- RWE abandons US offshore wind projects, citing regulatory hurdles and no path to permit them for the foreseeable future.
- RWE reached a $1.22 billion settlement to relinquish leases in the New York Bight, Louisiana, and California.
- Company will reinvest in gas projects: $900 million for an LNG export terminal and $300 million for flexible gas-fired power plants.
- RWE plans €17 billion US investment over six years to raise capacity from 13 GW to 22 GW by 2031, while maintaining offshore presence.
German energy company RWE announced on Thursday that it is abandoning its offshore wind projects in the United States, citing regulatory hurdles, and turning towards investments elsewhere.
The company reached a $1.22 billion settlement with the US government to relinquish its offshore wind leases in the New York Bight and off the coasts of Louisiana and California, RWE said in a statement.
US President Donald Trump, long a sceptic of climate change and an aggressive supporter of the fossil fuel industry, has pushed to halt several offshore wind projects.
Other energy firms, such as the French companies Engie and TotalEnergies, have also abandoned projects in the US since Trump’s return to power in 2025.
“After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future,” the company said.
The company said it had invested more than $1 billion in obtaining the leases and developing the planned offshore wind farms.
The company now plans to reinvest the money in gas projects in the US “to meet rapidly growing energy demand” instead of focusing on renewable energy.
RWE said it would invest $900 million in a liquified natural gas export terminal project in Louisiana and $300 million for flexible gas-fired power plants to meet peak electricity demands.
More broadly, RWE said the company has plans to invest approximately €17 billion in the United States over the next six years to increase its total power generation capacity from the current 13 GW to 22 GW by 2031.
Despite cancelling the US offshore wind projects, RWE noted in the statement that it would maintain a strong international presence in offshore wind, with “18 offshore wind farms currently in operation, four under construction, and additional projects in development”.
Add Comment