Trump Administration Pays $1 Billion to French Energy Company to Abandon US Offshore Wind Projects

The Trump administration has struck a controversial $1 billion deal with French energy giant TotalEnergies to abandon its offshore wind development projects in the United States. Under the agreement, TotalEnergies will receive what amounts to a refund for its lease payments for projects off the coasts of North Carolina and New York, redirecting those funds toward liquefied natural gas and other fossil fuel ventures in Texas.

The Interior Department characterized the arrangement as an “innovative agreement” that frees American taxpayers from “ideological subsidies that benefited only the unreliable and costly offshore wind industry.” The deal marks a significant shift in tactics after federal courts repeatedly thwarted President Donald Trump’s previous attempts to halt offshore wind development through executive orders.

“The Trump administration has been relentlessly creative in its efforts to stop offshore wind development in the U.S.,” said Robin Shaffer, president of the anti-offshore wind group Protect Our Coast New Jersey, who praised the administration’s “out of the box” thinking.

Critics have denounced the payment as wasteful and counterproductive. U.S. Senator Chuck Schumer of New York called it “a dangerous precedent and a shortsighted misuse of taxpayer dollars,” while Senator Tim Kaine of Virginia described the deal as “beyond idiotic,” particularly as energy prices surge during an ongoing war in Iran that has severely restricted crude oil and liquefied natural gas exports through the Strait of Hormuz.

The agreement comes as part of a broader campaign against renewable energy under the Trump administration, which has blocked dozens of clean energy projects and canceled billions in clean energy grants, referring to such initiatives as the “Green New Scam.” This occurs while the United States faces mounting pressure to increase power supplies to remain competitive with China in the artificial intelligence sector and to prevent electricity prices from rising further.

TotalEnergies had already paused its two U.S. offshore wind projects following Trump’s election victory. Under the new agreement, the company pledged not to develop any new offshore wind projects in the United States. CEO Patrick Pouyanné stated that the refunded lease fees would finance the construction of a liquefied natural gas plant in Texas and further development of oil and gas activities, describing it as a “more efficient use of capital” in the U.S. market.

Kit Kennedy, who directs the power division at the Natural Resources Defense Council, condemned the payment as a “boondoggle” that “transfers nearly $1 billion from American taxpayers to a foreign corporation and the oil and gas industry.” She questioned why taxpayer dollars were being used “to not develop power when we need energy,” calling the deal a “scam” that harms both the U.S. economy and environment.

The administration’s focus on stopping offshore wind development comes as some states are beginning to receive power from recently completed offshore wind projects. Connecticut is now receiving electricity from the Revolution Wind project, which state officials estimate will lower wholesale energy costs. Virginia also started receiving power this week from an offshore wind installation that had been targeted by Trump’s earlier executive actions.

U.S. Rep. Chellie Pingree, a Maine Democrat, has questioned whether the payout complies with appropriations law and announced plans to interrogate Interior Secretary Doug Burgum about the deal during upcoming budget hearings.

Trump’s opposition to offshore wind energy dates back years before his presidency. In 2015, he unsuccessfully fought an offshore wind farm near his golf course in Aberdeen, Scotland, claiming the turbines would spoil the view. Since returning to office, he has prioritized increasing production of fossil fuels, arguing they would give the U.S. the lowest-cost energy in the world, despite their contribution to climate change.

Dozens of commercial leases issued by the Bureau of Ocean Energy Management remain active for wind energy development in the U.S., leaving open the question of whether the administration might pursue similar buyouts with other developers. When asked if the administration would attempt to pay other companies to abandon their projects, Abigail Dillen, president of Earthjustice, responded, “Will they do this again? Maybe.”