U.S. Compensates TotalEnergies to Relinquish Offshore Wind Leases

The U.S. Department of the Interior announced an agreement with French energy company TotalEnergies to relinquish two offshore wind leases off the coasts of North Carolina and New York. In return, the U.S. government will compensate TotalEnergies with $1 billion, which the company plans to invest in fossil fuel projects. Interior Secretary Doug Burgum stated that the agreement ensures that "the American people will no longer pay for ideological subsidies that benefited only the unreliable and costly offshore wind industry."

Environmental groups criticized the deal, with Lena Moffitt, executive director of Evergreen Action, describing it as a "billion-dollar bribe" to halt clean energy initiatives. New York Governor Kathy Hochul labeled the move an "outrageous abuse of taxpayer dollars," while North Carolina Governor Josh Stein called it "a terrible deal for the people of North Carolina and our country."

TotalEnergies CEO Patrick Pouyanné stated that the refunded lease fees will finance the construction of a liquefied natural gas plant in Texas and the development of its oil and gas activities, considering it a "more efficient use of capital" in the U.S.