Carbon Management Demotion (‘Big Oil’s failed political bet)

“Let the lesson be clear. Avoid political bribes intended to get a company to do what consumers do not want done. Respect taxpayer neutrality. Value economic freedom. Pursue good profit, not bad.”

Political capitalism is risky business. And Big Oil, as renewable companies (PPL Corp., Ørsted), is paying the price. Eating at the table of the Climate Industrial Complex, rather than proudly concentrating on its core business of serving consumer demand, has resulted in many federal loan cancellations. Think Exxon Mobil.

Turning to Big Gas, two Calpine grants for carbon capture and storage took a hit: 550-MW gas-fired Sutter power plant in Yuba City, California and 810-MW Baytown power plant in Baytown, Texas.

As reported in a press release last week from the U.S. Department of Energy:

U.S. Secretary of Energy Chris Wright today announced the termination of 24 awards issued by the Office of Clean Energy Demonstrations (OCED) totaling over $3.7 billion in taxpayer-funded financial assistance. After a thorough and individualized financial review of each award, DOE found that these projects failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars. 

Of the 24 awards cancelled, nearly 70% (16 of the 24 projects) were signed between Election Day and January 20^th. The projects primarily include funding for carbon capture and sequestration (CCS) and decarbonization initiatives. By terminating these awards, DOE is generating an immediate $3.6 billion in savings for the American people.

Flawed, rushed gold-bars-off-the-Titanic was mentioned in the press release.

“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,” said Secretary Wright. “Today, we are acting in the best interest of the American people by cancelling these 24 awards.”

Some background was provided:

Earlier this month, DOE issued a Secretarial Memorandum entitled, “Ensuring Responsibility for Financial Assistance,” which outlined DOE’s policy for evaluating financial assistance on a case-by-case basis to identity waste of taxpayer dollars, protect America’s national security and advance President Trump’s commitment to unleash affordable, reliable and secure energy for the American people. DOE utilized this review process to evaluate each of these 24 awards and determined that they did not meet the economic, national security or energy security standards necessary to sustain DOE’s investment.

The list from Utility Dive involves 24 rent-seeking, crony companies:

Let the lesson be clear. Avoid political bribes intended to get a company to do what consumers do not want done. Respect taxpayer neutrality. Value economic freedom. Pursue good profit, not bad.

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