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U.S. pays $3.93B to scrap offshore wind leases as RWE takes $1.2B deal
The Trump administration has spent nearly $4 billion to cancel 12 offshore wind leases, with the latest agreement paying German utility RWE $1.2 billion to abandon projects off California, Louisiana and New York.
The administration’s latest cancellation payment, disclosed this week, is part of a broader push to unwind federal offshore wind approvals. RWE’s lease covered three proposed wind farms, including a New York project that could have generated more than 3 gigawatts.
Under the deal, RWE will redirect $900 million toward acquiring a minority stake in a Louisiana liquefied natural gas export terminal. The remaining $300 million is earmarked for natural gas turbines intended to power 15 peaking power plants nationwide—facilities known for high operating costs and emissions.
Delivery timelines for those turbines remain uncertain, as manufacturers face a backlog extending into the early 2030s. The administration has now paid a total of $3.93 billion to persuade developers to relinquish 12 offshore wind leases.
Despite the U.S. pullback, RWE said it is not retreating from offshore wind globally. The company recently secured 6.9 gigawatts of capacity in the U.K.’s latest auction, signaling continued investment in European wind energy.