And yet, there is one “winner” from her energy crisis in Europe and it’s nothing but USA. With soaring energy prices, the steel, fertilizer and other industries driving Old Continent economic activity are shifting their operations to the US, where energy prices are more stable and there is generous government support. Given the high volatility in energy and supply chains, Washington has announced strong incentives for production and green energy, tipping the balance in favor of the US, especially in favor of the chemical, battery and energy-intensive industries in general. Although the United States is suffering from a high inflation, are facing supply chain challenges and there are fears of a slowdown in growth, the economy is posting a relatively strong recovery from the pandemic compared to China, which has been hit by lockdowns and Europe destabilized by war. In fact, according to a report in the US newspaper The Wall Street Journal, the new spending announced by Washington has made the country a more attractive investment destination.

For example, Danish-based Pandora and Germany’s Volkswagen have announced expansions to the US, and Tesla has suspended plans to make batteries in Germany to see if it falls under the US tax credit scheme. Of course, Europe remains an attractive investment destination for manufacturing, where a high level of know-how is required and where skilled workers are hired. Moreover, given the pent-up demand due to the pandemic, many businesses have passed on increased energy costs to consumers. The question is how long record high gas prices will last. If Europe fails to replace Russian natural gas, prices could remain high until at least 2024 and thus have a long-term impact on the manufacturing sector. “I think we’ll make it through two winters,” Stefan Borgas, CEO of refractory materials and systems maker RHI Magnesita, told the Wall Street Journal. But if Geria Epirus can’t find cheaper gas, or if it doesn’t step up renewables, then “companies will start looking elsewhere,” he added.

Washington has announced incentives for chemical companies, batteries, and energy-intensive businesses in general.

The Austrian company produces materials for use in industries that must withstand high temperatures, such as steel mills. Borgas is particularly bullish on steel demand in the US, where government stimulus has also boosted green energy prospects. Companies like RHI Magnesita see hydrogen as the “key” to replacing fossil fuels and reducing greenhouse gas emissions. Washington’s commitment to such projects and initiatives is expected to increase hydrogen production, which will drive down its price. Luxembourg-based steelmaker ArcelorMittal, which announced a few days ago that it was cutting production at its two plants in Germany, posted better-than-expected results from investments in Texas. This enterprise produces an iron ore product for steel production. This is “an area that offers highly competitive energy and ultimately competitive hydrogen,” CEO Aditya Mittal said in a press release.

However, energy producers in Europe may be struggling to remain competitive in the face of lower energy prices and environmental incentives for U.S. investment, said Svein Tore Holseter, chief executive of Norwegian fertilizer group Yara International. “As a result, some industries will permanently move to the other side of the Atlantic,” he concluded.