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US Government agrees to pay TotalEnergies USD 928 million to relinquish offshore wind leases and redirect funds to oil & gas projects

Development Offshore Wind announced United States Apr 3, 2026
USD928M
Deal Value

The US Department of the Interior agreed to pay TotalEnergies approximately USD 928 million to relinquish offshore wind development leases off New York/New Jersey and North Carolina, marking a controversial shift in federal energy policy. The agreement requires TotalEnergies to redirect the reimbursed fees into oil & gas investments, including a liquefied natural gas (LNG) export facility in Texas, directly linking taxpayer funds to fossil fuel expansion. Lawmakers Alexandria Ocasio-Cortez and Ed Markey have challenged the administration’s authority to use public funds for this purpose, demanding clarification on legal justification and funding sources. The abandoned offshore wind projects had the potential to generate enough electricity to power over 1.3 million homes across New York, New Jersey, and North Carolina, according to the lawmakers’ letter. The deal follows recent milestones in US offshore wind, including the completion of Vineyard Wind 1 in Massachusetts and the start of power delivery from Revolution Wind to Connecticut and Rhode Island, which together provide 1,500 MW of clean energy capacity.

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Timeline

Announced
Apr 3, 2026
Signed
Closed

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