Wartsila CEO says US energy transition will continue despite Trump
HELSINKI, Feb 5 (Reuters) - The transition from fossil fuels to renewable energy will continue in the U.S. despite President Donald Trump's tariffs due to renewable energy's cheaper pricing, the CEO of power plant maker Wartsila (WRT1V.HE), opens new tab said on Wednesday.
President Trump has laid out a sweeping plan to maximize oil and gas production, including by declaring a national energy emergency to speed permitting, and withdrawing the U.S. from an international pact to fight climate change.
But Wartsila CEO Hakan Agnevall said the changes proposed by the Trump administration would not stop the energy transition from happening in the U.S.
Renewables are growing "quicker than ever in the U.S.", Agnevall told Reuters. "We foresee that this trend will still continue, because it's the cheapest source of energy," he said, referring to wind and solar power.
He said while offshore wind projects may face restrictions, onshore wind and solar will go ahead.
Around 40% of the installed power generation base in Texas, known as the oil and gas state, is renewable, he said, adding it remained one of Wartsila's hottest markets for new power plants that use both renewable and conventional power sources to maintain steady supply.
Finland-based Wartsila, which makes ship engines in addition to power plants, saw its fourth-quarter orders beat analysts' expectations earlier on Wednesday and said it expects demand to grow for both its marine and energy businesses this year.
The company books a little less than 30% of its sales from the Americas. Agnevall admitted the energy business could be hit by possible U.S. tariffs against the EU but added the impact was hard to predict.
With demand growing for data centres in the U.S. driven by the increased use of artificial intelligence, Agnevall said power grid capacity had reached its limits and that data centre developers were looking into building their own power plants.
"This could evolve into interesting business for us," he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NBC News
28 minutes ago
- NBC News
Trump tariffs may remain in effect while appeals proceed, federal appeals court rules
A federal appeals court allowed President Donald Trump's most sweeping tariffs to remain in effect on Tuesday while it reviews a lower court decision blocking them on grounds that Trump had exceeded his authority by imposing them. The decision by the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., means Trump may continue to enforce, for now, his 'Liberation Day' tariffs on imports from most U.S. trading partners, as well as a separate set of tariffs levied on Canada, China and Mexico. The appeals court has yet to rule on whether the tariffs are permissible under an emergency economic powers act that Trump cited to justify them, but it allowed the tariffs to remain in place while the appeals play out. The Federal Circuit said the litigation raised issues of 'exceptional importance' warranting the court to take the rare step of having the 11-member court hear the appeal, rather than have it go before a three-judge panel first. It scheduled arguments for July 31. The tariffs, used by Trump as negotiating leverage with U.S. trading partners, and their on-again, off-again nature have shocked markets and whipsawed companies of all sizes as they seek to manage supply chains, production, staffing and prices. The ruling has no impact on other tariffs levied under more traditional legal authority, such as tariffs on steel and aluminum imports. A three-judge panel of the U.S. Court of International Trade ruled on May 28 that the Constitution gave Congress, not the president, the power to levy taxes and tariffs, and that the president had exceeded his authority by invoking the International Emergency Economic Powers Act, a law intended to address 'unusual and extraordinary' threats during national emergencies. The Trump administration quickly appealed the ruling, and the Federal Circuit in Washington put the lower court decision on hold the next day while it considered whether to impose a longer-term pause. The ruling came in a pair of lawsuits, one filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the duties and the other by 12 states. Trump has claimed broad authority to set tariffs under IEEPA. The 1977 law has historically been used to impose sanctions on enemies of the U.S. or freeze their assets. Trump is the first president to use it to impose tariffs. Trump has said that the tariffs imposed in February on Canada, China and Mexico were to fight illegal fentanyl trafficking at U.S. borders, denied by the three countries, and that the across-the-board tariffs on all U.S. trading partners imposed in April were a response to the U.S. trade deficit. The states and small businesses had argued the tariffs were not a legal or appropriate way to address those matters, and the small businesses argued that the decades-long U.S. practice of buying more goods than it exports does not qualify as an emergency that would trigger IEEPA. At least five other court cases have challenged the tariffs justified under the emergency economic powers act, including other small businesses and the state of California. One of those cases, in federal court in Washington, D.C., also resulted in an initial ruling against the tariffs, and no court has yet backed the unlimited emergency tariff authority Trump has claimed.
Edinburgh Reporter
an hour ago
- Edinburgh Reporter
First Minister meeting with EU Ambassador to the UK
First Minister John Swinney will meet European Union Ambassador to the United Kingdom Pedro Serrano at Bute House on Wednesday to discuss the challenges and opportunities to arise from the recent deal between the UK and the EU. They will be joined by the Slovenian Ambassador Sanja Štiglic and Bulgarian Ambassador Tihomir Stoytchev, as part of a delegation to Scotland. Later today the First Minister will also meet the Minister-President of Flanders at an event to celebrate 25 years of Flemish trade and investment in Scotland. The First Minister views both engagements as opportunities to reinforce the strong relationship that exists between Scotland and the EU. He said: 'The European Union is one of our most important economic and security partners. While the deal struck on the 19 May represents long-overdue progress in rebuilding our relationship, no agreement can deliver the economic, social and security benefits we lost with Brexit in 2020. 'That is why I firmly believe Scotland's best future lies as an independent country within the EU. More than ever, the current uncertain economic and geopolitical environment reinforces the importance of Scotland having the security, stability and opportunity that comes with EU membership. 'In the meantime we will continue to engage with nations and regions across Europe to maximise opportunities through trade, investment, innovation and academia. As we enter the next phase of negotiations, we stand ready to be closely involved as the UK Government develops its future priorities for working with the EU.' Bute House PHOTO © 2024 The Edinburgh Reporter Like this: Like Related
Reuters
2 hours ago
- Reuters
Japan wholesale inflation slows in May
TOKYO, June 11 (Reuters) - Japan's wholesale prices rose 3.2% in May from a year earlier, data showed on Wednesday, slowing from April in a sign falling import costs for raw materials were easing price pressures for companies. The rise in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, compared with a median market forecast for a 3.5% annual increase and follows a revised 4.1% increase in April. The yen-based import price index fell 10.3% in May from a year earlier after a revised 7.3% drop in April, the data showed, indicating the currency's rebound was pushing down the cost of raw material imports.
