The US Department of Energy (DoE) said that the Loan Program Office (LPO) has revoked the conditional commitment offering a taxpayer-funded loan guarantee of up to $4.9bn for the Grain Belt Express Phase 1 project.
The decision impacts the 1,290km (800-mile) transmission line using high-voltage direct current (HVDC) technology across Kansas, Missouri, Illinois, and Indiana.
Grain Belt Express, an Invenergy project, aims to enhance US energy delivery capacity by 5GW.
Initially, Grain Belt Express secured conditional commitment by the Biden administration in November 2024.
However, after reviewing the project’s financials, the DoE determined that the conditions necessary for the guarantee are unlikely to be met.
The department concluded that federal support is not critical for this project.
DOE stated: “After a thorough review of the project’s financials, DoE found that the conditions necessary to issue the guarantee are unlikely to be met and it is not critical for the federal government to have a role in supporting this project. To ensure more responsible stewardship of taxpayer resources, DoE has terminated its conditional commitment.”
The project is expected to provide $52bn in energy cost savings over 15 years by unlocking market efficiencies.
The Phase 1 portion, connecting Kansas and Missouri, was set to begin construction in 2026, creating over 4,000 jobs.
Grain Belt Express stated: “While we are disappointed about the LPO loan guarantee, a privately financed Grain Belt Express transmission superhighway will advance President Trump’s agenda of American energy and technology dominance while delivering billions of dollars in energy cost savings, strengthening grid reliability and resiliency, and creating thousands of American jobs.”
According to the DoE, it is undertaking a comprehensive evaluation, which includes scrutinising nearly $100bn in finalised loans and provisional commitments made by the LPO from the 2024 Election Day to the 2025 Inauguration Day.
It went on to say that the goal is to ensure that every taxpayer dollar is utilised to benefit the American public effectively and this ongoing assessment aims to enable the LPO to adopt a more cautious approach to lending, with a focus on enhancing access to affordable, reliable, and secure energy for Americans.
