● Covered by 3 sources · 3 reportsMedium impact2 negative1 neutral
US Pays RWE $1.2 Billion to Cancel Offshore Wind Projects, Funds Redirected to Gas
Key points
- US paid RWE $1.2 billion to cancel offshore wind leases.
- RWE will abandon projects in California, Louisiana, and New York Bight.
- RWE to invest $900 million in a Louisiana LNG export terminal.
- Remaining funds will purchase natural gas turbines for power plants.
- This is the fifth such deal by the current administration.
Offshore Wind Projects Canceled
The US Department of the Interior (DoI) has reached an agreement with German energy company RWE to cancel its offshore wind projects in the United States. The deal involves a $1.2 billion payment from the US government to RWE. The canceled projects were planned off the coasts of California, Louisiana, and in the New York Bight.
Funds Redirected to Fossil Fuels
Following the agreement, RWE announced plans to reinvest the $1.2 billion into conventional gas projects. Specifically, $900 million will be allocated to acquire a 16 percent stake in a liquefied natural gas (LNG) export terminal project in Louisiana, which is helmed by Australian company Woodside Energy. The remaining $300 million will be used to purchase natural gas turbines for 15 peaking power plants across the country, though a backlog for new turbines extends into the early 2030s.
Administration's Stance on Energy
Interior Secretary Doug Burgum stated that Americans deserve an energy system built on common sense, not one dependent on "costly subsidies," and welcomed RWE's agreement and investment in projects that strengthen national energy security. RWE indicated that it determined there was "no path forward to permit these projects in the US for the foreseeable future."
Broader Context of Cancellations
This agreement with RWE is the fifth such deal by the current administration to cancel green energy contracts. The Trump administration has now spent a total of $3.93 billion to abandon 12 offshore wind development leases, redirecting investments towards natural gas infrastructure. RWE, however, is continuing its offshore wind investments elsewhere, having bought 6.9 gigawatts of capacity in a recent UK auction.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
How outlets covered it
The Trump administration has paid German energy company RWE over $1.2 billion to cancel offshore wind leases near New York, California, and Louisiana. This agreement redirects funds from the Department of the Interior to fossil fuel investments, marking the fifth such deal by the administration to halt green energy projects.
The Trump administration paid German utility RWE $1.2 billion to cancel offshore wind farm leases in California, Louisiana, and New York. This payment contributes to a total of $3.93 billion spent by the administration to abandon 12 offshore wind development leases, shifting investments towards natural gas infrastructure.
The US Department of the Interior reached a $1.2 billion agreement with German energy company RWE to terminate its offshore wind projects in the US. RWE will reinvest the funds into conventional gas projects, including a liquefied natural gas (LNG) export terminal in Louisiana, marking a continued shift from offshore wind to fossil fuel investments under the current administration.