The Trump administration has agreed to pay nearly $900 million to two offshore wind energy companies to cancel their leases and halt development. Bluepoint Wind and Golden State Wind have agreed to end their projects off the coasts of New York, New Jersey, and California, respectively, in exchange for reimbursements. The Interior Department announced the deals on Monday, stating that the companies will also invest the reimbursed funds in fossil fuel projects.
Bluepoint Wind, a joint venture between Ocean Winds and BlackRock’s Global Infrastructure Partners, will receive up to $765 million to cancel its lease off New York and New Jersey. In return, the company has agreed to invest the funds in a liquefied natural gas (LNG) facility. Golden State Wind, which had proposed a floating offshore wind project off California’s central coast, will receive roughly $120 million to cancel its lease. The company must also invest an equal amount in U.S. oil and gas assets, energy infrastructure, or LNG projects along the Gulf Coast.
The agreements follow a similar deal in March with TotalEnergies, which received $928 million to cancel its offshore wind leases off North Carolina and New York. The French energy company agreed to invest the funds in fossil fuel projects instead. The Trump administration has faced legal challenges to its efforts to block offshore wind development. In December, a federal judge ruled that the administration’s executive order blocking wind energy projects was unlawful. Two weeks later, the administration ordered a halt to construction on five major East Coast offshore wind projects, citing national security concerns. Federal judges later allowed construction to resume after developers and states sued, concluding that the government did not prove an imminent national security risk.
Environmental groups and Democrats have criticized the administration’s actions, questioning the legality of the deals and their potential harm to the U.S. economy and environment. Senate Minority Leader Chuck Schumer (D-N.Y.) called the decision to stop Bluepoint Wind “reckless.” Interior Secretary Doug Burgum defended the agreements, stating that the companies were initially sold leases that were only viable with taxpayer subsidies. He added that the deals allow companies to invest in “affordable, reliable, secure energy infrastructure.”