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Dive Brief:
- Sublime Systems, a low-carbon cement maker, has halted construction on its upcoming manufacturing plant in Holyoke, Massachusetts, and laid off 10 percent of its workforce, according to a company statement sent to Construction Dive.
- The news comes on the heels of the Department of Energy’s cancellation the company’s $87 million grantwhich Sublime received under former President Joe Biden in March 2024.
- Due to the cancellation, the company experienced issues with its capital stack and will therefore consider alternative options for the facility, Sublime said. The grant was intended to finance 50% of the plant’s costs.
Diving knowledge:
Sublime expected installation, originally to open in early 2026to produce up to 30,000 tonnes per annum of low-carbon cement and create hundreds of jobs during the construction phase of the project, with an additional 70 to 90 roles ongoing once the plant is operational. It was one of 33 projects from more than 20 states slated to receive up to $6 billion in funding.
But on Oct. 2, the DOE announced that it did canceled 321 financial aids for 223 total projects, all in states that voted for former Vice President Kamala Harris in the 2024 general election, for a claimed savings of more than $7.5 billion. The agency used a review process that determined the canceled projects did not meet economic, national security or energy security standards that would require continued investment.
The recovery in financing is another example of how the uncertain financing environment has affected the construction industry. The Trump administration’s moves throughout the year withdraw federal dollars of projects from the entire spectrum of construction, added with the recent government shutdowncreated tension in the construction industry.
Looking ahead, Sublime said it remains in discussions with the DOE about the potential of low-carbon cement and its use in import reduction and settlement, according to the statement.
“We are actively working through a robust set of alternative expansion plans and have several exciting options for bringing our first commercial plant online,” the company said.
