U.S to pay TotalEnergies $1 billion to kill East Coast wind projects
Aerial view of wind turbines at the Altamont Pass wind farm in Livermore, California, on January 13, 2026.
Justin Sullivan | Getty Images
The White House agreed to pay Total Energies $1 billion to scrap East Coast wind farm projects it has condemned as “costly”, with the French energy giant’s investment redirected to US LNG production instead.
The U.S. Department of the Interior (DOI) announced Monday what it said was a landmark agreement with TotalEnergies for the company to redirect capital from expensive, unreliable offshore wind leases to affordable, reliable natural gas projects that will provide secure energy for hard-working Americans.
TotalEnergies has committed to investing approximately $1 billion in U.S. oil and gas and LNG production (the value of offshore wind leases it has given up on DOI). he said in a statement.
Following the new investment, the ministry said the US will reimburse the company dollar-for-dollar for up to the amount it paid in lease purchases for offshore wind.
The deal will see TotalEnergies scrap offshore wind developments in New York and the Carolinas. Instead it will invest in conventional oil and shale gas production in the US Gulf, as well as the development of four trains at the Rio Grande LNG facility in Texas.
US President Donald Trump has made no secret of his distaste for offshore wind energy developments, often calling such projects expensive and ugly.
The announcement comes as the Iran conflict continues to disrupt global oil and gas supplies, making the United States, the world’s largest exporter of liquefied natural gas (LNG), an even more critical supplier to Asian and European markets.
TotalEnergies has pledged not to develop any new offshore wind projects in the U.S. “in light of national security concerns,” the DOI said in a statement Monday. CNBC has contacted TotalEnergies for comment and is awaiting a response.
TotalEnergies Chairman and CEO Patrick Pouyanné said in the DOI statement that the company is pleased to sign the settlement agreement and support the Administration’s Energy Policy.”
“Considering that the development of offshore wind projects is not in the country’s interest, we have decided to abandon offshore wind projects in the United States in exchange for the refund of rental fees,” he was quoted as saying.
Pouyanné said the deal would allow the group to “support the development of U.S. gas production and exports.”
“These investments will contribute to the supply of much-needed LNG to Europe from the US and provide gas for US data center development. We believe this is a more efficient use of capital in the US,” he added.
U.S. Interior Secretary Doug Burgum called the deal with the French energy giant “another victory for President Trump’s commitment to providing affordable and reliable energy for all Americans.”
“Offshore wind is one of the most expensive, unreliable, environmentally destructive and subsidy-dependent schemes imposed on American taxpayers and taxpayers. We welcome TotalEnergies’ commitment to developing projects that produce reliable, affordable energy to lower Americans’ monthly bills,” he added.
