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US Administration Finalizes $765 Million Deal to Terminate Four Offshore Wind Leases

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The US Department of the Interior Wednesday confirmed a $765 million settlement agreement with affiliates of Invenergy, a US-based power generation company, to terminate four offshore wind leases in the New York Bight, Central Coast of California and the Gulf of Maine.

Invenergy will instead use the sum to develop other domestic energy sources, including geothermal projects in the Western US and natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas, and Missouri, according to the DOI statement.

As energy demand surges, the company "will deploy additional capital into projects that can be delivered on a commercially reasonable timeline and meet customer demand while continuing to evaluate opportunities as market conditions evolve," said Daniel Runyan, Invenergy's senior vice president for development.

The DOI said that, with the latest agreement, Invenergy is supporting national security. It is also seeking cooperation from other companies that are re-evaluating their energy investments.

The settlement is part of the US administration's wider efforts to halt the development of offshore wind projects, which it described as "costly" and "unreliable."

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