Over $1 billion in federal funding got slashed for this polluting industry

The startup’s approach is to make cement using electricity. The conventional process requires high temperatures typically achieved by burning fossil fuels, so avoiding that could prevent a lot of emissions.

In 2024, Sublime received an $87 million grant from the DOE to construct a commercial demonstration plant in Holyoke, Massachusetts. That grant would have covered roughly half the construction costs for the facility, which is scheduled to open in 2026 and produce up to 30,000 metric tons of cement each year.

“We were certainly surprised and disappointed about the development,” says Joe Hicken, Sublime’s senior VP of business development and policy. Customers are excited by the company’s technology, Hicken adds, pointing to Sublime’s recently announced deal with Microsoft, which plans to buy up to 622,500 metric tons of cement from the company.

Another big name, Brimstone, also saw its funding affected. That award totaled $189 million for a commercial demonstration plant, which was expected to produce over 100,000 metric tons of cement annually.

In a statement, a Brimstone representative said the company believes the cancellation was a “misunderstanding.” The statement pointed out that the planned facility would make not only cement but also alumina, supporting US-based aluminum production. (Aluminum is classified as a critical mineral by the US Geological Survey, meaning it’s considered crucial to the US economy and national security.)

An award to Heidelberg Materials for up to $500 million for a planned Indiana facility was also axed. The idea there was to integrate carbon capture and storage to clean up emissions from the plant, which would have made it the first cement plant in the US to demonstrate that technology. In a written statement, a representative said the decision can be appealed, and the company is considering that option.