US government pays RWE $1.2B to cancel offshore wind projects
The Trump administration is paying German utility RWE $1.2 billion to abandon offshore wind farm leases off California, Louisiana and New York. Total payouts for 12 canceled leases now stand at nearly $3.93 billion.
The Trump administration has agreed to pay German energy company RWE $1.2 billion in exchange for canceling its offshore wind farm projects planned off the coasts of California, Louisiana and New York.
According to an RWE announcement, the company will redirect $900 million of that payment toward acquiring a small stake in a liquid natural gas export terminal in Louisiana. The remaining $300 million will go toward purchasing natural gas turbines to supply 15 peaking power plants across the country.
Lost generating capacity
Citing Heatmap News, the canceled New York wind farm alone would have been capable of generating more than 3 gigawatts of electricity. Peaking power plants, which the funds will now help build, are known to be among the most expensive and most polluting natural gas facilities to operate. Completion timing for the new plants remains uncertain, as there is currently a backlog for new gas turbines extending into the early 2030s.
RWE keeps investing in wind elsewhere
Despite exiting these US projects, RWE is not stepping back from offshore wind altogether. The company said it recently acquired 6.9 gigawatts of capacity through a UK auction.
With the RWE deal, the Trump administration has now paid a total of $3.93 billion to persuade developers to abandon 12 offshore wind leases.
