The US Department of the Interior has reached a settlement with Invenergy affiliates to terminate four offshore wind leases and redirect $765 million into other domestic energy projects.
The department said the agreement is intended to strengthen American energy security and lower costs.
It added that the leases were located in the New York Bight, Central Coast of California and the Gulf of Maine.
The $765 million will be redirected towards natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas and Missouri, as well as geothermal projects in the western US.
The settlement provides partial reimbursement for offshore wind leases that required significant taxpayer support.
“President Trump is committed to unleashing affordable, reliable American energy for our country’s communities and putting the American people first through common-sense action,” said Doug Burgum, secretary of the Interior.
“The offshore wind leases were sold under the assumptions that taxpayers would indefinitely subsidize costly, unreliable projects and that no national security concerns were implicated – both assumptions have since been proven false.”
“Today marks a significant step in advancing President Trump’s energy agenda and lowering energy prices for Americans,” said Stanley Woodward, associate attorney general at the Department of Justice.
“By ending these offshore wind leases and pivoting investment toward dependable natural gas infrastructure in multiple states, Invenergy is helping revitalize American energy and national security.”
Invenergy said it will deploy additional capital into projects that can be delivered on a commercially reasonable timeline while continuing to evaluate opportunities as market conditions evolve.