Germany's RWE has reached a $1.22 billion settlement with the U.S. Department of the Interior to relinquish three federal offshore wind leases off New York, California, and Louisiana — the largest such buyout to date and the fifth Trump-era exit deal, bringing total federal commitments to more than $3.9 billion.
New York Bight, California and Louisiana leases surrendered
Announced August 6 from RWE Americas' Austin and Essen offices, the agreement resolves claims RWE had filed against the federal government after concluding there was "no path forward to permit these projects in the U.S. for the foreseeable future." RWE said it had invested more than $1 billion in the three leases, which represented years of planning and interagency coordination.
Capital redeployed to LNG and gas peakers
RWE is redirecting the freed capital into U.S. gas and LNG infrastructure. The company disclosed a $900 million investment for an indirect 16% stake in the Louisiana LNG Project and a $300 million turbine reservation agreement to support a pipeline of 15 natural-gas peaker projects. RWE Americas also affirmed plans to invest roughly €17 billion in the U.S. over the next six years, growing generation from 13 GW today to 22 GW by 2031.
Offshore focus shifts to Europe and UK
RWE emphasized that offshore wind remains central to its global strategy despite the U.S. retreat. The company operates 18 offshore wind farms with four more under construction and holds 6.9 GW of capacity awarded in the UK's most recent AR6 offshore wind auction. The U.S. settlement effectively closes the door on RWE's Empire Wind-adjacent New York Bight, Canopy Offshore Wind (California), and Louisiana leases while cementing a broader industry rotation away from U.S. offshore wind toward European projects and North American gas assets.
Related: Orsted's 2 GW Taiwan offshore project, Vattenfall's Danish offshore tender.
Reporting based on coverage from RWE, Offshore Wind, Maritime Executive, and Bloomberg.