Trump pays German RWE $1.2 billion
The Trump administration has struck a deal with the energy giant, which will invest in fossil fuels and LNG projects instead of renewables.
The Trump administration has struck a deal with the energy giant, which will invest in fossil fuels and LNG projects instead of renewables.
The U.S. government has reached a $1.2 billion agreement with German energy company RWE, under which the company will halt its offshore wind farm projects in the United States. This move is part of the broader strategy of President Donald Trump's administration, which is systematically shifting away from renewable energy sources toward fossil fuels.
According to information reported by BBC News, RWE will withdraw from the projects following an agreement with the Department of the Interior. The company has confirmed that it is relinquishing concessions off the coasts of California and Louisiana, as well as in the area known as the New York Bight.
RWE has announced that it will reinvest the proceeds, with a significant portion-$900 million-going toward a liquefied natural gas (LNG) export terminal project in Louisiana. Despite abandoning its wind farms, the German company plans to invest a total of around €17 billion in the U.S. over the next six years to increase its production capacity.
"After careful consideration, we concluded that there is no viable path to obtaining permits for these projects in the U.S. in the foreseeable future," RWE said in a statement reported by the BBC.
Interior Secretary Doug Burgum welcomed the deal on X, emphasizing that Americans deserve an energy system based on "common sense" rather than "costly subsidies." "We welcome the agreement with RWE and their voluntary investment in projects that strengthen our nation's energy security," Burgum wrote.
President Trump, known for his open support of the fossil fuel industry, has consistently pursued his campaign slogan "drill, baby, drill." Just days after returning to office, he said he "won't do wind," describing wind turbines as "big, ugly mills" that are dangerous to wildlife.
The agreement with RWE is the latest in a series of moves by the Trump administration aimed at halting offshore wind projects. In March 2026, the Department of the Interior struck a deal with French company TotalEnergies, ending its projects in the U.S. TotalEnergies, however, decided to finance the construction of an LNG terminal in Texas and promote oil extraction in the Gulf of Mexico.
In July 2026, the previous month, authorities also reached a similar deal with Duke Energy of Charlotte, worth $129 million. In response, the company gave up its offshore wind lease in the Carolina Long Bay area.
