By Abdullahi Lukman
The administration of Donald Trump has agreed to pay about $1 billion to TotalEnergies SE to terminate two offshore wind leases in the United States, marking a major escalation in its opposition to renewable energy projects.
Under the agreement, the company will withdraw from planned wind developments off the coasts of North Carolina and New York and redirect the refunded funds into fossil fuel investments, including liquefied natural gas and expanded oil and gas operations.
TotalEnergies’ chief executive, Patrick Pouyanné, said the decision reflects a shift away from offshore wind in the US, describing the move as a more efficient use of capital.
The projects, acquired in 2022 for nearly $1 billion, were expected to generate up to 4 gigawatts of electricity—enough to power over one million homes.
The US Department of the Interior said the agreement ensures taxpayer funds are no longer used to support what it described as costly and unreliable offshore wind initiatives, while backing investments in more stable energy sources.
The move follows repeated legal setbacks for the administration, as courts previously overturned attempts to halt several offshore wind projects, including developments led by Ørsted.
Environmental organisations strongly criticised the deal, arguing it undermines clean energy progress and misuses public funds.
Groups including Environmental Defense Fund and 350.org described the payout as a subsidy for fossil fuels and a setback for affordable renewable energy.
Critics say the agreement could weaken efforts by US coastal states to expand wind power capacity, particularly as rising natural gas prices increase demand for alternative energy sources.
The deal signals a broader policy shift toward fossil fuel development, even as debates continue over energy security, costs, and climate commitments in the United States.
