Middle East conflict has exposed the clean energy sector's surprising vulnerability to fossil fuel disruptions. Indonesia's nickel refiners face government-mandated ore price increases while battling sulphuric acid shortages, as their industrial processes depend on sulphur from Gulf oil byproducts. Several refiners have already cut production due to supply squeezes.

The sulphur shortage creates a dangerous competition between clean energy production and food security, both needing the same chemical through disrupted supply chains. Manganese producers in Gabon and South Africa face potential 8% cost increases due to diesel dependency, risking profitability in markets with narrow margins. Aluminium prices have jumped 15% since conflict began, hitting solar module manufacturers hardest.

Rising input costs challenge non-Chinese manufacturers trying to compete in clean tech. Offshore wind projects face particular interest rate sensitivity. Despite these obstacles, the crisis accelerates the transition - IEA forecasts oil demand will fall 1.5mn barrels daily this quarter, while EU electric vehicle sales surged 66% in Germany. Clean energy manufacturers are weathering the storm.