The Trump administration has announced that it will pay $1 billion to French energy giant TotalEnergies to terminate two U.S. offshore wind leases, marking a significant escalation in the government’s campaign to dismantle renewable energy initiatives in favor of fossil fuels.According to a report by news agency AP, under the terms of the agreement, described by the Department of the Interior (DoI) as a “refund,” TotalEnergies will abandon planned wind projects off the coasts of North Carolina and New York. The company has pledged to redirect the reimbursed funds into domestic oil and natural gas projects, effectively ending its pursuit of offshore wind development in the United States.The move comes as President Trump’s administration continues its aggressive push to halt offshore wind construction, a sector the White House has frequently criticized as costly and inefficient. While federal judges have previously overturned several administration orders aimed at stopping specific projects, this deal represents a voluntary exit by a major international developer.The Interior Department characterized the deal as an “innovative agreement” that protects taxpayers from what it described as “ideological subsidies” that benefited an “unreliable” industry. In a statement, Interior Secretary Doug Burgum reportedly praised the pivot, noting that the administration welcomes the commitment to projects that provide “dependable, affordable power” and secure U.S. baseload energy.
DOI statement on TotalEnergies agreeing to end Offshore Wind projects
TotalEnergies has committed to invest approximately $1 billion—the value of its renounced offshore wind leases—in oil and natural gas and LNG production in the United States. Following their new investment, the United States will reimburse the company dollar-for-dollar, up to the amount they paid in lease purchases for offshore wind. Under this innovative agreement driven by President Donald J. Trump’s Energy Dominance Agenda, the American people will no longer pay for ideological subsidies that benefited only the unreliable and costly offshore wind industry. Additionally, in light of the national security concerns, TotalEnergies has pledged not to develop any new offshore wind projects in the United States.
TotalEnergies CEO on terminating the project
TotalEnergies had already paused its U.S. offshore wind operations following the election. CEO Patrick Pouyanné stated that the company renounced the projects in exchange for the reimbursement after determining that such developments were no longer in the country’s interest. Pouyanné added that the capital would be more efficiently used to finance a liquefied natural gas plant in Texas and further develop oil and gas activities.The financial arrangement specifies that TotalEnergies will be reimbursed for its initial lease investments only after it demonstrates progress in its fossil fuel ventures. This includes the $133 million paid in 2022 for the Carolina Long Bay project and the $795 million spent the same year for a massive site off the coast of New York and New Jersey. Together, the projects were once expected to generate enough clean energy to power more than 1.3 million homes.The administration’s pivot is part of a broader “all-of-the-above” energy strategy that heavily favors fossil fuels, which the president asserts will lower household costs and provide the massive amounts of energy required to maintain American leadership in artificial intelligence. While TotalEnergies continues to manage major offshore wind portfolios in Europe and Asia, its departure from the American offshore market signals a stark shift in the U.S. energy landscape.
North Carolina Governor slams project cancellation
North Carolina Governor Josh Stein, a Democrat, slammed the decision. He called it is “a terrible deal for the people of North Carolina and our country.” “Our state has the offshore wind potential to power millions of homes with renewable American-made energy. It’s ludicrous and wasteful that the Trump administration is spending $1 billion in taxpayer money to pay off a company to stop it from investing private dollars to create the clean energy we need,” Stein said in a statement.
