French Energy Giant Gets $1B to Abandon US Wind Projects for Fossil Fuels

The Trump administration is paying French company TotalEnergies $1 billion to abandon offshore wind projects off North Carolina and New York coasts. The company will use the refunded lease money to build a natural gas plant in Texas instead.

The federal government will provide $1 billion to French energy giant TotalEnergies to abandon two offshore wind development sites as part of the current administration’s broader push against renewable energy projects.

Department of Interior officials announced Monday that TotalEnergies has accepted what amounts to a full reimbursement for wind energy leases located off North Carolina and New York’s coastlines. The company plans to redirect these funds toward fossil fuel development projects.

While the Trump administration previously attempted to stop offshore wind construction through direct orders, federal courts struck down those efforts. Environmental advocates are calling the TotalEnergies agreement an alternative strategy to prevent wind energy development. President Trump has prioritized fossil fuel expansion, arguing it will reduce energy costs, improve grid reliability, and support America’s competitive position in artificial intelligence technology.

Following Trump’s election victory, TotalEnergies had already suspended work on both wind projects.

As part of the deal, TotalEnergies has committed to avoiding any future offshore wind development within U.S. waters. Company CEO Patrick Pouyanné explained in a public statement that the firm is abandoning American offshore wind development in return for lease fee reimbursement, “considering that the development of offshore wind projects is not in the country’s interest.”

Pouyanné indicated the returned lease payments will fund construction of a Texas liquefied natural gas facility and expand oil and gas operations, describing this as “more efficient use of capital” for U.S. activities.

Following these investments, TotalEnergies will receive reimbursement up to the original lease purchase amounts, according to DOI officials.

“We welcome TotalEnergies’ commitment to developing projects that produce dependable, affordable power to lower Americans’ monthly bills while providing secure U.S. baseload power today — and in the future,” stated Interior Secretary Doug Burgum.

The previous Biden administration had promoted offshore wind as a key climate solution. Trump reversed these energy policies immediately upon taking office through executive actions favoring oil, gas, and coal development. Internationally, offshore wind markets continue expanding, with China dominating new installations worldwide.

Shortly before Christmas, the Trump administration stopped construction at five major Atlantic Coast wind projects, citing national security issues. Project developers and affected states filed lawsuits, and federal judges permitted all five projects to restart construction, essentially finding the government failed to demonstrate immediate risks requiring construction halts.

Coincidentally on Monday, one wind farm previously targeted by the administration, Coastal Virginia Offshore Wind, began supplying electricity to Virginia’s power grid. Developer Dominion Energy announced this operational milestone.

Environmental organizations have condemned the TotalEnergies agreement. The Natural Resources Defense Council characterized it as reckless to stop projects intended to reduce energy expenses.

Ted Kelly, clean energy director at the Environmental Defense Fund, criticized the proposed arrangements as “an outrageous misuse of taxpayer dollars to prevent Americans from having clean, affordable power exactly when they need it most.”

TotalEnergies acquired its Carolina Long Bay project lease in 2022 for approximately $133,000. The development was designed to produce over 1 gigawatt of electricity, sufficient for roughly 300,000 households. The company also purchased the New York and New Jersey lease in 2022 for $795,000. This larger project had potential to generate 3 gigawatts of clean electricity, enough to supply nearly one million homes.