The Trump administration reached a deal with French energy producer TotalEnergies in which it would return almost $1 billion to end its offshore wind farm projects in the United States. The $928 million reimbursement, which was what TotalEnergies paid for project leases, would instead be invested in U.S. oil and gas projects. According to Interior Secretary Doug Burgum, “The era of taxpayers subsidizing unreliable, unaffordable and unsecure energy is officially over, and the era of affordable, reliable and secure energy is here to stay.”
TotalEnergies will forfeit its leases in federal waters for two wind farms, purchased during the Biden administration, which would have been built off the coasts of New York and North Carolina. The larger of the two wind farms planned by TotalEnergies, known as Attentive Energy, would have been built 54 miles south of Jones Beach, N.Y., providing over 1,300 megawatts of wind capacity to N.Y. and New Jersey. The smaller wind project, Carolina Long Bay, would have been located 22 miles south of Bald Head Island, North Carolina.
Instead, the company would invest the money in oil and gas projects in the United States, including the development of four trains at the Rio Grande liquefied natural gas (LNG) plant in Texas, upstream oil and gas production, and new power plants. According to Patrick Pouyanné, chairman of the Board of Directors and CEO of TotalEnergies, “These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development. We believe this is a more efficient use of capital in the United States.”
Northeast Governors are Turning to Natural Gas
As the Trump administration has hindered offshore wind projects, Democratic governors in the Northeast are increasingly supporting natural gas projects to address rising energy costs, a shift from a previous focus solely on renewable energy, as seen from Massachusetts Governor Maura Healey, New York Governor Kathy Hochul, and Connecticut Governor Ned Lamont. These northeast states are forced to seek other energy sources.
According to E&E News, Governor Hochul has pivoted to an “all of the above” energy strategy due to President Trump’s opposition to offshore wind. Delays to the development of offshore wind off New York’s coast could force the state to repower natural gas plants to serve the New York City region. Recently, Hochul has voiced concern that state climate goals were “unrealistic,” and has floated plans to soften state emissions targets.
According to The New Republic, at a press conference held by Governor Healey to address concerns around spiking utility bills, she indicated that the state needed to import more fracked gas from out of state. She referenced a $300 million project to increase natural gas infrastructure in the state via Enbridge’s Algonquin Gas Transmission Pipeline. For years, Massachusetts has blocked gas pipelines that could have alleviated spiraling energy prices long ago. Healey has bragged about stopping two gas pipelines from entering the state while she was attorney general.
In Connecticut, which was also looking into offshore wind, spiking electric prices have also changed the rhetoric. “Connecticut is committed to ensuring that our electric grid is reliable, resilient and that our energy costs become more affordable,” Rob Blanchard, director of communications for Governor Lamont, wrote in a statement. “Offshore wind and other renewables are central to that effort, but it must be complemented by a diverse mix of resources, including nuclear power, natural gas, hydropower, and other technologies.… We will continue to engage with the federal government on shared energy priorities.”
The deal with TotalEnergies also leaves New Jersey without any feasible offshore wind projects, as Democratic Governor Mikie Sherrill is looking for more “clean energy.” Sherrill’s predecessor, Phil Murphy, had approved a series of offshore wind projects that ran into financial and/or permitting challenges. The state approved Attentive Energy’s project in early 2024 as part of an attempt to reset the industry, which was already in trouble due to escalating costs and legal challenges.
Analysis
According to TotalEnergies, it made the deal because offshore wind was “not the most affordable way to produce electricity” and would require federal subsidies that the Trump administration is phasing out. The deal saves taxpayers years of subsidy payments that would have been due if the projects had been completed in accordance with federal tax rules.
Offshore wind energy is one of the most expensive technologies currently being built to generate electricity. According to the Energy Information Administration, offshore wind is almost three times as expensive as onshore wind and solar PV. Clearly, it is not a good value for consumers.
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