The Interior Department is killing two offshore wind projects along the East and West Coasts of the United States, repaying developers for the costs of the leases in exchange for investments in fossil fuels.
Interior announced Monday afternoon that it had struck agreements with Bluepoint Wind and Golden State Wind to end the projects’ offshore wind leases in exchange for a “dollar-for-dollar reimbursement” for what they paid when they secured the leases under the Biden administration.
Recommended Stories
“The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies,” Interior Secretary Doug Burgum said. “Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure.”
The Bluepoint Wind offshore project was being developed by Ocean Winds and BlackRock’s Global Infrastructure Partners. Global Infrastructure Partners has agreed to invest up to $765 million in a liquefied natural gas facility.
In exchange, Interior will reimburse the firm and cancel the offshore lease located off the coasts of New York and New Jersey. Bluepoint Wind has also agreed not to pursue new offshore wind projects in the U.S.
Off the coast of California, Golden State Wind has agreed to cancel its offshore wind lease in exchange for roughly $120 million in lease fees.
Developers, though, will only be able to recover the funds after investing an “equal amount” in U.S. oil and gas assets, energy infrastructure, and/or LNG projects along the Gulf Coast, Interior said.
The project has also agreed not to pursue offshore wind projects in the U.S.
The agreements come just over one month after Interior announced a similar buyout agreement with French energy major TotalEnergies.
In March, Burgum said the administration would pay the company $928 million to cancel federal water leases for two offshore wind projects located off the coasts of New York and North Carolina.
TRUMP KILLS TWO OFFSHORE WIND FARMS BY BUYING PROJECT FOR NEARLY $1 BILLION
As part of this agreement, TotalEnergies also said it would abandon the projects and future offshore wind developments in the U.S. and commit to natural gas investments in Texas.
It is the latest creative effort from the Trump administration to suppress offshore wind development in the U.S., as President Donald Trump has vowed to prevent any new wind turbines from being built under his presidency.
