Another offshore wind power developer has announced a settlement with the U.S. Department of the Interior which will see it relinquish its offshore wind leases and instead invest in other energy projects.
RWE U.S. Offshore said the deal will see it end its lawsuits against the U.S. government over its leases off the coasts of New York, California, and Louisiana. Despite investing roughly USD 1 billion (EUR 866 million) in energy projects on those leases, the company said it was no longer possible to secure permits for them.
“After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future,” RWE U.S. Offshore said in a release. “The settlement resolves RWE U.S. Offshore’s legal claims and provides USD 1.22 billion [EUR 1 billion] in settlement funds. The company determined that this resolution best serves the interests of its stakeholders and allows it to direct resources toward energy projects that can be advanced with certainty.”
Ending commercial offshore wind projects has been a priority policy for the administration of U.S. President Donald Trump, with the president signing an executive order pausing offshore wind projects on day one of his second term.
After failing to block offshore wind power development via stop-work pauses, the Trump administration began buying out wind power developers in April, offering them money back for their investments under an agreement to reinvest the money in other energy projects. The administration has now bought out three of the five offshore wind leases off the coast of California.
“The Trump administration is trying to completely throttle California’s offshore wind industry, saddling families and businesses with more expensive, polluting energy,” Environmental Defense Fund California Senior Director Katelyn Roedner Sutter said in a release. "Paying companies to shut down massive sources of clean, reliable power while our state's electricity needs keep growing is a recipe for higher costs. Californians did not sign up for these wasteful payouts that mean higher bills, more pollution and less jobs.”
Attorneys general from multiple states have announced their intent to sue the Trump administration over the various deals.
“Using taxpayer money to strike backroom buyouts that make clean-energy projects disappear is illegal,” California Attorney General Rob Bonta said in a release. "Make no mistake: California will continue to hold the Trump administration accountable for illegally striking deals to kill offshore wind projects.”
