Solutex, a prominent player in the fatty acids market, reports that energy costs in Europe can be three times higher than in other regions, further disadvantaging European industries.

A recent report by PwC reveals that over 40% of Europe's industrial electricity bill is due to taxes, contrasting sharply with less than 10% in the United States, which significantly raises energy costs for European companies.

The report highlights that EU companies are currently paying about 65% more for electricity than they did in 2019, and their costs are double those of their U.S. counterparts.

Experts point out that Europe's reliance on imported fossil fuels, due to a lack of domestic oil and gas resources, exacerbates these high energy costs.

This disparity in energy pricing, driven by high taxes and regulatory costs, poses a risk of decreased investments and potential relocations of industries to countries with more favorable energy conditions.

In Germany, a survey indicates that 37% of companies are contemplating reducing production or relocating due to soaring energy prices, particularly in energy-intensive sectors.

Companies like Tubos Reunidos in Spain are facing electricity costs that are 50% higher than their French counterparts, who benefit from lower nuclear energy rates, while gas costs are four times higher than those at their Texas facility.

The situation is underscored by the example of Alcoa's plant in San Cribao, Galicia, which remained idle for two years due to escalating electricity costs, highlighting the urgent need for affordable energy.

While there are increasing calls to reduce taxes and fees to alleviate energy costs, experts warn that such measures must not compromise the transition to renewable energy sources, which is essential for long-term sustainability.

As discussions around energy prices intensify, they are further complicated by rising protectionism and trade tensions, particularly those stemming from the Trump administration.