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RWE to Exit US Offshore Wind, Shifts Focus to LNG And Gas

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RWE US Offshore said on Thursday it had reached a $1.22 billion settlement with the US Department of the Interior to relinquish its offshore wind leases, as the energy firm moves to redeploy capital into US liquefied natural gas and gas-fired power generation.

The agreement covers RWE's lease rights in the New York Bight, off the coast of California and off the coast of Louisiana, ending its plans to develop offshore wind projects in the areas after realizing that there was no clear path to securing permits in the US in the near term.

"After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future," the utility said in a statement.

RWE said the settlement would allow it to redirect capital toward energy projects with greater certainty as the US power sector faces rising electricity demand.

The German energy firm had invested over $1 billion in acquiring the leases and advancing development work, including years of planning and engagement with US federal agencies.

The company said the settlement resolves its legal claims against the US government and provides funds that will be redeployed into other energy investments.

RWE Americas plans to expand investments in natural gas infrastructure and flexible power generation as part of its shift in US strategy.

The energy firm said it will invest $900 million to acquire an indirect 16% stake in the Louisiana LNG Project, with proceeds from the settlement expected to support construction of the export terminal.

RWE also signed a $300 million turbine reservation agreement to secure future natural gas generation capacity as it develops a pipeline of 15 natural gas peaking projects across US markets.

The investments come as utilities and power producers race to add generation capacity to meet surging electricity demand driven by data centers, artificial intelligence, manufacturing growth and broader electrification.

RWE Americas said it plans to invest around 17 billion euros ($19.59 billion) in the US over the next six years, increasing its generation capacity from about 13 gigawatts across 27 states currently to 22 GW by 2031.

However, despite abandoning the US leases, RWE said it remains committed to offshore wind globally and continues to expand its portfolio. It currently operates 18 offshore wind farms, has four projects under construction, and has secured 6.9 GW of capacity in the latest UK offshore wind auction.

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