Three US glass manufacturers have had federal funding for decarbonisation projects cut.

O-I Glass, Gallo Glass and Libbey Glass have had millions cut after the US Department of Energy said it was terminating project awards under the Office of Clean Energy Demonstrations.

The grant to Perrysburg-based O-I Glass would have reduced emissions by up to 40% at its Zanesville, Ohio facility.

The world's largest container glassmaker was set to receive up to $125 million to rebuild four furnaces across three facilities - Zanesville, OH; Toano, VA and Tracy, CA.

The Toano and Tracy projects were not on the list of cancelled grants.

The $45 million grant to Libbey Glass was set to reduce greenhouse gases by 60% at the tableware manufacturer's Toledo facility. 

It planned to replace four regenerative furnaces with two larger hybrid electric furnaces.

In Modesto, California, a $75 million grant to help reduce fuel use at Gallo Glass has also been stopped.

It planned to install a demonstration hybrid electric furnace to reduce natural gas use by 70% and increase recycled content by 30% in its glass bottle production process.

The grant was among 33 announced in March last year. These totalled $6 billion across several industries. The funding came from two climate spending packages signed by former President Joe Biden.

But on Friday the Trump administration said it was terminating 24 awards, reducing the total awards from $6 billion to $2.3 billion. 

US Secretary of Energy Chris Wright said the decision was 'in the best interest of the American people' and a result of a 'thorough and individualised financial review' of the grants. 

"Of the 24 awards cancelled, nearly 70% (16 of the 24 projects) were signed between Election Day and January 20th. 

"The projects primarily include funding for carbon capture and sequestration (CCS) and decarbonization initiatives. 

"By terminating these awards, DOE is generating an immediate $3.6 billion in savings for the American people."