The Trump administration will reimburse TotalEnergies nearly $1 billion to abandon two major offshore wind projects. These projects targeted the coasts of New York and North Carolina. The payment covers federal leases acquired during the previous administration for sites capable of generating over 4 GW of electricity.
TotalEnergies will redirect this capital toward a liquefied natural gas (LNG) plant in Texas. The company also plans to expand oil and gas drilling in the Gulf of Mexico. Interior Secretary Doug Burgum defended the decision, calling offshore wind expensive, unreliable, and environmentally disruptive. He further characterized the sector as being subsidy-dependent.
Renewable energy industry groups argue the move will increase consumer energy prices. They claim the decision represents a significant setback for U.S. energy transition goals. This agreement marks a strategic escalation in federal efforts to dismantle the renewable energy sector.