US strikes $1.2bn deal to pay German firm RWE to halt offshore wind projects
The Trump administration has agreed to pay German energy giant RWE $1.2bn to terminate US offshore wind leases, with the firm shifting investments into gas and LNG.
Stock photo for illustration only, not from the actual event
- The US has agreed to pay $1.2bn to German firm RWE to scrap offshore wind farms
- RWE will reinvest $900m into an LNG export terminal project in Louisiana
- The company is relinquishing offshore leases off California, Louisiana, and New York Bight
- The move aligns with Donald Trump's aggressive push to promote fossil fuel industries
The United States government under President Donald Trump has continued its push to upend green energy policies by striking a landmark 1.2 billion dollar deal with German energy firm RWE, paying the company to walk away from its offshore wind developments.
RWE released an official statement explaining that after careful consideration, it was determined there is no path forward to permit these projects in the United States for the foreseeable future. Consequently, the firm agreed to relinquish its valuable seabed leases located off the coasts of California and Louisiana, as well as in the strategic New York Bight area.
Stock photo for illustration only, not from the actual event
As for the compensation funds, RWE announced plans to reinvest the massive sum directly into conventional gas projects. This includes channeling 900 million dollars, equivalent to roughly 669 million pounds, into a liquefied natural gas export terminal project situated in Louisiana.
"After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future"
RWE
US Interior Secretary Doug Burgum reinforced the administration's stance in a post on X, stating that American citizens deserve an energy system built on common sense rather than one dependent on costly subsidies. President Trump, a vocal advocate for fossil fuels, campaigned for the White House under the prominent banner of "drill, baby, drill" to boost domestic oil and gas production.
This buyout agreement represents a broader pattern by the Trump administration to dismantle renewable offshore wind infrastructure in favor of traditional hydrocarbons. Earlier in March 2026, the Department of the Interior reached a similar arrangement with France's TotalEnergies to halt wind farms in exchange for oil and gas ventures in the Gulf of Mexico, following a staggering 129 billion dollar pact with Duke Energy last month.
Source: BBC Business
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