US strikes $1.2bn deal to pay German firm to halt offshore wind projects

German energy firm RWE has reached a $1.2 billion settlement with the US Department of the Interior (DoI) to halt its offshore wind projects in the country, according to wire material. The company will now reinvest this sum into conventional gas initiatives, such as a $900 million liquefied natural gas (LNG) export terminal project in Louisiana.

RWE stated, "After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future." The German firm has relinquished its leases off California and Louisiana coasts, as well as in the New York Bight.

Interior Secretary Doug Burgum expressed his support for the deal, emphasizing that Americans deserve an energy system built on common sense rather than one dependent on costly subsidies. He welcomed RWE's agreement and voluntary investment in projects that strengthen national energy security. The settlement is part of the Trump administration's ongoing efforts to halt offshore wind projects and boost government support for fossil fuels.

Trump, a strong advocate for the fossil fuel industry, campaigned on the slogan "drill, baby, drill" and expressed disdain for offshore wind projects as "big, ugly windmills" that pose a threat to wildlife.

This is not the only recent deal reached by the Trump administration. In March 2026, the Department of the Interior agreed to terminate TotalEnergies' offshore wind projects in the US and redirect investment to build an LNG plant in Texas and develop conventional oil in the Gulf of Mexico. Additionally, in March 2026, the administration signed a $129 billion deal with Duke Energy, allowing the company to terminate its offshore wind lease in the Carolina Long Bay area in exchange for the funding.