The German energy company RWE has reached a $1.22 billion settlement with the US government to give up its offshore wind leases off the coasts of New York, California, and Louisiana. Announced on Thursday, the deal is the fifth agreement made by the Donald Trump administration with energy companies, offering payouts in exchange for abandoning renewable energy projects and shifting investments toward fossil fuels.

RWE initially secured these leases with a long-term commitment to develop offshore wind capacity. However, the company stated, “After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future.”

RWE paid $1.1 billion for its New York lease in a 2022 auction held by the Joe Biden administration, while its Louisiana and California leases cost a combined $163 million, according to Reuters. As part of the settlement, RWE will invest $900 million to acquire a 16% stake in an unnamed Louisiana liquified natural gas (LNG) project.

This agreement brings the total taxpayer money spent on terminating offshore wind projects to nearly $4 billion. The administration has also allocated up to $1.1 billion to support coal, a move critics argue benefits political allies while raising energy costs for working Americans, especially amid rising fuel prices linked to the US conflict with Iran.

Sources also report environmental violations involving illegal discharges of pollutants into waterways and failures in regulatory reporting by terminal managers.

Sources

Guardian US