The Trump administration has reached a $1.2 billion agreement with German energy company RWE to halt its offshore wind development in the United States. Under the deal brokered by the Department of the Interior, RWE will relinquish leases off the California and Louisiana coasts as well as in the New York Bight region.
RWE indicated that it determined “there is no path forward to permit these projects in the US for the foreseeable future.” The company plans to redirect the settlement funds into conventional energy projects, allocating $900 million toward a liquefied natural gas export terminal in Louisiana. The German firm stated its intention to invest approximately €17 billion in the US over the next six years focused on generation capacity expansion.
Interior Secretary Doug Burgess praised the agreement, stating that Americans deserve an energy system based on practical principles rather than what he characterized as “costly subsidies.” He emphasized that RWE’s decision to invest in projects strengthens national energy security.
This arrangement represents the latest in a series of similar agreements the administration has negotiated with energy companies holding offshore wind leases. President Trump has consistently opposed wind energy development, describing turbines as “ugly” and “big, ugly windmills” that pose dangers to wildlife. The administration previously negotiated comparable deals with French company TotalEnergies in March 2026 and Duke Energy last month, each involving the termination of offshore wind projects in exchange for commitments to fossil fuel infrastructure investments.
The pattern of agreements aligns with Trump’s “drill, baby, drill” campaign messaging and his stated support for the fossil fuel industry’s expansion in American energy production.
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