Focus on USA | Trump 2.0 What can we expect?
A recent report from GlobalData (Modern Power Systems parent company), The US Power Market Outlook to 2035, Update 2024 – Market Trends, Regulations, and Competitive Landscape, summarises potential changes in US energy and climate policy that can be anticipated under the new Trump administration as follows: Renewables reversal. The new administration plans to halt all offshore wind energy projects. Federal permits for new and ongoing offshore wind developments may be revoked, posing a significant challenge to the industry’s growth. There is likely to be a significant pivot away from federal leadership on renewable energy. As federal support wanes, renewable energy projects may rely more on state policies and private investments to fill the gap.
The Inflation Reduction Act (IRA), a cornerstone of Biden’s clean energy agenda, is expected to face restructuring or even partial repeal. End of subsidies for renewables. The Trump administration is expected to reduce or eliminate federal subsidies for wind, solar, and other renewable energy projects. With reduced federal support, the renewable energy sector may increasingly rely on state-level initiatives and private investments to sustain growth. This marks a sharp departure from the previous administration’s extensive incentives for clean energy projects. Shift in long-term goals. Trump 2.0 energy policies will emphasise boosting domestic energy production to achieve energy independence, prioritising ‘traditional’ indigenous energy sources such as natural gas, oil, and coal, alongside support for advanced nuclear (eg, small modular reactors) and geothermal technologies. Critical minerals. Trump’s administration is expected to continue policies aimed at reducing
Locations of Regional Clean Hydrogen Hubs, as proposed under the Biden administration (source: US Department of Energy, Office of Clean Energy Demonstrations)
dependence on China by promoting domestic mining and processing of critical minerals. Fossil fuels favoured. Trump’s administration favours fossil fuels, easing regulatory burdens on oil, gas, and coal. This shift could slow the progress of federal climate initiatives.
Hydrogen hubs
The future of the $7 billion allocated for the Department of Energy’s Regional Clean Hydrogen Hub Program is also uncertain, with possible delays or reallocation of funding. The hydrogen hubs, as proposed under the Biden administration, are intended to help accelerate the commercial scale deployment of low cost, clean hydrogen, with clean hydrogen seen as a flexible energy
carrier that can be produced from a diverse mix of domestic energy resources, including renewables, nuclear, and fossil resources with carbon capture. The hydrogen hubs plan envisages networks of hydrogen producers, consumers, and local connective infrastructure.
As recently as November 2024, in the final few weeks of the Biden administration, the Department of Energy announced up to $2.2 billion in award commitments for two further Regional Clean Hydrogen Hubs (H2Hubs), $1.2 billion to Gulf Coast H2Hub, led by HyVelocity (HyV), and $1 billion to Midwest H2Hub, led by the Midwest Alliance for Clean Hydrogen LLC (MachH2). These awards follow three previously awarded H2Hubs: Appalachian Hydrogen Hub (ARCH2); California
The concept of a Regional Clean Hydrogen Hub (source: US Department of Energy, Office of Clean Energy Demonstrations) 18 | January/February 2025|
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