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Trump Administration and Energy Companies Agree to Terminate Offshore Wind Leases with Nearly $2 Billion in Reimbursements

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U.S. Terminates Offshore Wind Leases in Nearly $1.9 Billion Settlement with Energy Companies

The administration has reached agreements with three energy companies to terminate multiple offshore wind leases in U.S. federal waters, redirecting billions in reimbursements toward fossil fuel projects.

Under the terms of the settlements, the companies will receive reimbursements totaling nearly $1.9 billion for lease fees and agree to redirect those funds into fossil fuel projects. The companies have also committed not to pursue new offshore wind developments in the United States.

Recent Agreements

TotalEnergies (March Agreement)

The administration agreed in March to pay TotalEnergies, a French energy company, $1 billion to terminate two offshore wind leases. The company will invest the reimbursed funds into a liquefied natural gas (LNG) plant in Texas and other oil and gas operations.

  • Carolina Long Bay project (North Carolina): Acquired in 2022 for approximately $133,000; was projected to generate over 1 gigawatt of power.
  • New York/New Jersey project: Acquired in 2022 for $795,000; was projected to generate 3 gigawatts of power.

TotalEnergies had paused both projects following the 2024 presidential election. CEO Patrick Pouyanné stated the company renounced U.S. offshore wind development, describing the investment reallocation as a "more efficient use of capital."

Bluepoint Wind and Golden State Wind (Monday Agreement)

The U.S. Department of the Interior announced the department will pay two companies $885 million to terminate their offshore wind leases.

  • Bluepoint Wind (New Jersey/New York): Will receive approximately $765 million in lease fee reimbursements. The company will invest an equivalent amount in a U.S. LNG facility.
    • Co-owned by Ocean Winds (a joint venture of EDP Renewables and Engie) and Global Infrastructure Partners (BlackRock).
  • Golden State Wind (off Morro Bay, California): Will receive approximately $120 million in lease fee reimbursements. The company will invest a similar amount in U.S. oil, gas, or LNG projects, primarily along the Gulf Coast.
    • Co-owned by Ocean Winds and the Canada Pension Plan Investment Board.

Both companies have agreed not to pursue new U.S. offshore wind developments.

Administration Policy and Legal Context

The administration has taken multiple actions to halt offshore wind development, including canceling funding and issuing stop-work orders. In December, a federal judge vacated an executive order blocking offshore wind. In January, the administration ordered construction to stop on five major East Coast offshore wind projects, citing national security concerns; federal judges subsequently allowed all five projects to resume. The Bureau of Ocean Energy Management has rescinded all designated wind energy areas in federal waters under the current administration.

Interior Secretary Doug Burgum stated that the wind energy industry was reliant on taxpayer subsidies and that the reimbursements support "baseload power" and lower utility bills.

Reactions

Lawmakers and Officials

  • Senate Minority Leader Chuck Schumer (D-NY) criticized the termination of Bluepoint Wind, stating the move would harm working families and likely increase electricity prices in New York.
  • New York Governor Kathy Hochul (D) described the agreement as a "pay-not-to-play scheme" and an "outrageous abuse of taxpayer dollars," affirming her commitment to an energy policy including renewables.
  • Democratic Representatives Jared Huffman (D-CA) and Jamie Raskin (D-MD) described the earlier TotalEnergies deal as "outrageous" and "almost certainly unlawful" in an April 6 letter.

Companies

  • Michael Brown, CEO of Ocean Winds North America, said the agreement provided "clarity" for the company and investors. He noted the company's priority is disciplined capital allocation and reliable energy solutions.
  • TotalEnergies CEO Patrick Pouyanné stated the company renounced U.S. offshore wind development, adding that such projects were "not in the country's interest."

Environmental Organizations

  • Environment California said the agreement may undermine California's clean energy progress.
  • The Natural Resources Defense Council and Environmental Defense Fund described the deals as a "misuse of taxpayer dollars."
  • Evergreen Action described the TotalEnergies agreement as a method to obstruct wind projects after losing in court.

Projected Impact

Bluepoint Wind and Golden State Wind were projected to power over 1 million homes each and assist New Jersey, New York, and California in meeting clean energy goals. If developers wish to proceed with offshore wind projects in the future, they would need to purchase new leases.

California's target of 25 GW of offshore wind by 2045 remains in place, with four leases still active. Offshore Wind California executive director Adam Stern expressed optimism about future development. The Coastal Virginia Offshore Wind project, one of five previously halted projects, began supplying power to Virginia's grid on the same day as the TotalEnergies announcement.