(The Center Square) – After months of uncertainty, U.S. Energy Secretary Chris Wright confirmed Wednesday that the Project Cypress Direct Air Capture project in Louisiana has survived a “critical” department-wide audit—conducted as part of a broader administration review of federal spending—with funding of up to $600 million possible.
In testimony Wednesday at a fiscal 2027 budget hearing, Wright announced the completion of a monthslong review of about 2,200 projects approved during the Biden presidency, which includes Project Cypress, an initiative with sites at the Port of Caddo-Bossier and in Calcasieu Parish.
Testifying before the House Appropriations Subcommittee on Energy and Water Development, Wright said roughly 80%—or approximately 1,950 awards—passed the administration’s test of business viability and would either be “retained or modified” rather than canceled. Wright said the administration prioritized projects with “meat on the bones” and clear business plans, rejecting those deemed impractical or wasteful.
“I am happy to say that effort has finally come to a completion,” Wright said. “We have finished that effort and we are keen to move forward with the majority of projects, which did pass [the review] either straight up or through restructuring.”
Project Cypress is eligible for up to $600 million in federal grants tied to a pay-for-performance structure that requires matching private sector investment. To date, the Department of Energy has disbursed $50 million to the developers.
Heirloom, a San Francisco-based direct air capture company, will proceed with its plans at the Port of Caddo-Bossier after what company Head of Policy Vikrum Aiyer called a “rigorous review.” The carbon captured at the site will be sent by pipeline approximately 100 miles for permanent burial at the Central Louisiana Regional Carbon Storage Hub (CENLA Hub) operated by CapturePoint.
While Heirloom focuses its operations in northwest and central Louisiana, Climeworks serves as the second anchor technology provider. The Zurich-based company plans to construct its own facility in Calcasieu Parish near Vinton. Through a partnership with Gulf Coast Sequestration, developers plan to pump captured carbon about 10,000 feet underground for permanent storage at a privately owned cattle ranch situated between Lake Charles and the Sabine River.
To qualify for the full $600 million in federal support, the DOE requires a “Community Benefits Plan,” a legally binding framework designed to ensure taxpayer investment translates into measurable local gains. Project developers say the hub will create at least 1,000 construction jobs and over 80 permanent positions, with many workers in Calcasieu Parish expected to earn average annual salaries of $123,000.
These opportunities are supported by partnerships with Bossier Parish Community College and SOWELA Technical Community College, where developers are helping design a specialized curriculum for the emerging industry.
“We appreciate the Trump Administration for supporting American Jobs and further empowering Louisiana’s role in the American Energy Dominance Agenda,” said Tommy Faucheux, president of the Louisiana Midcontinent Oil & Gas Association.
Louisiana is one of only six states with “primacy” over Class VI injection wells, giving state regulators rather than the federal government the authority to regulate underground carbon storage. Gulf Coast Sequestration is currently in the advanced stages of the permitting process, with final approvals expected within 12 to 18 months.
