The Trump administration has paid German utility RWE $1.2 billion to cancel an offshore wind lease. This latest cancellation brings the total spent by the administration to $3.93 billion for 12 abandoned offshore wind leases.
The cancelled wind farms, which included a New York project that would have generated over 3 gigawatts, were planned off the coasts of California, Louisiana, and New York. RWE will now invest $900 million of the payment into a small stake in a Louisiana liquid natural gas export terminal.
The remaining $300 million will be used by RWE to purchase natural gas turbines for 15 peaking power plants across the country. These plants are among the most expensive and polluting natural gas power plants to operate, and there is currently a backlog for new turbines extending into the early 2030s, making the completion timeline unclear.
Despite this cancellation, RWE is continuing its offshore wind investments elsewhere, having acquired 6.9 gigawatts of capacity in a recent UK auction.