This decision is a new illustration of the US government’s policy openly opposed to the development of new offshore wind capacity in the United States.
The Trump administration continues its fight against renewable energies, and on Monday, April 27, announced the abandonment of two large offshore wind projects, involving the French company Engie. This announcement from the US Department of the Interior comes a month after TotalEnergies withdrew from two wind farm contracts. Altogether, the four agreements were supposed to power around 3.6 million households with electricity.
The first decision communicated on Monday concerns Bluepoint Wind, planned off the coasts of New Jersey and New York to meet the needs of about one million households.
The consortium formed around Bluepoint Wind includes the French company Engie, the Portuguese EDP Renewables, and the American investment company Global Infrastructure Partners (GIP), a subsidiary of BlackRock.
The ministry also announced the end of the Golden State Wind program, off the coast of California, which was set to provide electricity to about 1.1 million households. Engie and EDP Renewables were also involved in this consortium through their joint venture Ocean Winds, associated with the investment company Reventus Power.
This decision is another example of the US government’s policy openly against the development of new offshore wind capacity in the United States, particularly targeting offshore wind, which often requires federal authorization.
Reinvestment in fossil fuels
The partners of Bluepoint Wind will be fully reimbursed for the amounts invested in the project, totaling $765 million so far. GIP has also promised federal authorities to make investments of up to $765 million in an LNG (liquefied natural gas) terminal.
For the Golden State Wind project, the amounts invested reached $120 million and will also be refunded, provided that the project actors commit to financing equivalent amounts for gas and oil infrastructure in the United States.
Engie, when asked by AFP, highlighted that both Bluepoint Wind and Golden State Wind were at an early stage of development, with delivery planned for 2033 for Bluepoint and during the 2030s for Golden State. Through its joint venture Ocean Winds, Engie remains fully committed to offshore wind development, mainly in Europe and the Asia-Pacific region.
Other projects in the crosshairs
Among the criticisms of wind energy by Donald Trump is the claim that it is “the most expensive energy” and “only works with massive subsidies,” accusations reiterated on Monday by Interior Minister Doug Burgum.
Several studies have shown, however, that wind energy in the United States is, on average, cheaper than several other sources, including coal, excluding public assistance.
Regarding the comparative environmental impact of each energy source, this was dismissed by the Trump administration.
“He is depriving the United States of energy sources and raising prices with his war against Iran,” said Maura Healey. “We should focus more on wind to lower costs, create jobs, and make our country more energy independent.”
The construction of the other three projects continues, namely Sunrise Wind in Massachusetts, Empire Wind off New York, and Coastal Virginia Offshore Wind in Virginia. The latter began producing electricity in March.
