US to Pay RWE $1.2 Billion to Abandon Offshore Wind Projects

German energy giant RWE is abandoning plans to develop offshore wind projects in the United States after reaching a $1.2 billion agreement with the US Department of the Interior.
The deal is another sign of the major shift in Washington’s energy policy under President Donald Trump, whose administration has moved to restrict offshore wind development while placing greater emphasis on conventional energy sources.
RWE said that after careful consideration it had concluded there was no viable path for its offshore wind projects to receive the necessary permits in the United States for the foreseeable future.
Under the agreement, the German company will relinquish offshore wind leases off the coasts of California and Louisiana, as well as in the New York Bight area of the Atlantic Ocean.
Abandoning the wind projects, however, does not mean RWE is withdrawing from the US energy market.
The company plans to invest approximately €17 billion in the United States over the next six years as it expands its power generation capacity.
Part of the capital associated with the agreement will instead be directed towards natural gas projects. Around $900 million is expected to be invested in a liquefied natural gas export terminal project in Louisiana.
The move means that one of Europe’s largest renewable energy companies will redirect a significant portion of its planned US investment from offshore wind towards gas infrastructure.
US Interior Secretary Doug Burgum welcomed the agreement, arguing that Americans deserve an energy system based on economically sustainable decisions rather than dependence on costly subsidies.
The Trump administration has repeatedly taken action against the expansion of offshore wind energy. Trump himself has long criticised wind turbines, describing them as expensive, unattractive and harmful to wildlife.
Since returning to the White House, Trump has placed increased oil and natural gas production at the centre of his administration’s energy strategy.
The agreement with RWE is not an isolated case. In March 2026, the Department of the Interior reached a deal with French energy company TotalEnergies to end its offshore wind projects in the United States.
The French company instead agreed to redirect investment towards LNG infrastructure in Texas and conventional oil development in the Gulf of Mexico.
A similar agreement was reached with US utility Duke Energy. The company received $129 million in exchange for terminating its offshore wind lease in the Carolina Long Bay area.
The series of agreements indicates a broader change rather than a single corporate decision. Washington is reducing support for some offshore wind developments while encouraging investment in natural gas, LNG and conventional energy production.
The shift could have significant consequences for European energy companies that have invested heavily in the US renewable energy sector in recent years.
RWE is one of Europe’s largest electricity producers and a major international investor in renewable energy. Its decision to abandon US offshore wind projects therefore sends an important signal to the wider industry.
The agreement also highlights an unusual aspect of the new US energy policy. RWE is not substantially reducing its presence in the country but changing the type of projects in which it invests.
Instead of offshore wind turbines, the German company will direct part of its capital towards gas infrastructure and other generation projects that are more closely aligned with the energy priorities of the current US administration.
The $1.2 billion agreement has therefore become one of the clearest examples so far of how Washington’s changing energy policy is beginning to reshape multibillion-dollar investment decisions across the American energy sector.