French Energy Giant Abandons US Offshore Wind in $1 Billion Fossil Fuel Deal
The Trump administration has secured a landmark agreement with French energy company TotalEnergies, which will see the firm relinquish two significant US offshore wind leases in exchange for a $1 billion reimbursement. This substantial deal, announced by the Department of Interior on Monday 23 March 2026, marks a strategic shift as the administration intensifies its campaign against renewable energy sources in favour of traditional fossil fuels.
Wind Projects Halted and Funds Redirected
TotalEnergies has agreed to effectively surrender its leases for offshore wind projects located off the coasts of North Carolina and New York. In a move that has sparked controversy, the company plans to invest the refunded money into fossil fuel projects instead. This includes financing the construction of a liquefied natural gas plant in Texas and expanding its oil and gas activities across the United States.
TotalEnergies CEO Patrick Pouyanné stated that the company is renouncing offshore wind development in the US, citing that such projects are not in the country's best interest. He described the redirection of capital as a more efficient use of resources, aligning with the administration's energy priorities.
Administration's Stance and Legal Challenges
President Donald Trump has consistently championed fossil fuels, arguing they lower costs for families, enhance reliability, and support US global leadership in sectors like artificial intelligence. The administration has previously attempted to halt offshore wind construction through executive orders, though federal judges have overturned these actions, allowing projects to proceed.
Environmental groups have condemned the TotalEnergies deal as an alternative method to obstruct wind energy development. The Natural Resources Defense Council labelled it reckless, while Ted Kelly of the Environmental Defense Fund criticised it as a misuse of taxpayer dollars that deprives Americans of clean, affordable power.
Project Details and Broader Context
The affected projects include the Carolina Long Bay lease, purchased in 2022 for approximately $133,000, with a capacity to generate over 1 gigawatt of power for about 300,000 homes. The larger New York and New Jersey lease, acquired in the same year for $795,000, had the potential to produce 3 gigawatts, powering nearly one million households with clean energy.
This deal contrasts sharply with the Biden administration's efforts to promote offshore wind as a climate change solution. Globally, the offshore wind market is expanding, with China leading in new installations, highlighting the US policy divergence under Trump.
In a related development, the Coastal Virginia Offshore Wind project, previously targeted by the administration, began delivering power to the grid on Monday, demonstrating ongoing resilience in the sector despite political headwinds.
Interior Secretary Doug Burgum welcomed TotalEnergies' commitment, emphasising the importance of dependable, affordable power for American consumers. The reimbursement will be processed after the company makes its fossil fuel investments, up to the amount originally paid for the wind leases.
