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EU US
Killian Staines
31 January 2023
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European industry upbeat on Inflation Reduction Act

Companies on the continent have taken a leading position along the value chain for potential US projects, while the EU readies a ramp-up in policy support

The EU has complained that the US Inflation Reduction Act (IRA) puts European firms at a disadvantage and could divert investment across the Atlantic, but many in the industry are far more upbeat, especially as the EU prepares its own measures in response. Rheanna Johnston, policy adviser at energy transition thinktank E3G, is sceptical that the IRA could be harmful to the EU hydrogen industry. “The main barrier for hydrogen production in the EU are high electricity costs, and here the critical piece is to expand renewable energy,” Johnston says. “Regarding hydrogen technology, EU companies have a leading position along the whole value chain and have already committed to increasing manufactu

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