US to pay TotalEnergies $1 billion to stop developing offshore wind in US
Deal swaps 3 GW of clean energy for fossil fuel investments and an LNG export terminal.
The US Department of the Interior, under the Trump administration, has struck a deal to pay French energy giant TotalEnergies approximately $1 billion to walk away from its offshore wind lease sites. In return, TotalEnergies must invest that same amount in US-based fossil fuel projects and permanently renounce any further offshore wind development in the country. This move directly targets two projects: a smaller site near the Carolinas and the major 3-Gigawatt Attentive Energy project planned off New Jersey, which represented significant clean energy capacity for the region.
The administration framed the deal as lowering costs for American families, despite analysts noting it increases consumer exposure to volatile international fossil fuel markets. The agreement specifically requires TotalEnergies to develop an additional liquefied natural gas (LNG) export terminal. Critics argue this will tie US energy prices more closely to global shocks, contradicting claims of affordability, while simultaneously eliminating a key renewable energy source and the jobs it would have created.
- $1 billion payment to TotalEnergies to cancel two offshore wind leases, including the 3 GW Attentive Energy project.
- Mandatory $1 billion reinvestment in US oil & gas, including a new LNG export terminal, locking in fossil fuel infrastructure.
- TotalEnergies must permanently abandon all future US offshore wind development, a significant policy shift against renewables.
Why It Matters
This swaps guaranteed clean energy for volatile fossil fuels, impacting energy security, climate goals, and consumer costs.