The Trump administration has reached agreements with energy developers amounting to over $2.5 billion to cancel offshore wind leases. This development marks the third arrangement of its kind. The Interior Department announced on Wednesday that it plans to pay Invenergy hundreds of millions to halt plans for developing wind farms in both the Atlantic and Pacific regions.
Under this agreement, Invenergy will voluntarily give up four leases situated in federal waters. These leases included projects in the New York Bight, off the Central Coast of California, and in the Gulf of Maine. All these projects were at early development stages and faced limited prospects under the current administration, which has stopped all federal offshore wind permitting.
The government plans to reimburse Invenergy $765 million, which is slightly less than what they paid for these leases during the Biden administration. In return, Invenergy will focus on developing a minimum of five new natural gas-powered plants in the Midwest, as well as pursuing geothermal projects in the western United States.
This agreement follows similar deals that began in March with other companies, including French energy giant TotalEnergies. These agreements have led to the cancellation of wind farms off the coasts of California, New Jersey, New York, and North Carolina. In return, these companies are investing in fossil fuel endeavors.
The total spending by the government to end these offshore wind leases amounts to about $2.5 billion.