USA: The Trump administration has agreed to pay close to $1 B to French energy company TotalEnergies to abandon planned offshore wind farms in the Atlantic and shift focus to fossil fuel projects in the United States.
The decision follows earlier moves to block renewable energy permits, which had already stalled several offshore wind developments. This latest step goes further, ensuring projects cannot resume even under a future administration that might support them.
The payment will reimburse TotalEnergies for federal leases it bought during the Biden administration for two wind projects off New York and North Carolina. Together, they could have produced over 4 GW of electricity.
Instead, the company plans to invest in a liquefied natural gas plant in Texas, along with oil drilling in the Gulf of Mexico and shale operations elsewhere in the US. CEO Patrick Pouyanné said the shift reflects the country’s current priorities and will help supply LNG to Europe.
Interior Secretary Doug Burgum defended the move, describing offshore wind as costly and unreliable. While offshore wind does have higher upfront costs, it does not rely on fuel and offers stable pricing compared to oil and gas.
Critics argue the decision may worsen energy shortages, especially as demand rises from data centres and electrification. Former Interior official Elizabeth Klein warned it could push up energy prices, particularly along the East Coast.
Industry groups also criticised the deal, saying removing renewable projects will leave consumers facing higher bills.
It remains unclear whether similar agreements will follow, though other companies have indicated they may seek refunds for stalled projects.
Source: CNN
