Rystad Energy: US cleantech energy market to continue to thrive

The US cleantech and renewable energy sectors will continue to thrive irrespective of the outcome of the US presidential election, according to analysis by Rystad Energy.

Noting that the Presidential election could have significant implications for global energy dynamics, Rystad Energy’s analysis suggests that by 2030, states like Oklahoma, Iowa, Florida and Texas will account for 57% of all US battery cell manufacturing capacity and 59% of solar PV cell and module production, as well as 95% of all hydrogen production capacity and 83% of carbon capture capacity.

Substantial investments in manufacturing and other infrastructure in these states are driving a surge in job creation, according to Rystad Energy. This underscores the transformative impact that cleantech has had on infrastructure and employment, particularly in swing states. The continued investment in cleantech industries highlights the economic benefits of renewable energy and underscores the impact of the 2022 Inflation Reduction Act (IRA), Rystad Energy said.

“Cleantech is increasingly becoming a bipartisan success story in the US. This is underscored by our analysis, which shows the bulk of cleantech projects, from solar and batteries to hydrogen and carbon capture, are located in Republican strongholds,” Lars Nitter Havro, Head of Energy Macro Research at Rystad Energy, said in the report.

“The tangible economic benefits are driving widespread support, ensuring that the economic momentum behind cleantech is likely to remain robust even under a potential Republican presidency. These sectors are poised to continue expanding, whether we see a red or blue outcome in November,” he added.

Rystad Energy noted that more onshore wind capacity was added during President Trump’s term than under President Biden so far, suggesting that the wind industry may be more affected by economic factors, such as interest rates, than by the political climate in the Oval Office.

A new administration in  the Oval Office will inherit the IRA and numerous pre-approved clean energy projects, and past presidencies have indicated a persistent momentum in US decarbonisation efforts, according to Rystad Energy. However, differing priorities could lead to legislative gridlock, impacting energy projects and possibly prompting states to develop varied energy policies, with some focusing on renewables and others on fossil fuels, the consultancy noted.