USA pays over a billion dollars for RWE to halt wind park construction

German energy giant RWE is shelving its plans for major offshore wind power projects in the United States, receiving a substantial compensation package of $1.22 billion from the US government. The company announced it reached a settlement with the US Department of the Interior to resolve claims and return offshore wind leases near New York, California, and Louisiana.

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to resolve claims against the US government and return their offshore wind leases off the coasts of New York, California and Louisiana

RWE stated that it would not receive approval for these projects in the US for the foreseeable future. The company had initially acquired these leases from the US government to develop offshore wind capacity in American waters, investing over $1 billion of its own funds into the leases and project development.

This settlement follows a similar action by the US government in April, which led two other companies, Bluepoint Wind and Golden State Wind, to abandon their US wind projects in exchange for nearly $900 million. The US Interior Department confirmed that both companies decided not to pursue new offshore wind projects in the United States.

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for the foreseeable future

The Trump administration has maintained a strong stance against renewable energy forms like wind and solar power. President Trump signed an executive order against the expansion of wind energy shortly after beginning his new term in January 2025. This contrasts with his predecessor, Joe Biden, who had actively promoted wind power. Trump has also recently announced investments totaling $700 million for the coal industry.

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to pursue new offshore wind projects in the United States