Photo courtesy of Kraft Heinz The New Ulm Kraft Heinz cheese plant on South Bridge Street on South Bridge Street was to receive a $3 million federal grant this year for energy-efficiency upgrades that would cut carbon emissions by 99%. The green energy project lost federal backing this spring when the U.S. Department of Government Efficiency (DOGE) recommend eliminating the grant as part of a $3.6 billion energy expenditure cut.

NEW ULM — Just when it appeared the federal government was backing a green energy project at the Kraft Heinz cheese plant that makes Velveeta and Cheez Whiz, the U.S. Department of Government Efficiency (DOGE) cut a $170 million grant to help the company de-carbonize it’s 10 U.S. plants.

Last year, New Ulm plant was earmarked to receive $3 million in federal funds for energy efficiency upgrades that would have reduced carbon emissions by 99%.

Kraft Heinz did not answer questions about the New Ulm plant project but said the food company plans to continue investing in its U.S. facilities.

“We are aware of the unilateral decision made by the U.S. Department of Energy,” said a Kraft Heinz spokesperson. “While we will continue to evaluate this decision, it does not change our intention to continue investing in our 30 U.S. manufacturing facilities. Over the next five years, we plan to invest $3 billion to modernize our U.S. supply chain infrastructure. We will continue to drive energy efficiency projects forward as we make these investments.”

Kraft Heinz expected the energy-efficiency projects to be complete by 2030. It was not made known if any project work in New Ulm began.

Last September, the New Ulm Kraft Heinz plant that employs about 400 workers celebrated 70 years in New Ulm. At one time, it was the largest processed cheese facility in North America.

Last fall, a Kraft spokesperson said the corporation was investing in plant infrastructure including digitizing production floor operations, refreshing employee meeting and break rooms and more.

The spokesperson said Kraft’s commitment to sustainability is reflected in a zero waste-to-landfill project that diverts more than 1.75 million pounds of waste into energy each year..

Since the program began in 2010, it repurposed 12,495.7 tons of waste.

“New Ulm is the sole U.S. producer of Kraft Heinz Deli Deluxe and Velveeta cheese products, crafting more than 305 million pounds of annual products,” said the spokesperson.

Kraft Heinz shifted retail Velveeta production out of New Ulm a decade ago but brought it back with a $100 million investment in 2017. The first plant opened in 1955.