The Trump administration is continuing its not-quite-quixotic quest to do away with offshore wind energy. A German wind company called RWE U.S. Offshore said Thursday that it has entered into a $1.22 billion settlement agreement with the Interior Department to give up plans to build wind farms off the coasts of New York, California and Louisiana. The wind power leases involved reportedly could have provided enough energy to power more than 5 million homes.
The agreement with RWE would reimburse the company for roughly the cost of leases it obtained under the Biden administration. It is the Trump administration’s fifth deal of its kind so far this year. In all, the administration has spent about $3.9 billion to get companies to terminate 12 offshore wind leases.
President Trump has long criticized wind energy and his administration has stopped federal permitting for offshore wind development.
“After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future,” RWE said in a statement, which noted that the company will continue to invest in U.S. projects involving natural gas but also remains focused on offshore wind development globally.
Critics of the Trump approach warn that it will result in higher energy costs for consumers in addition to the environmental impact of increased reliance on fossil fuels. Democratic Sen. Sheldon Whitehouse of Rhode Island told the Associated Press that the lease buybacks also serve to redirect taxpayer money to Trump’s energy industry donors. “There’s method here, and it’s a real scam,” Whitehouse said.
Seven Democratic-led states have sued over one of the earlier deals.
Interior Secretary Doug Burgum defended the new agreement. “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 in a statement. “We welcome RWE’s agreement and voluntary investment in projects that strengthen our nation's energy security, provide dependable baseload power and help keep electricity affordable for hardworking Americans today while supporting our country's long-term energy future.”