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US Energy Dept Focuses on Fossil Fuels and Nuclear

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Fossil fuel

According to the latest reports, the U.S. Department of Energy recently released a new organizational chart announcing a major restructuring of the department. The core of this adjustment is to prioritize fossil fuels and nuclear energy, replacing the previous focus on renewable energy and energy efficiency. The new chart indicates that the Clean Energy Demonstration Office established under former President Biden has been eliminated. Offices previously responsible for promoting renewable energy and enhancing energy efficiency have also disappeared from the organizational structure. Concurrently, the Department has established new offices for Hydrocarbons and Geothermal Energy, as well as a Fusion Energy Office.

Strategic Shifts and Policy Background

U.S. Energy Secretary Chris Wright stated in a declaration that this restructuring aims to better enable the Department of Energy to execute the Trump administration’s core plan of “restoring American energy dominance.” He noted: “Under President Trump’s leadership, the Department of Energy is realigning its operations to restore common sense in energy policy, reduce costs for American families and businesses, and ensure responsible stewardship of taxpayer funds.”
This reorganization reflects the Trump administration’s priorities of expanding U.S. energy production, accelerating scientific and technological leadership, and ensuring the continued safety and readiness of the nuclear weapons stockpile. Analysts note that the move signals Trump’s attempt to overturn former President Biden’s stance on policies addressing global warming. Trump has previously described climate change as “the greatest hoax of all time.”

Nuclear Energy Revival

In this energy policy adjustment, nuclear power’s role as a baseload energy source has been significantly reinforced, propelling the U.S. nuclear industry into a phase of scaled recovery. In January 2025, the U.S. Department of Energy approved a $1.52 billion loan guarantee to support the restart and power enhancement of the Palisades Nuclear Power Plant. According to a progress announcement from the U.S. Nuclear Regulatory Commission (NRC), the restart license for the plant is expected to be issued in the third quarter of 2025. The Palisades Nuclear Power Plant is projected to achieve commercial operation by the end of 2025, becoming the first landmark project in U.S. nuclear history to resume operations after a shutdown.

In early January 2025, the Nuclear Regulatory Commission formally approved the second operating license extension for Unit 1 of the Monticello Nuclear Power Plant, extending its design life from 60 to 80 years. This decision provides policy support for maximizing the full lifecycle value of existing nuclear assets. Additionally, the U.S. federal government has proposed a “nuclear power nationalization and expansion” plan, aiming to acquire controlling stakes in up to 10 new large pressurized water reactor units through asset purchases. Industry sources indicate that the $550 billion in energy investments to the U.S. previously pledged by the Japanese government may serve as a key funding source for this initiative.

Domestic and Global Reactions

The shift in U.S. energy policy has sparked widespread attention and debate both domestically and internationally. U.S. Energy Secretary Wright stated at a congressional hearing that the new policy will establish a domestic energy supply system that is “economically accessible, reliably supplied, and safely operated,” strengthening the resilience of national energy security. However, environmental organizations express concern that related plans may threaten marine life and coastal regions across the United States. Joseph Gordon, campaign director for the marine conservation group Oceana, emphasized that large-scale offshore drilling expansion is precisely what the U.S. needs least at present.

As the nation with the highest cumulative carbon emissions globally, President Trump has sought to overturn multiple clean energy initiatives enacted by the previous Democratic administration. His energy agenda aims to expand domestic fossil fuel production, lower energy costs, and enhance U.S. influence in the global energy market. Despite this policy shift, the World Energy Investment Report 2025 projects global energy investments in renewable energy, nuclear power, power grids, energy storage, low-emission fuels, energy efficiency, and electrification will rise to $2.2 trillion.

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