Trump allocates $2.6 billion to cancel U.S. offshore wind farms

The Trump administration has committed nearly $2.6 billion to cancel offshore wind projects previously awarded during Joe Biden's presidency. This strategic shift aims to redirect investments toward natural gas and other energy sources that align with the current White House's priorities.

The most recent action involved an agreement with Invenergy, which will return four federal leases for offshore wind farms. These projects were located off the coasts of New York, California, and Maine and were in their early development stages. In exchange for the leases, the government will reimburse Invenergy $765 million, a sum slightly less than what the company initially paid for the exploitation rights.

These projects faced significant hurdles after Trump suspended federal permits for new offshore wind installations. Reports indicate Invenergy plans to use the funds to advance natural gas generation projects in Midwestern states and develop geothermal energy initiatives in the West, consistent with the administration's energy agenda. This agreement adds to similar deals made in recent months, bringing the total government expenditure for repurchasing or canceling offshore wind leases to approximately $2.6 billion.

The strategy has drawn criticism from environmental organizations and several Democratic-governed states. They argue that the White House is obstructing a crucial industry for the energy transition and question the use of public funds to dismantle projects that had already received authorization.