US strikes $1.2B deal to pay German firm to halt offshore wind projects
German energy firm RWE has agreed to a $1.2 billion payout to abandon offshore wind projects in the US. The company plans to reinvest these funds into conventional gas and LNG export projects, aligning with the Trump administration's fossil-fuel-focused energy policy.
Why it matters
This deal marks a significant shift in US energy policy, signaling a move away from offshore wind development toward traditional fossil fuel infrastructure.
Share Save Add as preferred on Google Rorey Bosotti Getty Images German energy company RWE has said it will abandon its offshore wind projects in the US after reaching a $1.2bn (£892m) payout deal with President Donald Trump's Department of the Interior (DoI).
RWE said that it will now reinvest the sum into conventional gas projects, including $900m (£669m) in a liquefied natural gas (LNG) export terminal project in 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 in a statement.
RWE said it has agreed to relinquish its leases off the California and Louisiana coasts as well as in the New York Bight.
Overall, the German firm plans to invest approximately €17bn (£14.5bn; $19.6bn) in the US over the next six years "to grow its generation capacity".
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