World attraction to US Energy Transition funds – Receiving more than giving?

Between January 2018 and July 2023, there were about 278 new investment project announcements exceeding $100 Mn in value each for North America relating to key Energy Transition assets. This represents about $370 Bn in total investment value. These include specifically hydrogen, ammonia, solar power, wind power, electric vehicles, and batteries. While most of these are still in planning stages, many are likely yet to be announced.

Interestingly, North American players represent only 55% of key project participants in their own region.

Electric vehicle (EV) and battery announcements dominate with $216 Bn in new announcements and North American participants making up 53% of the pool. While most projects are by one owner, many have two or three partners, varying in country origin.

North American participants will be leading primarily in hydrogen and ammonia, as they typically have advantage in scale operations. These account for $130 Bn in new announcements.

Solar and wind projects account for $24 Bn in new announcements, with North American players accounting for 37% of the total participant number.

In any case, North America is attracting global investment which will bring resources, technologies, and other competencies to the market. It also currently the preferred investment region for most manufacturing industries worldwide, mainly due to relative geopolitical situations (see my previous posts).

Besides uncertainties of the future of subsides, questions remain on the dominant course for vehicles (EVs, hydrogen fuel, hybrids, etc.) Alternative sources of power, such as modular nuclear or nuclear fusion will also be a factor in the longer term.

Producers must be open to collaboration and should have a thorough understanding the complexities and costs of Energy Transition pathways which are still in flux.

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Opinions are my own and not the necessarily the views of my employer.

Source: Based on Worley Consulting Market Services analysis of GlobalData Construction