German energy company RWE announced it will halt its offshore wind projects in the US after reaching an agreement with the Department of the Interior (DoI) under President Donald Trump‘s administration, which will see the company receive $1.2 billion (£892 million) in compensation. RWE stated it will reinvest these funds into traditional gas energy projects.
In particular, $900 million (£669 million) will be allocated to a liquefied natural gas (LNG) export terminal project in Louisiana. “After careful consideration, we have concluded that it is impossible to obtain permits for these projects in the US in the near future,” the company’s statement reads. RWE also agreed to relinquish its leasing rights for marine areas off the coasts of California and Louisiana, as well as in New York Bay.
Trump administration’s position
Interior Secretary Doug Burgum stated in a post on X that Americans deserve an energy system based on common sense, not “expensive subsidies.” “We welcome the agreement with RWE and the company’s voluntary investments in projects that strengthen our country’s energy security,” he added.
This agreement is another step by the Trump administration, which has been actively working to dismantle offshore wind energy this year. Since returning to the White House, Trump, who openly supports the fossil fuel industry, has continued to promote the development of the oil and gas sector.
During his election campaign, he promoted the slogan “Drill, baby, drill.” Just a few days after returning to office, Trump stated that “we will not engage in wind energy,” calling wind turbines “big, ugly windmills” that allegedly pose a threat to wildlife.
Similar agreements with other companies
In March 2026, the Department of the Interior reached a similar agreement with TotalEnergies, which ended the French company’s offshore wind projects in the US. In return, the company agreed to redirect its investments to the construction of an LNG plant in Texas and the development of “traditional oil extraction” in the Gulf of Mexico.
Last month, the administration signed a similar agreement worth $129 million (£96 million) with Charlotte-based company Duke Energy in exchange for relinquishing the leasing rights for an offshore wind project in the Carolina Long Bay area. Meanwhile, RWE plans to invest approximately €17 billion (£14.5 billion; $19.6 billion) in the US over the next six years “to increase its generating capacity.”
Source: BBC World
