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The US government has agreed to pay TotalEnergies $1 billion (€860 million) to abandon two planned offshore wind projects off the coasts of North Carolina and New York. In exchange, the French energy company will relinquish its existing leases and redirect the funds into fossil fuel and liquefied natural gas (LNG) projects in the US.

Patrick Pouyanné, chairman and CEO of TotalEnergies, said: “Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees.” The refunded lease fees will support construction of a Rio Grande LNG plant in Texas and further oil and gas development.

The leases, purchased in 2022, included the Carolina Long Bay project for $133 million (€115 million), expected to generate over 1 GW of power, enough for approximately 300,000 homes. A larger lease off New York and New Jersey, acquired for $795 million (€685 million), had the potential to generate 3 GW, powering nearly one million homes.

The Department of the Interior described the agreement as an “innovative agreement” and highlighted TotalEnergies’ commitment to projects that deliver reliable and affordable power. Interior Secretary Doug Burgum said it would help lower Americans’ electricity bills.

Environmental groups have criticized the deal. Lena Moffitt, executive director of Evergreen Action, called it “a billion-dollar bribe to kill clean energy,” while Ted Kelly, clean energy director at the Environmental Defense Fund, described it as “an outrageous misuse of taxpayer dollars to prevent Americans from having clean, affordable power exactly when they need it most.”

Source: euronews.com