DOE cancels Biden-awarded loan for huge Midwest power line

The US Department of Energy has terminated a $4.9 billion loan guarantee for the Grain Belt Express, a massive power line project in the Midwest. The project, which was criticized by conservatives as a "green energy scam," aimed to connect Kansas to Indiana and unlock access to wind and solar energy resources. The Energy Department's loan office, which backs low-emissions technology, had announced the loan guarantee in November, but after a review, found that the conditions necessary to issue the guarantee were unlikely to be met. The department stated that it was not critical for the federal government to have a role in supporting the project. Missouri GOP officials, including Senator Josh Hawley and Attorney General Andrew Bailey, had opposed the project, arguing it would harm farmers and landowners and criticizing the use of eminent domain. Despite the setback, Invenergy, the company behind the project, plans to move forward with private financing and has discussed connecting a gas-fired power plant and existing coal-fired generation to the line. This could change how the project is perceived, as it would involve fossil fuels. The project's spokesman argued that it would still advance American energy and technology dominance, deliver energy cost savings, and create jobs. The termination of the loan guarantee marks another Trump administration effort to undo its predecessor's actions on energy.