Sublime Systems, a Massachusetts-based producer of low-carbon cement, has put construction of its planned manufacturing facility on hold after losing a major federal funding commitment, the company confirmed. The pause affects a future plant in Holyoke, Massachusetts, and has already resulted in workforce reductions.
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The company said it has laid off approximately 10% of its staff following the cancellation of an $87 million grant from the U.S. Department of Energy. The grant, awarded in March 2024, was expected to cover roughly half of the cost of building the new facility.
According to Sublime, the sudden withdrawal of federal support disrupted the project’s financing structure, forcing the company to reassess its approach to scaling production. As a result, construction activity at the Holyoke site has been paused while alternative options are evaluated.
The facility had been scheduled to open in early 2026 and was projected to produce up to 30,000 tons of low-carbon cement annually. During construction, the project was expected to support hundreds of jobs, with an estimated 70 to 90 permanent positions once operations began.
The Holyoke plant was among 33 projects in more than 20 states slated to receive funding under a broader federal initiative totaling up to $6 billion. However, that funding landscape shifted dramatically earlier this fall.
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On Oct. 2, the Department of Energy announced it had terminated 321 financial awards tied to 223 projects, citing a review process that found the initiatives did not meet revised economic, national security or energy security criteria. The agency said the cancellations would result in savings of more than $7.5 billion.
Industry observers say the decision highlights growing uncertainty for construction and manufacturing projects that rely heavily on federal funding. The funding pullbacks—combined with policy shifts earlier in the year and the impact of a recent government shutdown—have added strain across multiple segments of the construction sector.
Despite the setback, Sublime said it remains engaged with federal officials and continues to explore paths forward for its low-carbon cement technology, which has been positioned as a tool for domestic manufacturing and reduced reliance on imports.
“We are actively working through a robust set of alternative scale-up plans and have several exciting options to bring our first commercial plant online,” the company said.
While no revised construction timeline has been announced, Sublime indicated that discussions with the Department of Energy are ongoing as it evaluates new funding structures and potential partnerships to advance the project.
Originally reported by Matthew Thibault in Construction Dive.
