Washington– The Trump administration announced two additional payments Monday for energy companies to withdraw from U.S. offshore wind projects under development.
Bluepoint Wind and Golden State Wind have agreed to terminate their offshore wind leases in exchange for compensation totaling about $900 million. The Interior Department announced Monday that the two companies have decided not to pursue any new offshore wind projects in the United States.
Bluepoint Wind is an offshore wind project in the early stages of development off the coast of New Jersey and New York, while Golden State Wind is a proposed floating offshore wind project off the central coast of California.
Interior said it is following the model of its recent deal with French energy company TotalEnergies, which receives approval $1 billion payment To move away from projects off the coast of North Carolina and New York. TotalEnergies in March agreed to what is essentially a refund of its leases, and will invest the money in fossil fuel projects instead.
These deals come after the courts thwarted the administration’s efforts to block offshore wind. Federal judge Repeal President Donald Trump’s executive order It blocked wind energy projects in December, declaring them illegal and siding with state attorneys general from 17 states and Washington, D.C., who challenged the order.
After two weeks, The administration ordered construction to stop on five major offshore wind projects on the East Coast, due to national security concerns. Developers and states suedand allowed federal judges All five to resume constructionessentially concluding that the government had not shown that the national security risk was so imminent that construction should be halted.
Environmental groups and Democrats have questioned the legality of the TotalEnergies deal and said it could be harmful to the U.S. economy and environment. Senate Minority Leader Chuck Schumer, D-N.Y., criticized the administration for shutting down Bluepoint Wind, calling it a “reckless decision that hurts working families and the economy” and is likely to increase New York’s electricity prices.
“Once again, Donald Trump is attacking offshore wind energy in New York at the behest of fossil fuel donors without any justification,” he said in a statement Monday.
Both Bluepoint and Golden State are owned by Ocean Winds, a joint venture between EDP Renewables and French energy giant Engie. Interior said Bluepoint’s lease cost $765 million, while Golden State Wind will be eligible to recoup nearly $120 million in lease fees.
Interior Secretary Doug Burgum said the companies sold a product that was only viable when backed by massive taxpayer subsidies when they applied for offshore wind leases in 2022, under former President Joe Biden.
“Now that hard-working Americans can no longer foot the bill for intermittent, expensive, and unreliable energy projects, companies are once again investing in affordable, reliable, and safe energy infrastructure,” Burgum said in a statement. “We welcome each of these projects’ willingness to support essential energy and lower utility bills for American families.”
Bluepoint Wind and Golden State Wind were slated to be major offshore wind projects, each capable of powering more than a million homes upon completion and helping New Jersey, New York and California meet their clean energy goals. If the projects were to move forward, the developer would have to purchase new leases. But under the Trump administration, the Bureau of Ocean Energy Management did just that All areas designated for wind energy were abolished In federal waters.
Bluepoint Wind is a partnership between Ocean Winds and Global Infrastructure Partners. Global Infrastructure Partners, part of investment giant BlackRock, has pledged to invest up to $765 million in a US-based liquefied natural gas facility. Interior said it would cancel the offshore wind energy lease and compensate the company for the amount invested in the LNG project.
Golden State Wind is a joint venture between Ocean Winds and the Canada Pension Plan Investment Board. Under its agreement, Golden State Wind can recoup about $120 million in lease fees after investing the same amount in oil and gas assets, infrastructure or projects along the Gulf Coast, Interior said.
The companies said they appreciated constructive engagement with management.
Michael Brown, CEO of Ocean Winds North America, said the deal provided “clarity” to the company and its investors. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for taxpayers, partners and shareholders,” he said.
In his second term, Trump passed away It’s all about fossil fuelswhich he says will lower costs for families, increase reliability and help the United States maintain global leadership in artificial intelligence.
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McDermott reported from Providence, Rhode Island
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