Welcome to the last Energy Source newsletter of 2025, straight from New York.
BP’s CEO, Murray Auchincloss, has announced his departure after under two years, with Meg O’Neill from Woodside Energy stepping in. The oil giant faced challenges, including a low share price and management issues, but their stock has shown some recovery.
In this edition, we explore how American hydrogen equipment manufacturers are increasingly looking to Europe as the US market grows more uncertain. We will return to your inbox on January 6. Happy holidays!
Can US Green Hydrogen Equipment Manufacturers Compete in Europe?
The US green hydrogen sector is facing difficulties after crucial tax credits were cut earlier than expected under the Trump administration. As a result, some American manufacturers are now focusing on Europe, where there is more support for green technologies. However, they are up against tough competition from Chinese and European companies.
Europe has set ambitious emission reduction goals, aiming for a 90% decrease by 2040, using renewable fuels made from green hydrogen.
In June, the US announced plans to phase out a significant production tax credit for hydrogen projects by the end of 2027. This puts over 75% of planned projects at risk, according to Wood Mackenzie.
With the US market becoming less favorable, Europe has emerged as a key area for American hydrogen companies, especially those making electrolysers—devices that produce hydrogen fuel.
Raffi Garabedian, CEO of Electric Hydrogen, commented, “The US market is not really a market for us. Our commercial focus has shifted to the rest of the world.”
Similarly, Plug Power has halted plans for three new projects aimed at increasing their renewable fuel output. Instead, they are focusing on exporting electrolysers, particularly to Europe. The company recently signed a letter of intent to install a 5-megawatt electrolyser in France and is already working on another in the Netherlands that is set to be operational by 2026.
Cummins, another US manufacturer exporting electrolysers to Europe, opened a 500-megawatt plant in Spain last year. However, they are reviewing their electrolyser business due to weaker demand.
Plug Power is also facing financial hurdles. The company has struggled to turn a profit, and in its latest quarter, costs surpassed revenue by over 60%. New CEO Jose Luis Crespo stressed the importance of financial stability for customers purchasing electrolysers, as these are long-term investments.
While US manufacturers are looking to compete, they face strong competition from China, which leads the world in hydrogen electrolyser capacity. However, Chinese products often face issues with efficiency and reliability when deployed outside of their home country—making US models generally more durable despite similar operational features.
As the hydrogen market cools off globally, many projects in Europe, including those by major companies like Repsol and BP, have been paused or canceled due to lower demand and rising costs. Some European electrolyser makers have also stopped production.
Currently, US manufacturers have limited options and must compete in a market that may not improve soon. As Wood Mackenzie’s Bridget van Dorsten puts it, “US electrolyser manufacturers have no choice but to compete; the domestic market is dwindling.”
Job Moves
- Talen Energy has appointed Cole Muller as the new CFO, taking over from Terry Nutt.
- Dolphin Drilling has brought in Michael Boyd as its new CEO.
- FTC Solar has welcomed Anthony Carroll to its board of directors.
Power Points
- US energy investment firm Kimmeridge has made a $6 billion offer to acquire gas driller Ascent Resources, which is embroiled in a legal dispute.
- Norway’s Equinor has been hit with a €60 million fine for alleged environmental violations involving inadequate maintenance.
- Global coal demand is projected to hit a record high in 2025, reflecting ongoing challenges in transitioning away from fossil fuels.
Stay tuned for more updates in the new year!