National Cement Co of California has indicated that its US$1bn decarbonisation project at Lebec may still have a pathway to federal support, despite the U.S. Department of Energy (DOE) cancelling a previously announced award earlier this year.
Speaking during a classroom presentation to geology students at California State University Bakersfield, Lebec Plant Director Bruno Salomon said the company is now engaged in an administrative appeals process with federal authorities.
“So, the dialogue is going on,” Salomon told students. “I don’t know what is going to happen.”
National Cement believes the project — which aims to deploy advanced carbon-reduction technologies at the Kern County facility — remains aligned with the Biden administration’s priorities on domestic manufacturing and industrial decarbonisation, he said.
The project was originally selected in 2023 as one of 33 initiatives earmarked for major DOE support targeting hard-to-abate sectors such as cement, steel and aluminium.
The DOE cancelled the proposed US$500m subsidy in May 2025, stating that several selected projects “failed to advance the energy needs of the American people, were not economically viable, and would not generate a positive return on investment of taxpayer dollars.”
Salomon’s comments mark the first public suggestion from National Cement that the project could still secure federal backing. He did not offer a timeline or details on the appeals process.
The Lebec upgrade is one of the most ambitious U.S. cement-sector decarbonisation proposals to date, and its fate is being closely watched amid uncertainty over federal industrial-transition funding.