RWE will abandon its US offshore wind projects after agreeing to a $1.2 billion settlement with the Department of the Interior and will relinquish leases off California, Louisiana and in the New York Bight. The company plans to reinvest much of the payout—about $900 million—into an LNG export terminal in Louisiana and intends to deploy roughly €17 billion in the US over six years for non-wind generation projects. The move follows similar settlements with TotalEnergies and Duke Energy and reflects a broader federal shift toward supporting fossil fuel development over offshore wind.
RWE To Abandon US Offshore Wind After $1.2bn Settlement With Trump Interior Department
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German energy giant RWE has agreed to abandon its planned offshore wind projects in the United States after reaching a $1.2 billion settlement with the US Department of the Interior (DoI). Under the agreement, RWE will relinquish offshore leases off the coasts of California and Louisiana and in the New York Bight.
RWE’s Plans and Reinvestment
RWE said it will redirect most of the settlement toward conventional gas developments, including approximately $900 million earmarked for a liquefied natural gas (LNG) export terminal in Louisiana. The company also announced plans to invest roughly €17 billion ($19.6 billion; £14.5 billion) in the United States over the next six years to expand its generation capacity, focusing on non-wind projects.
Official Statements
"After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future," RWE said in a statement.
Interior Secretary Doug Burgum welcomed the deal on X, saying Americans "deserve an energy system built on common sense and not one dependent on costly subsidies," and that the administration "welcomes RWE's agreement and voluntary investment in projects that strengthen our nation's energy security."
Policy Context and Related Deals
The settlement is the latest example of the current administration's efforts to halt large-scale offshore wind development in favor of fossil fuel projects. Earlier in 2026 the DoI reached a similar agreement with TotalEnergies that ended the French company's US offshore wind plans in exchange for redirected investment in an LNG plant in Texas and expanded conventional oil activity in the Gulf of Mexico. The administration also reached a $129 million settlement with Duke Energy for terminating its offshore wind lease in the Carolina Long Bay area.
Political Background
President Donald Trump has repeatedly criticised wind turbines, both during his campaign and since returning to office, describing them at rallies as "big, ugly windmills" and pledging not to pursue offshore wind. The recent series of settlements reflects that broader political and regulatory shift and highlights the permitting and political obstacles facing offshore wind developers in the US under the current administration.
Implications
RWE's decision to relinquish leases and reallocate capital to gas and LNG projects underscores a near-term shift in private investment driven by federal policy. The deals remove contested wind leases from the US development pipeline while channelling private funds toward projects the administration views as strengthening energy security. The long-term implications for US clean energy targets and the offshore wind industry will depend on future policy changes, state-level initiatives, and market conditions.
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