Company found no path to permit projects for foreseeable future
RWE U.S. Offshore said Thursday it reached a $1.22 billion deal with the Trump administration to relinquish offshore wind leases for projects under development off New York, California and Louisiana. In exchange for the payment, the company is giving up the wind power leases.
RWE said its leases represented years of planning, investment and partnership with federal agencies, but that the company found no path forward to permit the projects for the foreseeable future.
The agreement is the latest in a series of lease buybacks in which the administration has been purchasing offshore wind leases from energy companies as it seeks to discourage the expansion of wind energy, according to the Associated Press.
President Donald Trump has said his goal is to not let any “windmills” be built.
Offshore wind produces electricity cleanly, while oil, coal and natural gas emit carbon pollution when burned, the AP reported.