HOLLAND — Big plans for the Kraft Heinz Co. plant in Holland just hit a major snag. 

A $170 million federal grant that was supposed to help the factory slash its carbon emissions by more than 99% has been canceled by the Trump Administration, according to a recent news release.  

The grant was part of a larger $3.7 billion in clean energy funding that the administration decided to nix.

The Department of Energy award was initially meant to help the Holland plant, along with nine other Kraft Heinz facilities across the U.S., become much greener. 

It aimed to drastically cut carbon pollution, save billions of gallons of water, and significantly reduce energy use over the next decade. 

For Holland, this meant bringing in advanced technologies such as heat pumps and electric equipment to power the plant with cleaner energy.

In a statement released by Kraft Heinz, officials said the setback won’t stop them from investing in efficient projects. 

“We are aware of the unilateral decision made by the U.S. Department of Energy Office of Clean Energy Demonstrations. While we will continue to evaluate this decision, it does not change our intention to continue investing in our 30 U.S. manufacturing facilities,” the statement indicated. “Over the next approximately five years, we plan to invest $3 billion to modernize our U.S. supply chain infrastructure. We will continue to drive energy efficiency projects forward as we make these investments.”

However, the U.S. Energy Secretary Chris Wright announced the cancellation of 24 clean energy projects, including the Kraft Heinz grant, earlier this month. 

The administration claims these projects, many started under the previous Biden Administration, didn't have a thorough financial review, weren't truly viable, or wouldn't provide a good return on taxpayer money.

This move fits with the Trump Administration's shift in energy priorities. Their proposed budget for Fiscal Year 2026 seeks to dramatically cut funding for most clean energy programs within the Department of Energy. 

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For example, they're looking to slash the Office of Energy Efficiency and Renewable Energy by 74% and scale back other key clean energy initiatives such as the one that originally funded the Kraft Heinz project.

Secretary Wright has publicly expressed doubts about the severity of climate change and the speed at which the U.S. needs to transition to clean energy.

This sweeping change in federal energy policy isn't happening in a vacuum. The American Council for an Energy-Efficient Economy warned in May that ending these credits would hit families and businesses in their wallets. 

They say it would lead to higher utility bills, make manufacturing more expensive, and slow down the adoption of energy-saving technologies, potentially costing Americans billions, according to a press release.

— Sarah Leach is the executive editor of the Ottawa News Network. Contact her at sleach@ottawanewsnetwork.org. Follow her on Twitter @ONNLeach.