US clean tech subsidies aren’t as beneficial as expected: About 40% of the largest US clean tech manufacturing projects supported by the Inflation Reduction Act (IRA) and Chips Act have been delayed or paused due to deteriorating market conditions, slowing demand, and policy uncertainties, according to an investigation by the Financial Times.

A staggering problem: While the acts intend to boost US cleantech and semiconductor supply chains by extending over USD 400 bn in tax credits, loans, and grants, USD 84 bn worth of projects have faced delays ranging from months to years, with companies citing rising costs, supply chain issues, and the complex funding process as barriers to progress.

What projects are included? Among the delayed projects are Italian firm Enel’s USD 1 bn solar panel factory in Oklahoma, South Korean battery manufacturer LG Energy Solution’s USD 2.3 bn battery storage facility in Arizona, and US minerals manufacturer Albemarle’s USD 1.3 bn lithium refinery in South Carolina, FT writes.

Citizens are losing confidence in Biden’s policies: The delays raise concerns about the effectiveness of the current administration’s industrial policies in revitalizing US manufacturing, the newspaper reports. Despite the setbacks, the administration maintains that significant progress has been made in boosting construction and manufacturing in cleantech across the country.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • BHP, Rio Tinto, and Qantas invest in Australian carbon credits fund: Australian mining company BHP, the UK’s Rio Tinto, and Australia’s airline Qantas will invest AUD 80 mn (USD 52.7 mn) into an Australian carbon credits fund managed by Silva Capital. This comes in efforts to support land reforestation projects and generate Australian Carbon Credit Units for emissions reduction. The fund’s end goal is to raise AUD 250 mn. (Reuters)
  • TotalEnergies supplies its first 100% biofuel cargo for ships in Singapore: French oil major TotalEnergies’s subsidiary TotalEnergies Marine Fuels has delivered its first 100% pure (B100) biofuel cargo to Singapore. The company used the MAPLE — a chemical bunker tanker owned by Global Energy Group — to transfer 700 metric tons of biofuel made from 100% Used Cooking Oil Methyl Ester to Korean logistics company Hyundai Glovis. (Statement)
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