German energy company RWE has agreed to abandon its offshore wind projects in the United States following a $1.2 billion payout deal with President Donald Trump’s Department of the Interior.
According to RWE’s statement, the company will relinquish its leases off the California and Louisiana coasts as well as in the New York Bight. The firm said it determined “there is no path forward to permit these projects in the US for the foreseeable future.”
RWE plans to reinvest the $1.2 billion settlement into conventional energy projects. The company will allocate $900 million toward a liquefied natural gas (LNG) export terminal project in Louisiana. Overall, RWE intends to invest approximately €17 billion in the US over the next six years to expand its generation capacity, according to the company.
Interior Secretary Doug Burgum characterized the agreement as strengthening national energy security, stating that “Americans deserve an energy system built on common sense and not one dependent on ‘costly subsidies.’” The deal reflects the Trump administration’s broader effort to restrict offshore wind development while promoting fossil fuel investments.
This is the latest in a series of similar agreements the administration has reached this year. In March 2024, the Department of the Interior reached a deal with French company TotalEnergies to end its US offshore wind projects in exchange for the firm rerouting investments to build an LNG plant in Texas and develop upstream conventional oil in the Gulf of Mexico. Last month, the administration signed a $129 billion agreement with Charlotte-based Duke Energy to terminate the company’s offshore wind lease in the Carolina Long Bay area.
President Trump, during his campaign, called wind turbines “big, ugly windmills” and claimed they were dangerous to wildlife. Days after returning to office, he stated “we’re not going to do the wind thing.” The president has campaigned under the slogan “drill, baby, drill” and has positioned himself as a vocal supporter of the fossil fuel industry.
Key facts
- RWE will receive $1.2 billion to halt offshore wind projects off California, Louisiana, and in the New York Bight
- The company plans to reinvest $900 million in an LNG export terminal in Louisiana
- RWE intends to invest approximately €17 billion in the US over six years on other generation projects
- This is the third major deal the Trump administration has reached to terminate offshore wind projects this year