A major offshore wind developer is walking away from several US projects after reaching a multi-billion-dollar agreement with the Trump administration. Instead of building wind farms, the company is now shifting its focus to natural gas.
German energy company RWE has agreed to abandon its offshore wind projects in the United States after reaching a $1.2 billion deal with President Donald Trump’s Department of the Interior.
The agreement will see RWE give up its offshore wind leases off the coasts of California, Louisiana and the New York Bight. In return, the company said it will redirect its investment into conventional energy projects, including $900 million for a liquefied natural gas (LNG) export terminal in Louisiana.
Explaining the decision, RWE said the future of its wind projects had become uncertain.
“After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future,” the company said.
Despite ending its offshore wind plans, RWE said it still intends to invest about €17 billion in the United States over the next six years to expand its power generation business.
The Trump administration welcomed the agreement, describing it as a win for America’s energy strategy.
“We welcome RWE’s agreement and voluntary investment in projects that strengthen our nation’s energy security,” Interior Secretary Doug Burgum said.
He added that Americans deserve an energy system based on “common sense” rather than one that relies on “costly subsidies.”
The deal is the latest in a series of agreements aimed at reducing offshore wind development under President Trump, who has repeatedly voiced his support for oil and gas production. Since returning to office, his administration has encouraged companies to shift investment away from offshore wind and into fossil fuel projects.
Earlier this year, similar agreements were reached with French energy company TotalEnergies and US-based Duke Energy, both of which agreed to end offshore wind developments in exchange for investing in conventional energy.
For now, the latest deal shows how quickly America’s energy priorities are changing, with offshore wind giving way to natural gas and other traditional fuel projects under the Trump administration.
