Trump administration to pay RWE $1.22 billion to cancel offshore wind leases
The US government will pay German energy company RWE $1.22 billion to cancel offshore wind leases off New York, California and Louisiana. RWE has agreed to shift its US investments toward natural gas projects.
Washington has agreed to pay German utility RWE $1.22 billion (€1.06 billion) to terminate its offshore wind lease agreements in the United States. The settlement, announced by RWE on Thursday, covers areas off the coasts of New York, California and Louisiana. The company said it concluded that no viable path exists to obtain permits for these projects in the U.S. in the foreseeable future.
The deal is part of a broader push by the Trump administration to curb wind energy development. President Donald Trump, who has long criticised wind power, has described turbines as unsightly and called wind projects an economic and environmental disaster. He has previously stated he did not want a single turbine erected during his tenure.
This is not the first such arrangement. In March, French energy major TotalEnergies reached a similar agreement with the U.S. Department of the Interior to relinquish leases at Carolina Long Bay and New York Bight. Washington agreed to pay TotalEnergies roughly $1 billion, and the company said it would channel investment into natural gas instead.
RWE also plans to shift focus to gas. The company announced investments in U.S. gas projects to meet growing electricity demand, including $900 million to acquire a 16% stake in a liquefied natural gas facility in Louisiana. RWE Americas said it intends to invest around €17 billion in the U.S. over the next six years, expanding its generation capacity from about 13 GW across 27 states to 22 GW by 2031.
Interior Secretary Doug Burgum welcomed the agreement. In a post on X, he said the deal strengthens U.S. energy security, provides reliable baseload power and helps keep electricity affordable. He also framed it as supporting the country's long-term energy future.
