Joe Kaeser, chairman of the supervisory board of Siemens Energy, expressed confidence that President Donald Trump's energy policies would not directly impact Siemens Energy. Despite Trump's declaration of a national energy emergency and his promotion of fossil fuel drilling in Alaska, Siemens Energy's operations in the United States, primarily focused on networks, remain largely unaffected.
"I believe the electrification age has just begun." – Joe Kaeser
While Trump's energy agenda poses challenges for the offshore and onshore wind sectors, Siemens Energy is strategically positioned to capitalize on the growing electrification market. The company's shares surged more than 8% on Wednesday morning, reaching a new 52-week high, indicating investor optimism about its future prospects.
"That's partly because roughly 80% of the firm's wind market is in Europe," Kaeser said.
Iberdrola, a Spanish renewable energy giant, shares similar optimism about the electrification journey. Ignacio Galán, executive chairman of Iberdrola, described the transition away from fossil fuels as "absolutely unstoppable." Despite the recent turbulence in the offshore wind sector caused by rising costs and supply chain disruptions, Iberdrola remains bullish about the road to full electrification.
Artem Abramov, head of new energies research at Rystad Energy, noted that Trump's energy policies have significantly reduced the likelihood of new offshore developments in the U.S. to zero. This has created uncertainty for low-carbon energy sectors, including both onshore and offshore wind. Nonetheless, Siemens Energy is well-positioned to benefit from the growth of the wind industry in Europe.
"Beyond onshore and offshore wind, Kaeser said Siemens Energy was well positioned to capitalize from a 'booming' electrification market." – Joe Kaeser
Despite Trump's stance against wind energy, Kaeser emphasized that Siemens Energy offers a diverse range of energy solutions, allowing customers to choose based on their needs.
"Whether that's gas turbines or wind or solar or something else, we've got everything, and the customers decide in the end." – Joe Kaeser
Trump's executive order to withdraw the U.S. from the Paris Agreement further underscores his administration's focus on fossil fuels. However, this shift may not significantly impact Siemens Energy's business in the U.S., which is primarily concentrated in areas not directly affected by Trump's policies.
"And one thing I believe one should not underestimate, the White House is not buying much [but] the customer does." – Joe Kaeser
The rapidly expanding electrification market presents lucrative opportunities for companies like Siemens Energy and Iberdrola. The transition towards renewable energy sources continues to gain momentum globally, driven by technological advancements and growing environmental awareness.
"I believe that doesn't move the needle. I'm much more worried about the European economies and how they deal with a very powerful nation, with a very powerful concept." – Joe Kaeser
While Trump's energy agenda may create roadblocks for certain sectors, global energy giants remain committed to advancing electrification and renewable energy initiatives. The push towards cleaner energy solutions is seen as inevitable by industry leaders who are prepared to navigate policy shifts and capitalize on emerging markets.