German energy company RWE will abandon its US offshore wind projects after agreeing to a $1.22 billion settlement with the Department of the Interior. The company will relinquish leases off New York, California and Louisiana and redirect the funds toward liquefied natural gas and natural gas power projects.
Under the agreement, RWE will invest $900 million in a Louisiana LNG project and another $300 million in turbines for its pipeline of 15 natural gas peaker plants across the US. RWE said there was no viable path to permit its offshore wind projects in the country for the foreseeable future.
The company said in its official announcement that the settlement resolves claims against the US government and covers its offshore wind leases in the New York Bight, off California and off Louisiana. RWE plans to invest about €17 billion in the US over the next six years to increase its generation capacity.
Trump Administration Continues Offshore Wind Exit Deals
Interior Secretary Doug Burgum said Americans deserve an energy system based on what he described as common sense rather than costly subsidies. He welcomed RWE’s agreement and its planned investments in projects that the administration says will strengthen US energy security.
President Donald Trump has repeatedly criticised wind power and has sought to increase federal support for fossil fuels since returning to office. The Department of the Interior said in July 2025 that it was ending what it described as preferential treatment for wind energy and halting future offshore wind lease sales.
Trump has also repeatedly criticised the appearance and cost of wind turbines. This week, he said that any country with windmills was a “loser.”
Other Energy Companies Have Reached Similar Agreements
RWE’s settlement follows several agreements between the Trump administration and other energy companies over US offshore wind development. In March 2026, TotalEnergies agreed to end its US offshore wind plans and redirect investment toward an LNG facility in Texas and conventional oil development in the Gulf of Mexico.
The administration also reached a $129 million agreement with Charlotte-based Duke Energy last month in exchange for the termination of its offshore wind lease in the Carolina Long Bay area. Similar agreements involving offshore wind developers have brought the government’s total commitments to roughly $4 billion, according to the Associated Press.
RWE’s abandoned leases were still at an early planning stage and were not expected to begin operating until the 2030s. The three lease areas had the potential to provide around seven gigawatts of generation capacity.
Featured image credits: Wikimedia Commons
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