German energy giant RWE has withdrawn from all of its planned offshore wind developments in the United States after securing a compensation agreement worth $1.2 billion with the administration of President Donald Trump through the US Department of the Interior (DoI).
The company announced that the funds will be redirected toward traditional energy ventures, including a $900 million investment in a liquefied natural gas (LNG) export facility in Louisiana.
In a statement, RWE explained that prolonged regulatory uncertainty left no realistic opportunity for the offshore wind projects to proceed, prompting the decision to discontinue them.
As part of the arrangement, the company will surrender its offshore lease holdings located off the coasts of California, Louisiana and the New York Bight.
Despite ending its wind ambitions, RWE said it remains committed to expanding its presence in the US energy market, outlining plans to invest approximately €17 billion over the next six years to increase electricity generation capacity.
US Interior Secretary Doug Burgum welcomed the agreement, describing it as a move toward what he called a more practical and reliable energy strategy.
He argued that the country should prioritise energy sources that do not rely heavily on government financial support and said the investment would enhance national energy security.
The latest agreement reflects the Trump administration’s continued effort to shift federal energy policy away from offshore wind development and toward fossil fuel production.
Throughout his political career, President Donald Trump has repeatedly criticised wind turbines, describing them as unattractive, environmentally harmful and economically ineffective.
Since returning to office, President Trump has pledged to strengthen the oil and gas industry under his long-standing “drill, baby, drill” agenda.
He has consistently vowed to block offshore wind expansion, recently stating that nations depending on wind energy place themselves at a competitive disadvantage.
Earlier this year, the administration reached a comparable agreement with French energy company TotalEnergies, which ended its US offshore wind projects and instead committed resources to a liquefied natural gas facility in Texas and additional conventional oil production in the Gulf of Mexico.
Last month, Duke Energy also concluded a separate deal valued at $129 million, relinquishing its offshore wind lease in the Carolina Long Bay region in exchange for redirecting investment under the administration’s revised energy policy.
By: Magdalene Agyeiwaa Sarpong