Trump administration to pay 2 more companies to walk away from US offshore wind leases
WASHINGTON (AP) — The Trump administration announced Monday it will make two more payments to energy companies to abandon U.S. offshore wind projects under development.
Bluepoint Wind and Golden State Wind agreed to end their offshore wind leases in exchange for repayments of approximately $900 million. Both companies have decided not to pursue new offshore wind projects in the United States, the Interior Department announced Monday.
Bluepoint Wind is an offshore wind project in the early stages of development off the coasts of New Jersey and New York; Golden State Wind, on the other hand, is a floating offshore wind project proposed off the central coast of California.
Interior said it follows the pattern of its recent deal with French energy company TotalEnergies. $1 billion payment Moving away from projects off the coasts of North Carolina and New York. TotalEnergies agreed to repay its rents in March and will invest the money in fossil fuel projects.
The agreements come after the administration’s efforts to curb offshore wind were blocked by courts. a federal judge He canceled Trump’s executive order In December, he blocked wind energy projects and declared them illegal, joining state attorneys general from 17 states and Washington, D.C., who challenged the decision.
Two weeks later management ordered construction to be stopped on five major East Coast offshore wind projects, citing national security concerns. Developers and states sueand federal judges were allowed All five will continue constructionessentially concluded that the government had not demonstrated that the national security risk was imminent enough to warrant halting construction.
Environmental groups and Democrats have questioned the legality of the TotalEnergies deal and said it could be harmful to the U.S. economy and the environment. Senate Minority Leader Chuck Schumer (D-Y) criticized the administration for shutting down Bluepoint Wind, saying it was a “reckless decision that harms working families and the economy” and will likely increase electricity prices in New York.
“Donald Trump is once again attacking New York offshore wind without justification at the behest of fossil fuel donors,” he said in a statement Monday.
Both Bluepoint and Golden State are jointly owned by Ocean Winds, a joint venture between EDP Renewables and French energy giant Engie. Interior said Bluepoint’s lease was $765 million, while Golden State Wind would be entitled to recover approximately $120 million in lease fees.
Interior Secretary Doug Burgum said companies were selling a product that would only be viable if backed by massive taxpayer subsidies when they bid for offshore wind leases in 2022 under former President Joe Biden.
