The Trump administration has agreed to reimburse two energy corporations if they decide to abandon their offshore wind projects and instead invest in fossil fuels.
The Interior Department announced on Monday that Global Infrastructure Partners, a BlackRock (NYSE:BLK) affiliate, and Golden State Wind will be refunded for the capital they invested in offshore wind, on the condition that they forfeit their wind leases and invest in fossil energy.
Global Infrastructure Partners would invest up to $765 million in a U.S. LNG facility, after which its offshore wind lease would be canceled and reimbursed, as it exits new U.S. wind projects.
Meanwhile, Golden State Wind could get up to $120 million in reimbursed lease fees, tied to its investment in U.S. energy projects, with backing from Ocean Winds and Reventus Power. Ocean Winds is a joint venture of ENGIE and EDP Renewables, while Reventus Power operates as a portfolio company of the Canada Pension Plan Investment Board.
Interior Secretary Doug Burgum criticized the 2022 offshore wind leases as dependent on heavy taxpayer subsidies, arguing they were only viable with government support. He said companies are now redirecting investments toward more “affordable, reliable,” and secure energy infrastructure, as the U.S. moves away from what he described as costly and intermittent renewable projects.
Wind Projects Caught In Policy Crosscurrents
This move comes after French energy giant TotalEnergies (NYSE:TTE) signed settlement agreements with the U.S. Department of the Interior (DOI) and decided to abandon its U.S. offshore wind projects in March, citing that these projects were more expensive than those in Europe and could negatively impact power affordability for U.S. consumers. The company also stated that other technologies could meet the increasing electricity demand at a lower cost.
On the contrary, in January, Danish energy group Orsted (OTC:DNNGY) won the lawsuit to resume its $5 billion Revolution Wind project after it was halted by the Trump administration, marking the second court order overturning the stop-work decision over radar concerns.
Earlier this month, President Donald Trump invoked the Defense Production Act (DPA) to allocate federal funds towards various energy projects, including domestic coal power, liquefied natural gas (LNG), domestic petroleum, and power-grid infrastructure. This action allowed the Energy Department to use funding secured in 2025 from Trump’s key tax-and-spending package to overcome delays, financing deficits, regulatory obstacles, and market barriers.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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