Meeting the new energy reality while boosting economic growth

The global energy transition is facing a critical trilemma, balancing energy security, affordability and sustainability. In a world shaped by poly-crises, the question we must ask ourselves is: How can the energy transition spark economic growth while addressing global challenges? 

Investing in clean energy is investing in economic prosperity 

Due to geopolitical tensions, economic shifts and lack of regulatory certainty the energy transition has reached a critical juncture. As a result, strategically important first-of-a-kind (FOAK) projects face challenging business cases, leading to a slowdown in projects reaching final investment decision (FID). To move forward, we must recognize that the energy transition presents a significant opportunity to drive economic growth, job creation, competitiveness, technological innovation and energy security on a global scale. 

The business case for clean energy investment  

The solutions to decarbonize and improve efficiencies in energy-intensive industries —such as steel, cement and long-distance transportation — are available and scalable today. However, large-scale deployment requires new business and partnership models as well as financing mechanisms, and bringing pioneers together to form new, forward-thinking coalitions. It also requires de-risking technologies and projects through pilots and ongoing testing.    

If we succeed with that, the energy transition can help boost economic growth: 

• Creating jobs at scale: Clean energy projects can generate millions of jobs worldwide. According to the Hydrogen Council, the global hydrogen economy alone is expected to create 20-25 million jobs by 20501. 

• Attracting investments and strengthening local economies: According to the International Renewable Energy Agency (IRENA), clean energy projects attract foreign capital, improve tax revenue and diversify economies. Fossil-fuel producers are leveraging renewable hydrogen production to transform their energy sector, creating export opportunities and enhancing economic and energy resilience. Montana Renewables is a successful example of how you can revamp a retired fossil fuel unit to a renewable one, maintaining jobs, while creating additional revenues for local farmers. 

• Transforming industries through innovation: Innovation in clean energy strengthens global competitiveness. For instance, Topsoe’s involvement in Project SkyPower is accelerating e-SAF (sustainable aviation fuel) production in Europe – opening new export opportunities for innovative technologies.  Similarly, our collaboration with Vestas and Skovgaard Energy to launch the first-ever green ammonia plant in Ramme, Northwest Jutland, Denmark, showcases how renewable energy can be directly integrated into ammonia production. This approach  accounts for fluctuations in power generation, thus offering a  cost-effective solution for producing green ammonia. 

• Maintaining global competitiveness: Regions that fail to invest in clean energy risk losing entire industries to those that move faster in scaling up technologies. Industrial competitiveness depends on securing cost-effective, local and sustainable energy sources. Alternative energy solutions, such as green hydrogen, often come at a higher price, which can deter investors focused on short-term returns. However, the premium cost can also be viewed as an insurance against future price volatility, energy supply risks and industrial decline. Just as companies assess geopolitical risks in their financial models, clean energy investments can be viewed as a safeguard for long-term stability and competitiveness. 

• New export opportunities: Renewable fuel production enables lower-income countries to shift from exporting raw materials to exporting high-value energy products, fostering industrial development and improving economic conditions.  For example, biofuels derived from agricultural waste or residues can create new revenue streams for farming communities while positioning these countries as suppliers of sustainable energy solutions. Additionally, nations with abundant renewable energy resources, such as solar and wind, can leverage green hydrogen and its derivatives as key export commodities - helping to build global clean energy trade while driving local economic growth. In India, for example, Topsoe is partnering with Hygenco to develop a green ammonia plant in Odisha, utilizing its dynamic ammonia technology to convert green hydrogen into ammonia – and enabling the country to export high-value sustainable energy.  
  
  

Topsoe’s role in boosting economic growth  

At Topsoe, we believe that helping energy-intensive industries to decarbonize and become more efficient is central to building a resilient global economy. Our scalable solutions, such as advanced ammonia synthesis technologies and Solid Oxide Electrolyzer Cell technology for green hydrogen production, empower countries to leverage their renewable resources for localized production. This approach enhances energy resilience, creates new revenue streams, and supports industrial development. 

A case on sustainable aviation fuel production: Project SkyPower 

Topsoe is part of this CEO led initiative to accelerate the production of sustainable aviation fuel (e-SAF). This project will help position Europe as a leader in clean aviation fuel technology and could secure millions of jobs within the aviation industry. They estimate that e-SAF could unlock a EUR 350+ billion global market opportunity and save 400 million tonnes of CO2e annually by 2050, while increasing the EU’s energy resilience. 

Beyond its direct impact, e-SAF drives advancements in carbon capture and power-to-X technologies, creating spillover benefits that strengthen Europe’s global competitiveness. 

Looking ahead 

As the world confronts the complexities of the energy transition, the path forward demands innovation, unwavering collaboration, and scalable solutions. At Topsoe, we are committed to driving this transformation – delivering proven technologies that enable industries to transition toward net-zero while fueling innovation, economic prosperity, and energy security along the way.