After striking a $1.2 billion (£892 million) compensation agreement with President Donald Trump’s Department of the Interior (DoI).
German energy giant RWE has announced that it would withdraw its offshore wind projects in the United States.
According to RWE, the money will now be reinvested in conventional gas projects, such as a $900 million (£669 million).
The business released a statement saying, “After careful consideration, it was determined that there is no path forward to permit these projects in the US for the foreseeable future.”
RWE Ends Major US Offshore Wind Projects
For years, Trump has mocked wind energy and frequently criticizes “ugly” windmills in his rally speeches.
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It has consented to give up its leases in the New York Bight and off the shores of California and Louisiana.
Over the next six years, the German company intends to invest around €17 billion (£14.5 billion; $19.6 billion) “to grow its generation capacity” in the US.
In a statement released on X, Interior Secretary Doug Burgum stated that Americans should not rely on “costly subsidies.” On the other hand, I’d rather have an energy system based on common sense.
He said, “We appreciate RWE’s consent and voluntary involvement in initiatives that improve our country’s energy security.
As Trump, a strong advocate for the fossil fuel sector, continues to lobby for the suspension of offshore wind projects.
The agreement is the most recent one the Trump administration has struck this year.
More Offshore Wind Projects Face Cancellation
After using the slogan “drill, baby, drill” throughout his presidential campaign. Trump has attempted to increase government support for fossil fuels.
A few days after taking office again, he said that “we’re not going to do the wind thing” and referred to them as “big, ugly windmills.”
He also declared that “any country with windmills is a loser” this week.
What the RWE Deal Means for US Energy
Rather, the company decided to redirect funds to produce “upstream conventional oil” in the Gulf of Mexico in Texas.
Last month, the government terminated Duke Energy’s offshore wind contract in the Carolina Long Bay region (£96 million deal) with the Charlotte.
