US renewable energy project cargo demand declines as cancellations exceed new investments, shifting focus to oil and gas developments.
US renewable energy project cargo demand is weakening as cancellations outpace new investments, signaling a shift toward oil and gas developments, reported London's S&P Global.
Companies scrapped nearly US$35 billion in clean energy projects in 2025, according to Washington-based research group E2. For the first time in three years, more investment left the US than entered, with manufacturing facilities accounting for most losses. EV and battery/storage projects saw over US$21 billion abandoned in each segment.
Felix Schoeller, chief commercial officer of AAL Shipping, stated that wind energy cargo volumes have fallen sharply in North America as offshore and onshore projects were downsized. AAL, which transports wind components globally, noted a rising demand instead for battery energy storage systems used in oil and gas facilities.
The Trump administration cut nearly $8 billion in clean energy funding last year, expanded fossil fuel leasing, and reinstated full tax write-offs for oil and gas assets. These policy changes have accelerated the shift in project cargo momentum toward carbon-based power generation.
December marked one of the largest withdrawal periods on record, with eight projects worth $5.1 billion canceled. South Korea's SK On abandoned a $2.8 billion EV project in Tennessee, while Ford scrapped a $1.5 billion plant in Ohio. New announcements in December totaled only $238 million.
E2 warned that canceled US projects are increasingly redirected abroad, where competitors offer clearer incentives and more predictable investment environments. This reallocation could reshape global project cargo flows away from the US.
