RWE to Get $1.22Bn to Drop US Offshore Wind Leases

Announced Thursday with the US interior department, the deal is the fifth such payout by the administration, bringing total taxpayer spending on killing offshore wind projects to nearly $4bn. RWE, which paid $1.1bn for its New York lease in a 2022 auction and $163m for the other two, said there is "no path forward to permit these projects in the US for the foreseeable future. As part of the settlement, RWE will spend $900m on a 16% stake in an unnamed Louisiana LNG project and sign a $300m turbine reservation agreement for 15 natural gas peaker plants.

Interior Secretary Doug Burgum hailed the deal, saying it strengthens energy security and keeps electricity affordable. Earlier agreements with TotalEnergies and Duke Energy totaled $2.7bn, and seven states, including New York, have sued over what Attorney General Letitia James called a "sham deal. The administration has also spent up to $1.1bn to boost coal, while critics argue it raises energy bills. A report by the Environmental Integrity Project found every fully operational US LNG facility violated federal pollution limits in recent years.