The U.S. Department of the Interior has finalized a settlement with the German energy company RWE to cancel offshore wind leases previously held off the coasts of New York, California, and Louisiana. The agreement, which will see the U.S. government pay the firm $1.22 billion—equivalent to approximately €1.06 billion—comes as the administration moves to halt various wind energy projects across the country.
In a formal statement released on Thursday, RWE confirmed the termination of the leases, noting that the company concluded there was no viable path forward to permit these specific projects in the United States for the foreseeable future. This decision aligns with the ongoing policy agenda of U.S. President Donald Trump, who has frequently criticized wind energy. President Trump has publicly labeled wind turbines as an "economic and environmental disaster" and has previously stated his opposition to the construction of such projects during his tenure.
RWE is now pivoting its strategy to focus on natural gas projects in the U.S. to address rising energy demand. As part of this transition, the company plans to invest $900 million to acquire a 16% stake in a liquified natural gas project located in Louisiana. Furthermore, RWE Americas has outlined a broader investment plan of approximately €17 billion over the next six years. This initiative aims to increase the company's U.S. generation capacity from its current 13 GW across 27 states to 22 GW by 2031.
This settlement follows a similar move earlier this year involving the French energy giant TotalEnergies. In March, the U.S. Interior Department reached an agreement to cut TotalEnergies' leases at New York Bight and Carolina Long Bay. That deal included a payment of roughly $1 billion to the French firm, which also committed to reallocating its investments toward natural gas projects.
