RWE has become the latest European energy company to relinquish its US offshore wind leases under an agreement with the Department of the Interior.
The $1.22 billion settlement covers RWE’s lease interests in the New York Bight and offshore California and Louisiana. RWE said it had invested more than $1 billion in securing and developing the lease areas but concluded that there was no foreseeable route to obtaining the necessary permits.
The company will redirect capital towards other US energy investments. These include a $900 million investment for an indirect 16% interest in the Louisiana LNG project and a $300 million turbine reservation agreement supporting its pipeline of 15 gas-fired peaking-power projects.
The agreement closely follows TotalEnergies’ withdrawal from US offshore wind in March. TotalEnergies relinquished its Carolina Long Bay and New York Bight leases in return for the reimbursement of $928 million in lease fees, committing an equivalent amount to LNG and upstream oil and gas projects in the US.
Together, the settlements illustrate the rapid change in the country’s offshore wind investment environment and the redirection of capital towards natural gas, LNG and dispatchable power generation.
RWE stressed that it remains active in offshore wind internationally, with operating and construction projects and further capacity secured in the UK.
