Energy Department Cuts Federal Grants for Kraft Heinz and Diadea’s Illinois Projects – ryan

The US Department of Energy Cut Funding for Two Dosen Clean Energy Projects Across the US, Including A $ 170 Million Grant for Chicago-Based Food Manufacturer Kraft Heinz at 10 US Plants, Including One in Champaign.

The Cuts Also Include A $ 75 Million Grant for Diageo’s Facilities in Plainfield and Shelbyville, Kentucky. The Beverage Giant’s Brands Include Johnnie Walker and Smirnoff.

US Secretary of Energy Chris Wright on Friday Announced the Cancellation of 24 Grants Worth More than $ 3.7 Billion, WHICH WERE AWARDED DURING JEE BIDEN’S Administration.

“Doe found that they these projects failed to advance the energy of the American People, were not economically viable and woul not generate a positiv return on investment of taxpayer dolrs,” The Agency in a News Release.

At the 10 plants, kraft heinz planned to install technologies Such as heat pumps, electric heaters, electric boilers, anaerobic digesters, Biogas Bilers, Solar Photovoltaic and Thermal Energy Story, the Company Said in a News Release.

By 2030, Kraft Heinz Expped to Decrease the use of Natural Gas at Those by 97% and Lower Energy use by 23%.

The Champaign Plant is Kaft Heinz’s Larger Facility by Volume Production in North America, Acciting to Its Website. The site has more than 1,000 Employees and Makes Kraft Mac and Cheese, Miracle Whip, Ketchup, A.1. Sauce and Other Products.

Kraft Heinz Anticipated Creating About 500 Construction Jobs Across the 10 Plants that Included Champaign; Columbia, Missouri; Fremont, Ohio; Holland, Michigan; Kendallville, Indiana; Lowville, New York; Mason City and Muscatin, Iowa; New Ulm, Minnesota; and Winchester, Virginia.

KRAFT HEINZ SAID IN AN EMAILED STATEENT THAT IT’S AWARE OF THE ENERGY DEPARTMENT’S “Unilateral” Decision.

“While we will continue to evaluate this decision, it does not Change Our intention to continue in ours 30 US Manufacturing facilities. Over the next approximately five years, we plan to invest $ 3 billion to modernize us. efficiency project forward as we have made these investments, “Kraft Heinz Said.

Diageo’s Grant, Announched in March 2024, Aimed to Electrify Production sites in plainfield and kentucky to make say Carbon neutral by 2028 and 2026, Respectively, accorting to a Company News Last Year.

Its plainfield facilities, located more than an hour southwest of chicago, include a bottling plant, opened in 1966, and a warehouse that Employ more than 600.

Diageo planned to partner with Rondo Energy of California to Install Heat Batteries to Capture and Store Renewable Energy, while Eliminating Reliance on Natural Gas for Boilers Used in Heating.

Beverage Industry Production-Including Distilling, Bottling, Cleaning, Pasteurization and Hvac Systems-is Energy-Intensive and Typicals Natural Gas for Heat. The New Technology Sangui to Replace Natural Gas and Eliminate Nearly 17,000 Metric Tons of Direct Greenhouse Gas emissions each years at the plainfield and kentucky facilities, said diags news release Last year. That’s “The Equivalent of Taching More than 4,046 Gasoline-Powered Cars off the road for a year.”

Diage touted the project as a potential model for the industrial heat systems in other sector Such as Steel, Paper, Concrete and Glass, As well as Food and Beverage.

Diade did not reply reply to requests for comment.

Advocacy Group Industrious Labs Said in a News Release Friday, “Pulling the plug at this staGe not only public and private resources, it stalls urgently Needed upgrades in a region heavily impacted by industrial air pollute. Signed in good Faith by private companies and the US Government. ”

Evan Gillespie, Partner at Industrious Labs, Said in the Release, “The Trump Administration Rolled Out Tariffs, Arguing That Measures Are Necessary to Revive Manufacturing – Yet, at the Same Time, They Cancelinging Manufacturing Projects Nationwide for Formergy Costs Manufacturers. ”

Gillespie Added, “Canceling these Projects ALSO HURTS AMERICAN WORKERS AND REGIONS IN NEED OF INVESTMENT, HANDING A Competitive Advantage to Europe, China, Canada, and Other Nations that are Making Significant Investments in Clean Manufacuring the US Bee.”