European Hydrogen Projects on the Rise Amid Uncertainty in U.S. Markets
Key Ideas
  • European hydrogen firm H2Apex facing uncertainty due to U.S. tariffs on its German project in Lubmin, leading to a shift towards European suppliers and investors.
  • Investors and companies are increasingly turning to Europe for hydrogen projects, drawn by stability amid erratic U.S. tariff policies and political interventions.
  • European equity funds have seen a significant increase in investments while outflows from the U.S. have doubled, highlighting investor confidence in European markets.
  • ECB President Christine Lagarde notes the value and confidence investors see in Europe, with a shift in focus away from the U.S. markets.
The CEO of Luxembourg-based hydrogen firm H2Apex, Peter Roessner, is experiencing the impact of Donald Trump's trade war, as U.S. tariff risks have disrupted the company's 200 million euro project in Lubmin, Germany. Roessner emphasized the growing focus of investors in the hydrogen sector on the European market, attributing this shift to the uncertainty and planning insecurity in the USA. The European market is seen as a stable alternative amidst the unpredictable trade environment under the Trump administration. Investors and companies are increasingly turning to Europe for hydrogen projects due to the infrastructure-led spending push and relative stability in the region. This shift has been further fueled by Trump's unpredictable tariff threats and executive orders, causing a sense of instability in the U.S. market. With a looming July 9 deadline for a trade deal and the threat of 50% tariffs on all EU goods, investors have started diverting their investments towards Europe. Data from LSEG's Lipper Funds shows a notable increase in investments in European equity funds, while outflows from the U.S. market have more than doubled. This trend showcases the confidence and value investors place in European markets. The market dynamics have led to a weak market debut of Holcim's North American spin-off Amrize, signaling a shift in focus away from the U.S. markets. European Central Bank President Christine Lagarde has acknowledged the shift towards Europe, highlighting the attractiveness of the region for investors seeking stability and growth opportunities.
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