German energy firm RWE will abandon its offshore wind projects in the United States after a $1.2 billion payout agreement with the Department of the Interior.
In a statement, RWE said it would reinvest the money, including $900 million in a liquefied natural gas (LNG) export terminal in Louisiana, into conventional gas projects.
The company cleared its leasehold positions off the coasts of California, Louisiana and in the New York Bight, concluding that there is no viable path forward to permit these projects under current U.S. policy.
Interior Secretary Doug Burgum praised the agreement as a step toward an energy system built on “common sense” rather than costly subsidies, highlighting RWE’s voluntary investment in projects that strengthen national energy security.
The settlement fits a broader Trump‑era pattern of reallocating subsidies from offshore wind to fossil fuel ventures. Earlier this year, the Department of the Interior reached similar agreements with TotalEnergies and Duke Energy, redirecting their offshore wind investments into LNG, oil and gas development.
