A divided energy future: Europe and the U.S pursue different industrial paths

Manufacturers on both sides of the Atlantic are moving in opposite directions. Europe, squeezed by high gas prices and energy-security concerns since the war in Ukraine, is accelerating electrification.

North America, with ample gas reserves, continues to rely heavily on it for industrial power.

Today, both regions use a similar share of electricity in manufacturing. By 2050, Europe’s share is projected to rise from 33 % to 48 %, while North America’s reaches only 34 %.

In contrast, gas use in European manufacturing is expected to fall from 28 % to 11 %, while North America’s remains stable near 46 %.

Each path carries risks. Europe faces grid costs and electricity-price volatility. North America could see its gas advantage shrink as LNG exports drive up domestic prices.

Ultimately, the question is who will be able to sustain affordable energy for competitive manufacturing in a divided energy future.

Source: Geoffroy Hureau, Cedigaz