The US will spend $8 billion on clean energy research in 2012 under President Obama’s proposed budget, which also proposes to slash fossil fuel subsidies.

 

In the 2012 budget, announced last week, Obama is seeking to remove $3.6 billion in oil, gas and coal subsidies to help pay for R&D into wind, solar and advanced batteries and other green energy sources, Reuters reports. 

 

The White House is proposing to add three more energy innovation hubs, allowing scientists to work on rare earths, energy storage and smart grid technologies.

 

The budget, which needs the approval of Congress, also targets a 45%, or $418 million, reduction in funds for the Fossil Energy Office.

 

While the Republican-dominated Congress is certain to oppose cutting subsidies for fossil fuels, it is expected to vote for the $36 billion sought in loan guarantees to help finance nuclear power plant construction. The current program, which already has $18 billion in available credit, expects to get six to eight new power stations built.

 

Separately, the budget allocates $853 million to support new nuclear energy technologies.

 

“Whomever leads in the global, clean energy economy will also take the lead in creating high-paying, highly skilled jobs for its people,” the budget statement said.