US to Pay $1.22 Billion to RWE for Canceling Offshore Wind Leases

Washington will fork out $1.22 billion (€1.06 billion) to German energy firm RWE to cancel the company's offshore wind leases. RWE said on Thursday that it had reached a settlement with the US Department of the Interior (DOI) to relinquish 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 U.S. for the foreseeable future," the company said in a statement.

US President Donald Trump, long a critic of wind energy, has embarked on a campaign to halt a number of such projects across the US. Trump has repeatedly dismissed wind turbines as unsightly and has labelled them an "economic and environmental disaster." He previously said that he did not want "even one" built during his time in office.

In March, French energy giant TotalEnergies announced that it had also reached an agreement with the US Interior Department to cut its leases at Carolina Long Bay and New York Bight. The DOI said it would pay TotalEnergies around $1 billion as part of the agreement, which would see the French firm instead invest in natural gas projects.

RWE said it would also be investing in gas projects across the US "to meet rapidly growing energy demand." That includes a $900 million investment to acquire a 16% stake in a Louisiana liquified natural gas project.

"RWE Americas has announced plans to invest approximately €17 billion in the U.S. over the next six years to grow its generation capacity from approximately 13 GW across 27 states today to 22 GW by 2031," the company added.

Doug Burgum, the US Interior Secretary, has praised the deal, writing on X: "We welcome RWE’s agreement and voluntary investment in projects that strengthen our nation's energy security, provide dependable baseload power and help keep electricity affordable for hardworking Americans today while supporting our country's long-term energy future."