EU considers buying more US gas to appease Trump

The bloc’s energy commissioner stated that the EU would seek more gas from the US to appease US leader Donald Trump, while also cutting red tape to boost renewable energy capacity this year.

The European Commission expects a record level of renewable energy capacity to be installed in the EU in 2025. However, Energy Commissioner Dan Jørgensen said that the green move does not preclude potential commitments to buy more US liquefied natural gas (LNG) in response to Trump’s tariffs.

The US President granted a 90-day reprieve and on Wednesday, dropped most of the tariffs shortly after they took effect. Trump suggested to the EU on Monday that it buy about $350 billion of US energy to reduce the trade deficit, while also rejecting Brussels’ offer to strike a “zero-for-zero” tariff deal for industrial goods and cars.

The US is already the bloc’s largest supplier of liquefied natural gas, accounting for 45% of imports worth about $13 billion in 2024.

“There is potential for us to buy more LNG from the US, but of course it has to be on conditions that are also compatible with our [green] transition,” Jørgensen said, adding that he had conveyed this to US Energy Secretary Chris Wright.

Still, according to the Financial Times (FT), there is little Brussels can do other than encourage companies to sign contracts. The European Commission expects a record 89 GW of renewable energy capacity to be installed in the EU in 2025, including 19 GW of additional wind power and 70 GW of solar power.

This has occurred despite global economic turmoil and the sector’s complaints about long waits for permits and inadequate grid connections.

Jørgensen said renewable energy is “essential” to lower high energy prices and end the bloc’s dependence on Russian fossil fuel imports.

The Commissioner claimed, “We are all aware that the high energy prices we are paying are not sustainable for global competition in the future. Since 2022, we have spent more money on importing fossil fuels from Russia than we have given in aid to Ukraine.”

Jørgensen will present figures on renewable energy use at an industry conference in Copenhagen on Thursday, aimed at encouraging offshore wind investors struggling under the impact of Trump’s fossil fuel agenda to move projects forward.

Rasmus Errboe, CEO of Ørsted, the world’s largest offshore wind energy developer, warned on Wednesday that the European wind energy industry is at risk of a “downward spiral” due to high costs and supply chain disruptions.

Trade body WindEurope expects new wind energy capacity in Europe to increase by 34% this year compared to 2024, but said new installations were lower than expected last year, with progress hampered by ongoing permitting issues and bottlenecks for grid connections.

The solar energy industry has also warned that annual capacity growth fell from 53% in 2023 to 4% last year for similar reasons.

Ørsted is one of several European companies whose US projects will be affected by Trump’s tariffs on aluminum and steel due to their reliance on components imported from Europe.

According to industry body SolarPower Europe, the EU solar energy sector’s exports to the US are relatively small, but the impact could be significant for companies involved in exporting some key components.

Jørgensen said the EU could benefit from the turmoil caused by the tariffs and its economic repercussions, adding, “I think this crisis in the world economy right now will make it even more attractive for companies to seek safe havens where there is predictability, and Europe is such a place.”

He said the bloc would not back down from its green agenda but wanted to simplify the rules governing renewable energy. The Commissioner said the average waiting time for permits should be reduced from five to seven years to just six months, adding that “nature conservation directives are also part of the problem” and need to be addressed.