US Government
RWE has reached a $1.22bn deal with the US government to relinquish its offshore wind leases and instead redirect funds towards fossil fuel investments.
The agreement marks the fifth deal the Donald Trump administration has struck with energy companies, offering payouts in exchange for abandoning renewable energy projects and redirecting investment towards fossil fuels.
This latest deal takes it to almost $4bn of taxpayer money spent on killing offshore wind projects.
Announcing the deal with the US interior department on Thursday, RWE said it had agreed to give up its offshore wind leases off the coasts of New York, California and Louisiana.
“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, referring to the leases it initially secured with a “long-term commitment to develop offshore wind capacity”.
RWE paid $1.1bn for its New York lease in a 2022 auction held by the Joe Biden administration, while its leases in Louisiana and California cost a combined $163m, Reuters reports.
“The settlement resolves RWE US Offshore’s legal claims and provides $1.22 billion in settlement funds,” RWE continued, adding that the deal would allow it to “direct resources toward energy projects that can be advanced with certainty.”
As part of the agreement, RWE will spend $900m to acquire a 16% stake in an unnamed Louisiana liquified natural gas (LNG) project.
RWE has also signed a $300m turbine reservation agreement under which it will develop a pipeline of 15 natural gas peaker plants across the country.
