Between sunlight and sales: Market access constraints and conceptualizing the renewables pull effect

The study investigates the renewables pull effect in energy-intensive industries, analyzing whether access to abundant renewable energy resources determines location choices for green production facilities. 173 announced green production projects in ammonia, direct-reduced iron and methanol are examined by analyzing 401 statements derived out of 2751 lines of press releases, using qualitative content analysis. The findings confirm that the availability of renewable energy resources is a key determinant for all three products and particularly for ammonia. However, sales opportunities also play a crucial role, challenging previous research that has paid limited attention to market accessibility. Moreover, this study empirically assesses the relative importance of competing location criteria, offering a more comprehensive framework for green site selection. Geographic and sectoral differences further shape decisions, with infrastructure, regulations, and socio-economic criteria playing vital roles. Regions like Northern and Southern Europe, North Africa, the Middle East, Australia and parts of South America and the United States are emerging as prime locations. By demonstrating the real-world application of the renewables pull effect and highlighting industry-specific distinctions, the study advances theoretical understanding and provides practical insights for policymakers and energy-intensive industries. Future research should go beyond this study by integrating managers' and experts' perceptions to ensure a holistic understanding of the renewables pull effect and its impact on green industrial development.