German energy company RWE has announced it will abandon its offshore wind projects in the United States after reaching a $1.2 billion (£892 million) payout agreement with President Donald Trump's Department of the Interior (DoI).
The company confirmed it would now reinvest the sum into conventional gas projects, including a $900 million (£669 million) commitment towards a liquefied natural gas (LNG) export terminal project located in Louisiana.
In a statement, RWE said: "After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future." The agreement entails RWE relinquishing its existing leases off the coasts of California and Louisiana, as well as in the New York Bight.
The German firm outlined broader plans to invest approximately €17 billion (£14.5 billion; $19.6 billion) in the US over the next six years "to grow its generation capacity," indicating a strategic shift in its US investment focus away from offshore wind.
The deal aligns with President Trump's long-standing public opposition to wind power. He has frequently used rally speeches to criticise wind turbines, referring to them as "ugly" and dangerous to wildlife. Days after his return to office, President Trump stated, "we're not going to do the wind thing," and called them "big, ugly windmills." This week, he further commented that "any country with windmills is a loser."
Interior Secretary Doug Burgum, representing the DoI, posted on X that Americans are entitled to an energy system founded on "common sense" rather than one dependent on "costly subsidies." He added: "We welcome RWE's agreement and voluntary investment in projects that strengthen our nation's energy security."
This agreement represents the latest in a series of similar deals secured by the Trump administration this year, as President Trump continues his push to halt offshore wind developments. A vocal supporter of the fossil fuel industry, he campaigned for the presidency under the slogan "drill, baby, drill" and has sought to increase government support for conventional energy sources.
In March 2026, the DoI reached a comparable agreement with French energy firm TotalEnergies, which resulted in the termination of the company's offshore wind projects in the US. TotalEnergies subsequently agreed to redirect its investment towards building an LNG plant in Texas and developing "upstream conventional oil" in the Gulf of Mexico.
A further $129 million (£96 million) agreement was signed last month with Charlotte-based Duke Energy, leading to the termination of that company's offshore wind lease in the Carolina Long Bay area.
The series of settlements underscores the administration's strategic pivot in US energy policy, favouring traditional fossil fuel extraction and generation over renewable wind energy infrastructure in key coastal regions.