This was reported by the UPI news agency.
Deal Details and Shift in Energy Policy
The administration of President Donald Trump will pay TotalEnergies $928 million as compensation for ending the construction of wind farms off the shores of New York and North Carolina. The Department of the Interior (DOI) stated that the payment will be finalized after the company invests an equivalent amount in oil, natural gas, and liquefied natural gas (LNG) production within the United States.
Additionally, TotalEnergies pledged not to develop any new offshore wind projects in the United States, citing national security concerns.
"Offshore wind is one of the most expensive, unreliable, environmentally disruptive and subsidy-dependent schemes ever forced on American ratepayers and taxpayers," stated Doug Burgum during an energy conference in Houston.
Shifting from Renewables to LNG
TotalEnergies is officially relinquishing its leases for the Carolina Long Bay and New York Bight sites, which were awarded in 2022. Studies indicated that, unlike in Europe, offshore wind development in the U.S. is too costly and could lead to higher energy bills for consumers.
Instead of wind farms, the French giant will focus on the following projects:
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Construction of the Mt. Rio Grande LNG plant in Texas.
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Participation in a major LNG project in Alaska.
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Providing gas supplies for the development of U.S. data centers and exports to Europe.
TotalEnergies CEO Patrick Pouyanne described the decision as a pragmatic business move based on the current energy policy in Washington. To date, the company is already a leading exporter of American LNG, having shipped 19 million tons of gas last year.
Context and Consequences
Donald Trump has long criticized wind energy, and over the past year, his administration has taken several steps to redirect investment toward the fossil fuel sector. Specifically, the DOI stopped issuing permits for new renewable energy projects last year.
According to Burgum, the era of taxpayers subsidizing unreliable energy is officially over, with the priority shifting toward creating secure U.S. base load power through traditional resources.
