The White House has agreed to pay French energy giant TotalEnergies US$1 billion to abandon offshore wind projects along the U.S. East Coast, redirecting the company’s investment toward domestic oil, natural gas, and liquefied natural gas (LNG) production, officials said Monday.
The landmark agreement, announced by the U.S. Department of the Interior (DOI), represents a significant shift in American energy policy, as the Trump administration prioritizes conventional fossil fuels over renewable offshore wind developments.
Under the deal, TotalEnergies will renounce its offshore wind leases in New York and the Carolinas, with the U.S. government reimbursing the company dollar-for-dollar for the value of the leases, estimated at roughly $1 billion. The funds will instead be invested in four trains at the Rio Grande LNG plant in Texas, as well as conventional oil and shale gas projects in the Gulf of Mexico, the DOI said.
The move comes amid ongoing disruptions to global energy markets following the conflict in Iran, which has restricted oil flows through the Strait of Hormuz and contributed to surging prices worldwide. The U.S., the world’s largest LNG exporter, is increasingly seen as a critical supplier to Europe and Asia.
U.S. President Donald Trump, a longtime critic of offshore wind projects, hailed the deal as a victory for energy security and affordability. “Offshore wind is one of the most expensive, unreliable, and subsidy-dependent schemes ever forced on American ratepayers,” he said in a statement. “This agreement ensures dependable energy while supporting U.S. jobs and exports.”
TotalEnergies’ chairman and CEO, Patrick Pouyanné, said the company was pleased to align with the administration’s energy policy. “Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States in exchange for reimbursement of the lease fees,” Pouyanné said. He added that the redirected investments would support U.S. LNG exports and domestic energy infrastructure, including power for data centers.
Secretary of the Interior Doug Burgum echoed the administration’s stance, describing the agreement as “yet another win for President Trump’s commitment to affordable and reliable energy for all Americans.”
The agreement has raised concerns among renewable energy advocates and environmental groups, who argue that the United States risks falling behind in offshore wind development at a time when global efforts to combat climate change are intensifying. Vestas CEO, Henrik Andersen, recently defended wind energy as an essential component of the world’s clean energy transition, emphasizing the need for investment in renewable infrastructure.
More Read
Industry analysts said the move reflects the administration’s broader push to bolster domestic oil and gas output, particularly LNG, amid heightened global energy insecurity. By redirecting capital from wind to fossil fuels, the U.S. aims to secure supplies for both domestic consumption and international markets, particularly Europe, which has faced reduced gas flows due to geopolitical tensions.
TotalEnergies’ shift to U.S. fossil fuels marks a rare case of a major European energy company accepting government incentives to abandon renewable projects, highlighting the financial and political pressures shaping global energy investment decisions.
While the deal ensures the continuation of LNG projects, it underscores the contentious debate over energy priorities in the United States, pitting short-term energy security and economic concerns against long-term climate objectives. Observers say the agreement will be closely watched as a precedent for how the U.S. balances fossil fuel production with renewable energy ambitions in the coming years.
For now, the administration’s strategy is clear: prioritize conventional fuels to secure domestic supply, support export growth, and reduce reliance on high-cost renewable alternatives, even as offshore wind projects face cancellation along the East Coast.
