-- The US has reached agreements with two offshore wind developers to terminate projects and redirect investment into conventional energy projects, the US Department of the Interior said on Tuesday.
The Department said Bluepoint Wind and Golden State Wind agreed to voluntarily end their offshore wind leases and instead commit funds to liquefied natural gas and other traditional energy infrastructure.
The agreements follow a similar arrangement with TotalEnergies (TTE) and form part of President Trump's Energy Dominance Agenda, which prioritizes fossil fuel development over renewable energy sources.
US Interior Secretary Doug Burgum said the deals would help shift investment away from what he described as "intermittent, higher-cost" energy projects and toward "affordable, reliable" baseload power.
"Companies are once again investing in secure energy infrastructure that will lower utility bills for American families," Burgum said.
Bluepoint Wind investors, including BlackRock's Global Infrastructure Partners and Ocean Winds, have committed up to $765 million to LNG projects, matching their original bid for the lease. The US, in return, will cancel the lease and reimburse the payment once the investment is deployed.
Golden State Wind, meanwhile, will exit its lease in California's Morro Bay area and can recover about $120 million in fees after committing an equivalent amount toward oil, gas, or LNG projects along the Gulf Coast.
The developers also signaled a broader retreat from US offshore wind. Both entities said they do not plan to pursue new offshore wind projects in the country, underscoring mounting headwinds for the sector amid shifting policy support and rising costs.
The Department of Justice, which helped facilitate the agreements, said the settlements would avoid prolonged litigation and ensure taxpayer funds are not used to subsidize projects deemed unviable without government support.
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