TotalEnergies has signed agreements with the US Department of the Interior to relinquish two offshore wind leases and exit offshore wind development in the United States.
The company said the agreements cover the Carolina Long Bay and New York Bight leases awarded in 2022 and include reimbursement of lease fees.
TotalEnergies added it will reinvest an equivalent amount into US gas and power production and export projects.
The decision follows studies indicating offshore wind developments in the US are costly and could impact power affordability compared to other technologies.
“TotalEnergies is pleased to sign these settlement agreements with the DOI and to support the Administration’s Energy Policy. Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees,” said Patrick Pouyanné, chairman and chief executive of TotalEnergies.
“Furthermore, these agreements, under which we will reinvest the refunded lease fees to finance the construction of the 29 Mt Rio Grande LNG plant and the development of our oil and gas activities, allows us to support the development of U.S. gas production and export.”