Key facts
- The Trump administration agreed to pay RWE $1.22 billion to cancel offshore wind leases.
- RWE will relinquish leases off the coasts of California, Louisiana, and in the New York Bight.
- RWE plans to reinvest the funds into conventional energy projects, including approximately $900 million for a liquefied natural gas (LNG) export terminal in Louisiana and $300 million for 15 natural gas peaker plants.
- The total expenditure on similar buyback deals has reached nearly $4 billion.
- Interior Secretary Doug Burgum stated the deal strengthens energy security and affordability.
The Trump administration has reached a $1.22 billion agreement with German energy company RWE to terminate its offshore wind projects in the United States. RWE stated that it determined there was no foreseeable path to permit these projects in the U.S. for the foreseeable future. As part of the deal, RWE plans to reinvest the funds into conventional energy projects, including approximately $900 million for a liquefied natural gas (LNG) export terminal in Louisiana and $300 million for 15 natural gas peaker plants. This settlement follows similar agreements made by the administration with TotalEnergies and Duke Energy, bringing the total expenditure on such buybacks to nearly $4 billion. Interior Secretary Doug Burgum praised the deal, citing benefits to energy security and affordability, while critics have voiced concerns about the cost and the redirection of funds towards fossil fuel interests.