Trump Administration Pays RWE $1.2B to Abandon US Offshore Wind Leases
German utility RWE will drop wind projects off New York, California and Louisiana in exchange for $1.22bn, redirecting funds into LNG and gas peaker plants.
Conversation activity · last 4 days peak 6/hr
Summary, timeline and people extracted by Claude from 47 items across 6 sources · 19h ago. Quotes are verbatim.
RWE has agreed to relinquish its US offshore wind leases in exchange for a $1.22 billion settlement with the Trump administration's Department of the Interior, becoming the fifth energy company to abandon offshore wind under a federal payout deal. RWE will redirect $900 million into a Louisiana LNG export terminal and $300 million into gas peaker plant turbines, bringing total taxpayer spending on cancelling offshore wind projects to nearly $4 billion since Trump's return to office.
- RWE will receive $1.22 billion to abandon offshore wind leases off New York, California and Louisiana, redirecting $900m to a Louisiana LNG terminal and $300m to gas peaker plant turbines.
- This is the fifth Trump administration deal paying an energy company to cancel offshore wind projects, following TotalEnergies ($928m) and Duke Energy ($129m), bringing total taxpayer spending to nearly $4 billion.
- Interior Secretary Doug Burgum framed the deal as improving energy security and affordability, while critics call it a taxpayer-funded subsidy to fossil fuels that undermines US competitiveness against countries expanding renewables, notably China.
- A similar earlier deal with TotalEnergies prompted a lawsuit by seven states, including New York, whose attorney general called it a 'sham deal'.
How it unfolded
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Analysis Mother Jones/Guardian tally and legal context
Coverage notes this is the largest such deal yet, brings total spending to almost $4 billion, and recalls that seven states sued over the earlier TotalEnergies deal, calling it a 'sham deal'.
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Report Cumulative cost reaches ~$4B
TechCrunch and other outlets calculate the administration has now spent nearly $4 billion across five deals convincing developers to abandon 12 offshore wind leases.
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Reaction Online backlash on Hacker News and Bluesky
Commenters criticized the deal as hypocritical given rising energy demand from AI data centers and contrasted it with China's renewable buildout.
“Parts of the world are literally on fire but the US is redirecting money to halt renewables and towards gas.”
chewbacha · Hacker News ↗ -
Event RWE-DoI settlement announced
RWE agreed to relinquish offshore wind leases off New York, California and Louisiana for $1.22 billion, redirecting funds to gas projects including a Louisiana LNG terminal.
“After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future.”
RWE · Hacker News ↗ -
Reaction Interior Secretary defends deal
Doug Burgum said the agreement supports energy security and affordability while criticizing wind subsidies.
“We welcome RWE's agreement and voluntary investment in projects that strengthen our nation's energy security.”
Doug Burgum · Hacker News ↗ - 5 weeks quiet
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Event Duke Energy deal
The administration signed a $129m agreement with Duke Energy to terminate its offshore wind lease in the Carolina Long Bay area.
- 17 weeks quiet
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Event TotalEnergies deal sets precedent
DoI reached a deal with TotalEnergies ending its NY offshore wind lease in exchange for redirecting investment to an LNG plant in Texas and oil development in the Gulf of Mexico.
What people are saying verbatim
“After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future.”
RWE, German energy company · BBC News ↗ · Aug 5
“We welcome RWE's agreement and voluntary investment in projects that strengthen our nation's energy security, provide dependable baseload power, and help keep electricity affordable for hardworking Americans today while supporting our country's long-term energy future.”
Doug Burgum, US Interior Secretary · Mother Jones (via Guardian) ↗ · Aug 6
“Parts of the world are literally on fire but the US is redirecting money to halt renewables and towards gas.”
chewbacha, Hacker News commenter · Hacker News ↗ · Aug 6
“I agree. This is why we are building offshore wind and not subsidizing fossil fuels, right?”
saagarjha, Hacker News commenter · Hacker News ↗ · Aug 6
“Meanwhile China is becoming entirely energy independent and electrifying their economy. I don't understand how the US doesn't see that they won't be top dog forever especially in this multipolar age.”
satvikpendem, Hacker News commenter · Hacker News ↗ · Aug 6
“I STRONGLY object to my tax $$ being spent in this fashion. 🤬”
crankyolady.bsky.social, Bluesky user · Bluesky ↗ · Aug 7
“The Trump administration has now spent nearly $4 billion coaxing offshore wind developers into canceling their projects. Much of that money is flowing back into oil and gas projects, creating another taxpayer subsidy for the industry.”
dechant.bsky.social, Bluesky user · Bluesky ↗ · Aug 6
“Rather than expand our capacity through renewable energy this administration is investing in draconian fossil fuel projects that often deplete and pollute our resources.”
No-Upstairs9564, Reddit commenter · Reddit ↗ · Aug 8
Voices from the web unedited
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Trump keeps spending US tax dollars to kill offshore wind and boost oil and gas
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Situation is quite different than the article paints it. The venture was risky to begin with, and already dead in 2026. Subsidies are gone, GE didn't produce their new 18MW turbine, interest rates and construction costs went up etc. State bureaucracy is its own quagmire, the fact that federal admin turned hostile was just the cherry on top.Current…
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The tariffs aren't helping Americans. The ICE raids on peaceful US cities aren't helping Americans. The tax cuts for billionaires aren't helping Americans. The ballroom, reflecting pool, gold statues, etc aren't helping Americans. The unbridled corruption isn't helping Americans. Why should Trump's energy policy be any different than all his other…
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Trump keeps spending US tax dollars to kill offshore wind and boost oil and gas [via @theguardian.com]
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I read up recently on the history of the fall of the roman empire and it was fascinating how eerily similar it was to the current state of the US. Overwhelmed by corruption and wars they make stupider and stupider decisions on ever larger scales, ever more frequently. And the population grows ever more cynical, eventually opting for…
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It doesn't benefit Americans in any way in fact we fall behind those nations that are using renewable energy. Rather than expand our capacity through renewable energy this administration is investing in draconian fossil fuel projects that often deplete and pollute our resources .
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El gobierno de Trump paga 1.200 millones de dolares a una empresa europea para que paralice la construcción de un polígono eólico marino y renuncie a la concesión. La empresa lo reinvertirá en USA para la construcción de una plataforma de exportación de gas natural.
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> Interior Secretary Doug Burgum said in a statement posted on X that Americans deserve an energy system built on common sense and not one dependent on "costly subsidies".I agree. This is why we are building offshore wind and not subsidizing fossil fuels, right?
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It's helping China. By 2029 when this madness is over, there will be no catching up with them.
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The Trump administration has now spent nearly $4 billion coaxing offshore wind developers into canceling their projects. Much of that money is flowing back into oil and gas projects, creating another taxpayer subsidy for the industry.