The U.S. Department of Energy (DOE) made headlines last Friday by announcing the discontinuation of funding for two dozen clean energy projects across the country.
Among the notable projects affected is a $170 million grant aimed at Chicago-based food manufacturer Kraft Heinz, which planned to implement energy-efficient technologies at ten U.S. plants, including its largest facility in Champaign, Illinois.
The cancellation also includes a $75 million grant intended for Diageo, the beverage giant famous for brands like Johnnie Walker and Smirnoff, with facilities in Plainfield and Shelbyville, Kentucky.
Secretary of Energy Chris Wright stated that these projects were deemed inadequate in their potential to address the energy needs of Americans, with the DOE emphasizing that many projects lacked economic viability and would not deliver a satisfactory return on taxpayer investment.
In a previous statement, Kraft Heinz had outlined plans for significant energy efficiency improvements at its plants.
Technologies intended for installation included heat pumps, electric heaters, anaerobic digesters, and solar energy systems, among others.
The company had projected that by 2030, natural gas consumption at those sites would be reduced by an impressive 97%, alongside a 23% decrease in overall energy use.
The Champaign facility stands out as Kraft Heinz’s largest production site by volume in North America, employing over 1,000 workers who produce popular products such as Kraft Mac and Cheese, ketchup, and Miracle Whip.
Kraft Heinz anticipated creating approximately 500 construction jobs related to these energy initiatives across its ten facilities spread out in states like Indiana, Ohio, and New York.
Following the DOE’s announcement, Kraft Heinz indicated awareness of the funding cancellation but reaffirmed the company’s commitment to invest in its U.S. operations.
In a statement, the company noted, “While we will continue to evaluate this decision, it does not change our intention to continue investing in our 30 U.S. manufacturing facilities.
We plan to invest $3 billion over the next five years to modernize our U.S. supply chain infrastructure and will continue to drive energy efficiency projects forward.”
Similarly, the funding cut significantly impacts Diageo, which was targeting electrification to make its production sites in Plainfield and Kentucky carbon neutral by 2028 and 2026, respectively.
This initiative included a partnership with Rondo Energy to adopt heat battery technology capable of capturing renewable energy, thus lessening dependence on natural gas for heating purposes.
Diageo’s efforts were praised for potentially serving as a model for other energy-intensive industries, ranging from steel to the food and beverage sector.
However, following the grant cancellation, Diageo has declined to comment on the situation.
In response to the DOE’s actions, advocacy group Industrious Labs expressed strong disapproval.
They highlighted that the cancellation of these projects not only squanders valuable public and private resources but also hampers necessary improvements in regions already facing onerous industrial air pollution.
Evan Gillespie, an Industrious Labs partner, criticized the DOE’s decision, emphasizing that it undermines contracts made in good faith and exacerbates challenges for American manufacturing jobs and communities.
Gillespie remarked, “The Trump administration rolled out tariffs, arguing that these measures are necessary to revive manufacturing — yet, at the same time, they are canceling manufacturing projects nationwide and increasing energy costs for manufacturers.”
According to him, terminating these projects impairs regions that need investment the most, giving a competitive edge to other countries investing heavily in clean manufacturing solutions.
As the U.S. continues navigating its energy strategy, the elimination of these large-scale clean energy projects raises questions about future commitments to sustainable manufacturing and the jobs associated with it.
image source from：https://chicago.suntimes.com/energy/2025/06/02/energy-department-federal-grants-kraft-heinz-diageo-illinois-projects
