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Trump Pays TotalEnergies $1B to Break Wind

[ March 25, 2026   //   Gary Burrows ]

TotalEnergies will exit U.S. offshore wind, relinquishing two federal leases and redirecting capital to natural gas and power projects, after reaching a settlement with the U.S. Department of the Interior that includes roughly US$1 billion in reimbursed lease fees.

The company said it will return the Carolina Long Bay and New York Bight leases, both awarded in 2022, ending its offshore wind development efforts in the U.S.

Under the agreement, TotalEnergies will recover its lease payments – about US$1 billion – and reinvest an equivalent amount into U.S. gas and power, including liquefied natural gas exports and upstream production.

The decision follows an internal review that found offshore wind projects in the U.S. are significantly more costly than in Europe and risk raising electricity prices. CEO Patrick Pouyanné said the company sees more efficient uses of capital in the U.S. market.

Investment will shift toward projects including the Rio Grande LNG facility and expanded oil and gas activity, aimed at boosting U.S. supply and exports. The company said the strategy will help meet European LNG demand and support domestic electricity needs, including data center growth.

TotalEnergies also signed a preliminary agreement with Glenfarne to purchase 2 million tonnes per year of LNG from the proposed Alaska LNG project, pending a final investment decision.

The company has invested nearly US$12 billion in the U.S. since 2022, building out its position across LNG, upstream production and power.

The withdrawal reflects a broader pullback in U.S. offshore wind amid rising costs and policy uncertainty and underscores a shift in capital toward fossil fuels and dispatchable energy as federal priorities change.

Tags: TotalEnergies, US Department of the Interior