Trump Administration Cancels Offshore Wind Leases, Commits to Fossil Fuels

The Interior Department has entered an agreement to compensate the energy firm Invenergy for withdrawing its offshore wind farm projects in both the Atlantic and Pacific Oceans. This marks the third agreement of its kind by the Trump administration, intent on discontinuing offshore wind leases.

Invenergy will give up four federal water leases for wind projects previously planned for locations such as the New York Bight, the Central Coast of California, and the Gulf of Maine. These projects were in initial planning phases and faced uncertainty due to the administration’s cessation of federal offshore wind permitting.

The reimbursed amount to Invenergy will be $765 million, which is a sum below their original investment during the Biden era lease purchases. Invenergy plans to allocate these funds towards developing at least five new natural gas-fired power plants in the Midwest, alongside geothermal initiatives in the Western U.S.

This agreement follows similar transactions with companies like TotalEnergies, involving the cessation of wind projects off California, New Jersey, New York, and North Carolina, in favor of fossil fuel investments.

The combined cost to the government for terminating these offshore wind leases has reached approximately $2.5 billion.