The United States and TotalEnergies have reached an agreement to end the French company’s offshore US wind farm projects. The deal redirects nearly $1 billion from wind leases to U.S. oil and natural gas production.
The agreement involves TotalEnergies receiving a refund for leases off the coasts of North Carolina and New York. The company will now invest the funds into fossil fuel projects within the US, effectively halting their development of offshore wind power in the country.
This move follows repeated disruptions to multi-billion-dollar wind projects under the current administration. The deal includes reimbursement for two leases, including one for a large 3 GW wind farm project.
The agreement was announced as global fossil fuel prices rise amid a fuel crisis. The US Interior Secretary stated the deal is worth almost $1 billion.