The EIC’s Bankable Energies conference wrapped up in London two weeks ago now, and, if you missed it, here’s the scoop from a keynote presentation delivered by our Director of Market Intelligence, Neil Golding: How do we turn Europe’s ambitious climate goals into actual, bankable projects?
Using hard data from EICDataStream, Neil painted a clear, and sometimes gritty, picture of Europe’s energy transition. Yet there is no lack of good news, as we learn that, despite challenges, cleantech is still booming.
80% of Europe’s energy projects are now in cleantech: onshore wind, solar, hydrogen, carbon capture. Europe has $1.35 trillion lined up by 2030 in capital expenditure across all energies. Offshore wind alone could see $274 billion, despite being just 4.5% of total projects.
Floating wind is also attracting significant interest, with 73.9GW of capacity planned by 2035. But these projects aren’t without hurdles…
Offshore wind projects are getting delayed or scrapped due to inflation, supply chain logjams, and permitting delays.
Hydrogen is on a slow burn despite 366 projects in the works. Only 40 of these projects have reached final investment decision (FID). The UK’s 10GW-by-2030 target now appears unlikely without faster action.
Carbon capture suffers a similar dilemma. 183 projects are proposed, but just 8 have broken ground. The EU’s 50-million-tonne storage target by 2030 needs a reality check.
“It’s not about ideas, it’s about action,” said Neil. Only 15% of offshore wind projects and 4% of carbon capture ventures have reached FID. For cleantech to scale, investors need certainty.
That means:
- More grants and funding schemes needed such as EU Innovation Fund and the UK’s Hydrogen Allocation Round.
- Grids need urgent upgrades. Europe is pouring $217 billion into T&D, but supply chain delays are biting. One example is High Voltage Direct Current (HVDC) cables which are in short supply versus demand, delaying grid capacity upgrades.
- Small Modular Nuclear Reactors, or SMRs, are gaining traction in Scandinavia, but politics and costs still loom large.
Neil’s outlook wasn’t all warnings, however. Optimism cut through: BBVA’s $732 billion sustainability pledge, Repsol’s €800 million waste-to-methanol project, and the EU’s push to expand carbon capture beyond the North Sea show momentum is building.
The energy transition isn’t a sprint. It’s a relay. Governments, financiers, and innovators need to pass the baton faster. As Neil put it: “Projects don’t decarbonize the planet. Built projects do.”
Get in touch with Neil (neil.golding@the-eic.com) to learn more about EIC’s global energy data and analysis offerings. If you're an EIC member or aspiring to join and need support in getting your message across to policymakers and decision-makers worldwide, contact CEO Stuart R Broadley (stuart.broadley@the-eic.com) and Head of External Affairs Rebecca Groundwater (rebecca.groundwater@the-eic.com).