An offshore wind company said Thursday that it reached a $1.2 billion settlement with the Trump administration to walk away from projects under development off New York, California and Louisiana. This latest agreement brings the total amount spent on such settlements to nearly $4 billion.
RWE U.S. Offshore said its leases represented years of planning, investment and partnership with federal agencies, but it determined there was no path forward to permit the projects for the foreseeable future. In exchange for $1.22 billion, RWE is relinquishing the wind power leases that could have provided about 7 gigawatts of power, enough for more than 5 million homes. It does not have any remaining U.S. offshore wind leases.
President Donald Trump, who often talks about his hatred of wind power, has said his goal is to not let any “windmills” be built. The Republican administration has been buying back offshore wind leases from energy companies as it seeks to discourage the expansion of wind energy in favor of fossil fuels. Offshore wind produces electricity cleanly. Oil, coal and natural gas emit carbon pollution when burned.
RWE announced it is investing $900 million in a liquefied natural gas project in Louisiana and spending $300 million on natural gas turbines. The company, which is headquartered in Germany, is developing 15 natural gas projects across the U.S.
The administration adopted this strategy after federal courts thwarted Trump’s efforts to stop offshore wind development through executive action.
Interior Secretary Doug Burgum said Thursday that Americans “deserve an energy system built on common sense, not one dependent on costly subsidies or technologies that can’t meet our country’s current demand.” He said he welcomes RWE’s agreement and voluntary investment in projects that strengthen the nation’s energy security, provide dependable baseload power and help keep electricity affordable.
But Sen. Sheldon Whitehouse, D-R.I., said the lease buybacks are effectively bribing companies to step away from clean energy that can displace more expensive fossil fuel plants, which in turn will raise costs for consumers.
The Associated Press has the full story.
