Renewable energy giants reject Trump’s anti-wind policies

Renewable energy giants appear to be relatively optimistic about the US president Donald Trumpanti-wind policies, describing the process of replacing fossil fuels with electric-powered products as “absolutely unstoppable”.

Trump, who promised a new “golden age” for America in his inaugural address on Monday, he was quick to take aim at low carbon energy initiatives.

ua independent executive orderAs widely expected, the president temporarily suspended new or renewed leases for offshore and onshore wind projects and halted leasing of wind projects on the outer continental shelf.

“We’re not going to do the wind thing. Big ugly windmills, they’re destroying your neighborhood,” Trump told supporters at Washington’s Capital One Area on Monday. He previously described wind turbines as an economic and environmental “disaster”.

The measures were part of a much broader energy offensive designed to “unleash” but the boom in oil and gas production. These included declaring a national energy emergency, promoting fossil fuel drilling in Alaska, and signing an executive order to withdraw the US from the famous Paris Agreement.

Joe Kaeser, Chairman of the Supervisory Board Siemens Energyone of the world’s biggest renewable energy players, seemed unfazed by Trump’s sweeping energy agenda. In fact, Kaeser considered the policies a “small plus” for the German energy technology group.

Shares of Siemens Energy jumped more than 8% on Wednesday morning, hitting a new 52-week high.

“We have to see what’s behind all the executive orders and policies. So far, I believe there are many areas where Siemens Energy actually has a big benefit,” Kaeser told CNBC’s Dan Murphy at the World Economic Forum’s (WEF) annual meeting in Davos. . , Switzerland on Tuesday.

There will be uncertainty for low-carbon energy sectors such as onshore and offshore wind, Kaeser said, before adding that Siemens Energy was unlikely to be directly affected by Trump’s measures. That’s partly because roughly 80% of companies in the wind farm market are in Europe, Kaeser said.

“So I believe it doesn’t move the needle. I’m much more concerned about European economies and how they deal with a very powerful nation, with a very powerful concept. We may like it or we may not, because it has some nationalist stuff, but if we’re looking at it from the perspective of the American people, we better get something going,” Kaeser said.

In addition to onshore and offshore wind farms, Kaeser said Siemens Energy is well positioned to take advantage of the “boom” in the electrification market.

“Think about data centers, artificial intelligence, now we have wait times for large gas turbines. In fact, customers are coming in and saying, hey, can I make a reservation and I’ll pay you for the reservation? Just think about it. It hasn’t happened in a long time,” he said. Kaeser.

“I believe that the era of electrification has just begun. Whether it’s gas turbines, wind, solar or something else, we have it all, and ultimately the customers decide. And one thing that I believe should not be underestimated, the White House is not buying much [but] the customer does,” he added.

The Spanish renewable energy giant Iberdrola he was similarly optimistic about the path to full electrification, describing the transition away from fossil fuels as “absolutely unstoppable”.

“We see that we are probably at the best moment for electrification,” Ignacio Galán, executive chairman of Iberdrola, told CNBC at WEF on Tuesday.

Galán cited increasing global demand for electric-powered data centers, low-emission vehicles, as well as cooling and heating applications.

“All these things require more electricity 24 hours a day. Our business in the United States is mostly in this area, which is grids … and the regulation is up to the state government, so I don’t think it really affects it at all,” he said. Galán.

“Depending on the legislation, we will invest more or less in another part of our business,” he added, referring to Trump’s energy policy.

“We are very, very optimistic about the United States and the future,” Galán said.

Denmark’s Orsted, which recently announced a about 1.7 billion dollars the cost of impairment charges for US projects fell 4.4% on Wednesday morning, extending steep losses from the previous session.

The fast-growing offshore wind sector has seen a turbulent time in recent years, hampered by rising costs, supply chain disruption and higher interest rates.

Artem Abramov, head of new energy research at Rystad Energy, said Trump’s energy agenda essentially means the likelihood of any new US offshore development has dropped to zero – at least for now.

“The U.S. currently has about 2.4 gigawatts (GW) of advanced-stage offshore wind developments that have made a final investment decision and are under construction, which are unlikely to be affected by the order,” Abramov said in a research note published on Tuesday. .

“Moderate risk amid an unfavorable investment climate is present for 10.5 GW of projects that have secured the necessary permits but have not made investment decisions,” Abramov said.

“The remaining 25 GW of early-stage projects are unlikely to see progress under the current administration,” he added.

— CNBC’s Spencer Kimball contributed to this report.