Trump Administration Pays TotalEnergies $1 Billion to Surrender U.S. Offshore Wind Leases and Shift to Fossil‑Fuel Projects
The Department of the Interior announced Monday that the Trump administration will pay French energy giant TotalEnergies up to $1 billion to relinquish two offshore wind leases off North Carolina and off New York/New Jersey, with the company pledging not to pursue any new U.S. offshore wind projects and instead invest the refunded capital in fossil‑fuel ventures. TotalEnergies CEO Patrick Pouyanné said the firm is renouncing U.S. offshore wind because it believes such projects are “not in the country’s interest,” and plans to use the reimbursed lease fees to finance a liquefied natural gas plant in Texas and expand its U.S. oil and gas activities, calling that a more efficient use of capital. Interior Secretary Doug Burgum praised the move as supporting “dependable, affordable power” and secure baseload generation, aligning with President Trump’s broader effort to roll back Biden‑era offshore wind expansion and double down on oil, gas and coal. Environmental groups including NRDC and the Environmental Defense Fund condemned the settlement as an “outrageous misuse of taxpayer dollars” that effectively pays a multinational to block clean‑energy projects at a time of high energy costs and worsening climate risks. The deal comes just months after federal judges overturned Trump‑ordered construction halts on five East Coast wind farms, underscoring that the administration is now using financial settlements and lease policy to attack offshore wind after losing in court.
📌 Key Facts
- The Trump administration, through the Department of the Interior, agreed to pay TotalEnergies up to $1 billion to give up two U.S. offshore wind leases acquired in 2022 off North Carolina (Carolina Long Bay) and off New York/New Jersey.
- TotalEnergies pledged not to develop any new offshore wind projects in the United States and will direct the refunded lease fees into building an LNG plant in Texas and expanding its U.S. oil and gas operations.
- Interior Secretary Doug Burgum framed the deal as delivering dependable, affordable baseload power, while NRDC and EDF blasted it as a reckless, taxpayer‑funded effort to stop clean offshore wind just as global offshore wind development accelerates and China leads in new installations.
- The agreement follows federal court rulings that overturned Trump’s previous attempts to halt five major East Coast offshore wind projects on claimed national‑security grounds, rulings that allowed those projects to resume construction.
📊 Relevant Data
Black and Latino households in the US pay 13-18% more on average for energy per square foot of housing compared to White households.
The levelized cost of energy for offshore wind in the US averages $72–140 per MWh, compared to $45–74 per MWh for gas combined-cycle plants.
Is Offshore Wind Really Cheaper Than Gas? A Reality Check — EV World
The average capacity factor for wind energy in the US was 36% in 2022, while natural gas combined-cycle plants often achieve around 60%.
Land-Based Wind Market Report: 2023 Edition — US Department of Energy
Building out 23 GW of offshore wind is estimated to support an annual average of 43,500 jobs during construction and 33,200 ongoing jobs, compared to fewer jobs from equivalent oil and gas development.
Potential Economic Implications of Offshore Wind for the U.S. Economy — Louisiana State University Center for Energy Studies
Lifecycle CO2 emissions for wind energy are around 11 g CO2 per kWh, compared to roughly 465 g CO2 per kWh for natural gas.
How Wind Can Help Us Breathe Easier — US Department of Energy
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