The French group has agreed to abandon two projects on the East Coast of the United States at the request of the Trump administration in exchange for a check of $928 million to invest in the production of gas and oil.
TotalEnergies reached an agreement with the Trump administration to forgo the construction of two wind farms on the East Coast of the United States during the CERAWeek energy conference in Houston, Texas on March 23. In return, the French group will receive $928 million (over 800 million euros), equivalent to the royalties due for these concessions, and will invest an equivalent amount to develop the production and exports of gas and electricity in the United States, according to a TotalEnergies statement.
“TotalEnergies has committed to investing around $1 billion – the value of the concessions for offshore wind farms it has renounced – in the production of oil, natural gas, and LNG in the United States,” said a statement from the U.S. Department of the Interior. “Following this new investment, the United States will reimburse the company, dollar for dollar, up to the amount it paid for the acquisition of these concessions. Additionally, TotalEnergies has committed to not developing any new offshore wind projects in the United States.”
“Considering that the development of offshore wind projects is not in the interest of the United States, we have decided to abandon these projects in exchange for the reimbursement of royalties paid to the American state,” said Patrick Pouyanné, CEO of TotalEnergies. He described it as a “win-win” agreement. “Studies conducted by the company on these concessions have shown that, unlike Europe, the development of offshore wind projects in the United States is costly and could negatively impact electricity prices for American consumers,” TotalEnergies reported.
The concessions involved are Carolina Long Bay (North Carolina), with a capacity of 1 GW, and New York Bight (off the coast of New York), with a capacity of 3 GW. These concessions were awarded in 2022.
The Trump administration is evidently attempting a new approach to block offshore wind. On the day of his inauguration, the President of the United States issued a decree opposing any new offshore wind projects, ordering the suspension of permit issuance in federal waters. Subsequently, the Department of the Interior suspended permits for several large wind farms under construction on several occasions, but federal courts authorized the resumption of work each time.
– Context: TotalEnergies agreed to abandon two wind projects on the East Coast of the United States in exchange for a substantial payment and investment in gas and oil production. – Fact Check: The statement indicates that the French group TotalEnergies will not be developing any new offshore wind projects in the United States as part of the agreement.
