Europe’s path to energy transition: Why the US development offers new opportunities

The energy transition is one of Europe’s most ambitious projects, with the goal of becoming climate-neutral by 2050. During President Trump’s term in office in the US, climate protection was put on the back burner in favor of fossil fuels. Now, President Trump has declared a “national energy emergency” to promote fossil fuels and freeze funding for the Inflation Reduction Act (IRA). This also creates new opportunities for Europe!

The EU has its sights firmly set on climate change.

A look at Trump’s policy shows how strongly political decisions can influence energy policy. While the US under Trump scaled back climate protection measures in favor of fossil fuels, Europe continued to pursue long-term strategies and ambitious climate targets. This approach has made Europe a pioneer in the use of renewable energies. In 2022, the share of renewable energy in electricity consumption rose to 37%, with wind and solar energy leading the way. Companies such as Ørsted and Iberdrola, some of the largest renewable energy developers in Europe, are driving massive projects such as offshore wind farms in the North Sea and large solar farms in Southern Europe. These projects are central to reducing dependence on fossil fuels.

Obstacles due to dependency and infrastructure

Despite its successes, Europe faces significant challenges. The expansion of renewable energies requires enormous amounts of raw materials such as lithium and rare earth elements, which are mainly imported from China. This geopolitical dependency poses risks to the security of supply and could drive up the costs of important technologies such as batteries and solar modules. Furthermore, many European countries lack the infrastructure needed to efficiently store and distribute renewable energy. Overburdened power grids and inadequate energy storage exacerbate these problems and make urgent investments in modernization necessary.

However, developments in the U.S. under the current administration offer opportunities. The Inflation Reduction Act has invested billions in research and development, leading to technological advances such as more efficient batteries and green hydrogen. These innovations could accelerate Europe’s energy transition if made accessible through transatlantic partnerships. Although Europe has so far taken a leading role, global competition shows that close cooperation with the US could help set standards and achieve common climate goals.

Innovations made in the USA also help Europe

US companies play a central role in the introduction of innovative technologies in Europe that contribute to more efficient use of energy and lower CO₂ emissions. Hewlett Packard Enterprise (HPE) has established itself as a pioneer in this area. Together with the Danish company Danfoss, HPE has developed a revolutionary technology: water-cooled data centers. These data centers use water to dissipate the heat generated during data processing. Instead of wasting this heat, it is reused in industrial processes or municipal district heating networks. This concept not only saves energy, but also significantly reduces operating costs.

HPE has already successfully implemented this technology in several European countries, including Germany and Denmark. The potential of these systems is particularly evident in cities with existing district heating networks, such as Copenhagen or Munich. Studies estimate that by utilizing the waste heat from such data centers, energy consumption can be reduced by up to 40%. In addition to the environmental friendliness of this technology, HPE plans to establish similar models in the United States to increase energy efficiency there.

Progress in the transportation sector through DAF and Paccar

Another example of American innovation in Europe is the Dutch truck manufacturer DAF, which belongs to the US company Paccar. DAF is investing heavily in the development of hydrogen technology and fuel cell systems. These technologies enable emission-free transportation and are a promising alternative to diesel trucks. DAF has already launched the first models of hydrogen trucks in Europe that have been specially designed for inner-city goods transport.

Tesla: driving the energy transition in Europe

Elon Musk’s company is not only considered a trendsetter for advanced technology in the United States. It is also making its mark in Germany. The Gigafactory in Grünheide not only produces electric vehicles and thus the basis for the mobility of the future. With solar panels on the roofs and the use of recycling technologies for batteries, Tesla aims to significantly reduce the carbon footprint of the production processes.

In addition to vehicles, Tesla also offers energy storage solutions that are already in use in Europe. Tesla’s “Megapack” batteries are used in large-scale projects such as the wind farm in Dorset, UK, to efficiently store renewable energy and feed it into the grid when needed.

In Spain, Tesla is working with local partners to integrate solar panels and Powerwall storage systems into homes and businesses. This combination of renewable energy and storage not only reduces energy costs, but also makes users less dependent on rising electricity prices.