US strikes $1.2bn deal to pay German firm to halt offshore wind projects
The RWE payout is the latest in a string of deals cancelling wind energy projects, a power source long derided by Trump.
The United States has finalized a $1.2 billion agreement to compensate German energy firm RWE for discontinuing its offshore wind power initiatives.
RWE announced its decision to withdraw from its U.S. offshore wind ventures following a $1.2 billion (£892 million) settlement with the Department of the Interior (DoI), under President Donald Trump's administration. The German company stated its intention to reallocate these funds into conventional gas projects, including a $900 million (£669 million) investment in a liquefied natural gas (LNG) export terminal in Louisiana.
In a statement, RWE explained, "After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future." The company confirmed it has consented to surrender its leases situated off the coasts of California and Louisiana, as well as within the New York Bight.
RWE's broader investment strategy includes approximately €17 billion (£14.5 billion; $19.6 billion) in the U.S. over the next six years, aimed at expanding its generation capacity.
Interior Secretary Doug Burgum, in a post on X, emphasized that Americans deserve an energy system founded on common sense, not one reliant on "costly subsidies." He added, "We welcome RWE's agreement and voluntary investment in projects that strengthen our nation's energy security."
This agreement marks the latest in a series of deals struck by the Trump administration this year, as President Trump, a vocal proponent of the fossil fuel industry, continues his efforts to halt offshore wind projects. Trump has actively sought to increase government backing for fossil fuels, having campaigned for the presidency with the slogan "drill, baby, drill." Shortly after returning to office, he declared, "we're not going to do the wind thing," referring to wind turbines as "big, ugly windmills" that pose a threat to wildlife.
In March 2026, the DoI reached a similar agreement with TotalEnergies, ending the French company's offshore wind projects in the U.S. TotalEnergies subsequently agreed to redirect its investment towards constructing an LNG plant in Texas and developing "upstream conventional oil" in the Gulf of Mexico. Last month, the administration signed a comparable $129 billion (£96 billion) agreement with Charlotte-based Duke Energy, in exchange for the termination of the company's offshore wind lease in the Carolina Long Bay area.