Trump administration to pay German firm $1.22bn to cut offshore wind leases
Summary
The U.S. government, under President Trump’s administration, has agreed to pay the German energy company RWE $1.22 billion to give up its offshore wind energy leases. In return, RWE will invest in fossil fuel projects like liquified natural gas and natural gas power plants, shifting away from renewable energy development.Key Facts
- RWE will give up offshore wind leases off New York, California, and Louisiana.
- The deal is worth $1.22 billion and settles legal claims between RWE and the U.S. government.
- RWE plans to invest $900 million in a Louisiana liquified natural gas project and $300 million in 15 natural gas power plants nationwide.
- RWE initially paid $1.1 billion for the New York lease and $163 million for the other two leases in 2022.
- This is the fifth deal by the Trump administration where payments were made to cancel renewable energy projects.
- Total U.S. spending on cancelling offshore wind projects under this administration is nearly $4 billion.
- Earlier agreements included deals with TotalEnergies and Duke Energy, totaling $2.7 billion.
- Several states have sued the administration over these deals, calling them illegal.
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