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

German energy corporation RWE has agreed to a $1.2 billion payment to halt its offshore wind projects in the United States, according to a recent settlement with President Donald Trump's Department of the Interior (DoI). The German firm will now channel the funds towards conventional gas projects, with $900 million earmarked for a liquefied natural gas (LNG) export terminal in Louisiana.

Following extensive deliberation, RWE concluded that there is no viable path to secure permits for its US offshore wind ventures in the near future.

President Trump has long been a vocal critic of wind power, frequently denouncing "ugly" turbines during rally speeches. Fact-checking efforts have debunked Trump's claim that wind turbines contribute to whale deaths. As part of the agreement, RWE is relinquishing its leases off the coasts of California, Louisiana, and the New York Bight. The German company plans to redirect its $17 billion investment over the next six years into expanding US generation capacity.

Interior Secretary Doug Burgum expressed satisfaction with the deal, stating that Americans deserve an energy system grounded in practicality rather than one reliant on costly subsidies. He welcomed RWE's voluntary investment in projects that bolster the nation's energy security. This agreement comes as part of a series of moves by the Trump administration to stymie offshore wind projects.

The administration has sought to strengthen government support for fossil fuels since Trump's presidency came to an end. In March 2026, the Department of the Interior reached a similar $129 million settlement with TotalEnergies, mandating the company to reroute investment towards building an LNG plant in Texas and developing conventional oil in the Gulf of Mexico.