Key facts
- The Trump administration will pay RWE $1.22 billion to cancel offshore wind leases in New York, California, and Louisiana.
- RWE will invest $900 million in a Louisiana LNG project and $300 million in natural gas turbine plants.
- This agreement is part of a broader strategy to discourage offshore wind development, with nearly $4 billion spent on similar buybacks.
- Interior Secretary Doug Burgum praised the deal for strengthening energy security and affordability.
- Critics have described the deals as costly and beneficial to fossil fuel interests.
The Trump administration has agreed to a $1.22 billion deal with German energy company RWE to cancel its offshore wind leases off the coasts of New York, California, and Louisiana. 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 agreement, RWE will invest $900 million in a Louisiana liquefied natural gas (LNG) project and $300 million in 15 natural gas peaker plants. This latest settlement brings the total amount spent by the administration on similar buybacks to nearly $4 billion. Interior Secretary Doug Burgum hailed the deal, emphasizing energy security and affordability, while critics argue it benefits fossil fuel donors and raises energy bills. Previous agreements include deals with TotalEnergies and Invenergy.