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

The German energy firm RWE has announced it will cease its offshore wind projects in the United States following a $1.2 billion (£892 million) payout agreement with President Donald Trump's Department of the Interior (DoI). RWE plans to redirect the substantial sum towards conventional gas initiatives, with $900 million (£669 million) earmarked for an $1.1 billion liquefied natural gas (LNG) export terminal project in Louisiana.

Company officials stated that "after careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future."

RWE will relinquish its leases in California, Louisiana, and the New York Bight. In a statement posted on social media, Interior Secretary Doug Burgum expressed his appreciation for RWE's agreement and the subsequent investment in energy projects that bolster the nation's security. He termed the deal as a victory for common sense energy policies, contrasting it with a system reliant on "costly subsidies."

The deal signifies the latest accord the Trump administration has struck this year, as the administration presses on with its efforts to halt offshore wind projects. President Trump, a strong advocate for the fossil fuel sector, has long dismissed offshore wind as "big, ugly windmills" and pledged not to pursue them during his presidency.

In March 2026, the DoI reached a similar agreement with TotalEnergies, prompting the French company to shift its investment towards an LNG plant in Texas and the development of conventional oil in the Gulf of Mexico. In addition, the administration signed a significant $129 billion (£96 billion) agreement with Duke Energy, terminating Duke's offshore wind lease in the Carolina Long Bay area.