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Siemens Energy, RWE warn of Trump fallout in US offshore wind sector

investing.com 13/11/2024 - 10:52 AM

Concerns Over U.S. Offshore Wind Under Trump Presidency

By Christoph Steitz and Vera Eckert

MUNICH/FRANKFURT (Reuters) – Two of the world's largest renewable energy companies warned on Wednesday about potential challenges for the U.S. offshore wind sector under President Donald Trump, noting possible delays in projects criticized by him.

The statements from Germany's RWE, the second-largest offshore project developer globally, and Siemens Energy, the largest manufacturer of offshore wind turbines, reflect a cautious outlook considering Trump's anticipated impact on renewable energy following his recent presidential victory.

RWE's finance chief, Michael Mueller, stated, "Given the results of the U.S. elections, we see higher risks than before for the timely implementation of offshore wind projects there. We have to expect that investments in our projects will come later than originally planned."

Christian Bruch, the CEO of Siemens Energy, also highlighted potential future issues regarding offshore permitting in the U.S., while noting that current projects already with permits would remain unaffected. He remarked, "Those would be projects slated for '29, '30, '31."

Siemens Energy has plans to supply U.S. offshore projects with a total capacity of 4.2 gigawatts (GW), whereas RWE is involved in the 3 GW Community Offshore Wind joint venture in the U.S. with Britain’s National Grid.

Project Delays

Mueller from RWE mentioned concerns regarding approval timelines, stating, "According to our current planning, approval is planned for 2026. And that is exactly the issue where we now have to watch closely to see whether this timeline can be maintained."

Investors are worried about Trump's potential effects on clean energy technologies, fearing he could reverse certain elements of President Joe Biden's Inflation Reduction Act, which promotes investments in solar, wind, and hydrogen.

Gilles Guibout, head of European equity strategies at AXA Investment Managers, commented, "In renewables, the U.S. don't want to do offshore wind anymore. This business might disappear. While before you had certain prospects, now, to some extent, those prospects are gone. The point is that there's a paradigm shift."

In response to this uncertain landscape for offshore and hydrogen investments, RWE announced a €1.5 billion ($1.59 billion) share buyback as a more prudent use of its funds. Earlier this year, Trump targeted offshore wind technology, causing shares of Orsted, the largest offshore wind project developer, to drop significantly.

($1 = 0.9413 euros)




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