Trump Administration Pays RWE $1.22 Billion to Cancel Wind Projects

The Donald Trump administration reached a $1.22 billion settlement with German energy developer RWE to cancel offshore wind leases off the coasts of New York, California, and Louisiana. Under the agreement, RWE will relinquish its lease holdings, including the Community Offshore Wind project, and redirect the funds into fossil fuel infrastructure. This includes a $900 million investment for a 16% stake in Woodside Energy’s Louisiana LNG project and $300 million for natural gas turbine reservations.

This deal is the fifth and largest of its kind this year, bringing the total administration spending on lease buybacks to approximately $3.92 billion. Previous settlements include agreements with TotalEnergies SE, Duke Energy, and Invenergy. Interior Secretary Doug Burgum defended the strategy as a shift toward common sense energy security and dependable baseload power, arguing that taxpayers should not indefinitely subsidize unreliable projects.

The buyout strategy faces significant legal and political backlash. New York, California, and six other Northeastern states have challenged the settlements in court, arguing they violate the Outer Continental Shelf Lands Act. Critics, including Senator Chuck Schumer and Representative Jared Huffman, allege the administration is illegally using the Judgment Fund as a political slush fund to bribe companies to abandon clean energy in favor of fossil fuel donors.