q1 2025, according to the Clean Investment Monitor, marking the second consecutive quarterly decline. Hannah Hess of the Rhodium Group attributes this to inflation, interest rates, supply chain issues, and policy uncertainty.

A record number of clean energy manufacturing projects were cancelled in Q1 2025, further impacting investment. Hess expresses greater concern about the decrease in new project announcements, suggesting a lack of investor confidence in future demand.

Tariffs add to the challenges, potentially increasing construction costs. Anthony DeOrsey of the Cleantech Group emphasizes the combined effect of these factors on project decisions.

Companies are adjusting their marketing strategies. LanzaJet, a SAF producer, has shifted its messaging from climate change urgency to locally sourced feedstocks, reflecting a pragmatic adaptation to the current environment.

LanzaJet awaits a $3 million grant awarded by the FAA, part of a larger IRA-funded program, highlighting the broader delays in funding disbursement.

Indian start-ups are using local materials and innovative ideas to make useful and affordable products.

The vigilance needed in the military can be an asset in the cybersecurity industry.

Cooling systems that avoid the use of polluting refrigerants are being launched.

Whole TV shows shot in one long take are made possible by new lightweight cameras.

Hear from the team who test security by breaking into secure facilities.