RWE agrees $1.22bn deal to abandon US offshore wind leases
The German energy company RWE has reached a $1.22bn deal with the US government to relinquish its offshore wind leases and instead redirect funds towards fossil fuel investments, according to a statement from the company and the US Interior Department. The agreement is the latest in a series of similar settlements between the Trump administration and energy companies as the president continues his push against offshore wind.
RWE said on Thursday that it had agreed to give up its offshore wind leases off the coasts of New York, California and Louisiana. “After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future,” the company said, referring to leases it initially secured with a “long-term commitment to develop offshore wind capacity”. RWE paid $1.1bn for its New York lease in a 2022 auction held by the Biden administration, while its leases in Louisiana and California cost a combined $163m, as reported by Reuters.
The settlement resolves RWE US Offshore’s legal claims and provides $1.22bn in settlement funds, the company said, allowing it to “direct resources toward energy projects that can be advanced with certainty.” As part of the agreement, RWE will spend $900m to acquire a 16% stake in an unnamed Louisiana liquefied natural gas (LNG) project, with settlement proceeds used to fund construction of the terminal. The company has also signed a $300m turbine reservation agreement to develop a pipeline of 15 natural gas peaker plants across the country.
Interior Secretary Doug Burgum hailed the deal, saying in a statement on X: “We welcome RWE’s agreement and voluntary investment in projects that strengthen our nation’s energy security.” He added that Americans deserve an energy system built on common sense and not one dependent on “costly subsidies”.
The agreement marks the fifth deal the Trump administration has struck with energy companies, offering payouts in exchange for abandoning renewable energy projects and redirecting investment towards fossil fuels, according to reports. Overall, the administration has now spent almost $4bn of taxpayer money on halting offshore wind projects, reported The Guardian.
The German firm plans to invest approximately €17bn (£14.5bn; $19.6bn) in the US over the next six years “to grow its generation capacity”. The company’s broader strategy includes expanding its US footprint beyond the wind projects it is abandoning.
Trump, a vocal supporter of the fossil fuel industry, has sought to boost government support for fossil fuels after campaigning for the presidency under the slogan “drill, baby, drill”. Days after returning to office, he said “we’re not going to do the wind thing” and called turbines “big, ugly windmills” that were dangerous to wildlife.
In March 2026, the Interior Department reached a deal with TotalEnergies ending that French company’s offshore wind projects in the US. Instead, TotalEnergies agreed to reroute investment to build an LNG plant in Texas and develop “upstream conventional oil” in the Gulf of Mexico. The administration signed a similar $129m (£96m) agreement with Charlotte-based Duke Energy last month, terminating that company’s offshore wind lease in the Carolina Long Bay area.
Companies have cited permitting difficulties and uncertain regulatory conditions as reasons for abandoning offshore wind projects, while the administration has framed the settlements as a win for energy independence and affordability.