RWE settles with U.S. government to abandon offshore wind leases for $1.2 billion
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German energy firm RWE U.S. Offshore agreed to relinquish offshore wind leases off New York, California and Louisiana in a $1.22 billion settlement, part of a broader Trump administration effort to buy back such leases.
RWE U.S. Offshore announced a settlement with the U.S. government that will see the company give up offshore wind leases off New York, California and Louisiana in exchange for $1.22 billion. The agreement adds to a series of lease buybacks that have cost the administration nearly $4 billion in total.
RWE said the leases represented years of planning and investment but that there was no viable path to obtain permits in the near term. The relinquished leases could have supported about seven gigawatts of capacity, enough for more than five million homes, and RWE now holds no U.S. offshore wind leases.
The company also disclosed a $900 million investment in a liquefied natural gas project in Louisiana and $300 million for natural-gas turbines, noting it is developing 15 natural-gas projects across the United States.
"Americans deserve an energy system built on common sense, not one dependent on costly subsidies or technologies that can’t meet our country’s current demand," Interior Secretary Doug Burgum said, adding that he welcomed the agreement and the shift toward projects he described as strengthening energy security and keeping electricity affordable.
Senator Sheldon Whitehouse (D-RI) criticized the buybacks, saying they effectively pay companies to abandon clean-energy projects and could raise costs for consumers.
The settlement follows earlier deals in which TotalEnergies, Golden State Wind, Bluepoint Wind and Invenergy received reimbursements ranging from $765 million to nearly $1 billion in return for ending offshore wind leases and redirecting the funds toward fossil-fuel investments.