Energy: Trump administration pays RWE $1.2 billion for wind power withdrawal

The US government has paid German energy giant RWE approximately $1.2 billion to withdraw from offshore wind projects in the United States, according to a statement released on Thursday. The company explained that the agreement was made with the US government. Essentially, this is a refund of lease costs for developing projects off the coasts of New York, California, and Louisiana.

The contracts relinquished were the result of years of planning, investment, and collaboration with federal agencies, RWE stated. However, there are currently no prospects for project approvals in the foreseeable future. The deal allows RWE to "concentrate resources on energy projects that can be advanced with the necessary certainty," the statement reads.

Specifically, RWE intends to invest about $900 million in acquiring a 16% indirect stake in a liquefied natural gas project in Louisiana, in addition to signing a contract for new gas turbine generation worth $300 million. Overall, the construction of at least 15 natural gas peaker plants in the US is planned. Whether RWE has also committed contractually to the investments is not mentioned in the statement.