USA to Pay TotalEnergies Nearly $1 Billion to Stop Offshore Wind Farms

The US government under President Donald Trump has reached an unusual agreement with French energy company TotalEnergies: the company is returning its two offshore wind licenses off the American East Coast and will receive a reimbursement of approximately $928 million, provided it first invests that amount in fossil energy projects in the United States. The agreement was announced by the US Department of the Interior on March 23, 2026.

The Agreement in Detail

TotalEnergies acquired two offshore wind licenses in 2022: one for the “Carolina Long Bay” project off the coast of North Carolina for approximately $133 million, and another in the “New York Bight” area off New York and New Jersey for $795 million. Together, the projects were intended to generate several gigawatts of clean energy and supply hundreds of thousands of households.

Under the new agreement, TotalEnergies commits to investing approximately $928 million in the following projects:

• The expansion of Trains 1 through 4 of the Rio Grande LNG facility in Texas
• The development of conventional oil reserves in the Gulf of America
• The development of shale gas production in the United States

Upon completion of these investments, the US government will reimburse TotalEnergies the corresponding amount, up to a maximum equal to the license fees originally paid. Additionally, the company has committed to no longer developing any new offshore wind projects in the United States.

TotalEnergies Explains the Decision

CEO Patrick Pouyanné explained the decision in an official statement:

“TotalEnergies is pleased to sign this settlement agreements with the DOI and to support the Administration’s Energy Policy. Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees Furthermore, these agreements, under which we will reinvest the refunded lease fees to finance the construction of the 29 Mt Rio Grande LNG plant and the development of our oil and gas activities, allows us to support the development of U.S. gas production and export. 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.”

Reactions from Politics and Environmental Groups

Interior Secretary Doug Burgum welcomed the agreement as a win for American consumers. Criticism came from Democratic governors of the affected states. New York Governor Kathy Hochul described the agreement as a “pay-not-to-play scheme” and an “egregious misuse of taxpayer dollars.” North Carolina Governor Josh Stein called the deal “a terrible deal for the people of North Carolina and our country.”

Environmental organizations reacted sharply. Lena Moffitt of the organization Evergreen Action commented: “After Trump repeatedly failed in court with his illegal construction stops, he has found another way to strangle offshore wind: he is paying companies to walk away.” Ted Kelly of the Environmental Defense Fund spoke of an “egregious misuse of taxpayer dollars” that denies Americans access to clean and affordable energy.

Background: Trump’s Course Against Offshore Wind

The Trump administration had been attempting to halt the expansion of offshore wind energy since taking office. It issued construction stops for major wind farm projects on the East Coast on multiple occasions, which were repeatedly overturned by federal courts. In parallel, the administration is pushing for an expansion of oil, gas, and coal production, which it describes as the key to lower energy prices and global competitiveness in the field of artificial intelligence.

On the very same day the agreement with TotalEnergies was announced, energy provider Dominion Energy reported that its offshore wind farm “Coastal Virginia Offshore Wind” had fed electricity into the grid for the first time. TotalEnergies continues to be involved in major offshore wind projects in Europe and Asia.