The U.S. Interior Department will pay TotalEnergies nearly $1 billion to cancel offshore wind projects and shift investment to Texas natural gas. On March 23, the Trump administration and TotalEnergies reached a $928 million agreement in Houston to end wind farm developments off the coasts of New York and North Carolina. This move ends federal support for large-scale offshore wind in favor of fossil fuel production.
TotalEnergies cancels New York and North Carolina wind farms for $928 million
Patrick Pouyanné, chairman and CEO of TotalEnergies, announced the deal at the CERAWeek event in Houston. The federal government will reimburse the company about $928 million for its work on the Attentive Energy and Carolina Long Bay projects. These projects were located off the coasts of New York and North Carolina.
TotalEnergies stopped these developments after the election of President Donald Trump. The company decided to accept a payout rather than fight the government in court. Pouyanné stated he chose to be pragmatic rather than litigate over the future of the wind farms.
This reimbursement covers the money the French energy giant already spent on the projects. By taking the money now, the company avoids the risk of the government canceling the projects without any payment later. This deal marks a shift in how the federal government handles existing energy contracts.
Trump administration ends renewable subsidies through One Big Beautiful Bill
President Trump has long criticized offshore wind turbines, calling them unsightly and expensive. Last year, the administration passed a law called the "One Big Beautiful Bill." This law ended federal subsidies that previously helped fund wind and solar energy projects.
U.S. Interior Secretary Doug Burgum said the company expected to receive many subsidies that no longer exist. Without this federal money, TotalEnergies found the offshore wind projects too expensive to finish. The company will still work on smaller onshore wind and solar projects that do not require the same level of support.
This policy change reverses years of federal efforts to grow the renewable energy sector. The administration is now using those funds to encourage companies to produce more oil and gas. This shift aligns with the president's goal of making the United States a leader in fossil fuel exports.
Energy workers in coastal states lose projects to Texas gas expansion
The cancellation of these wind farms affects local economies in New York and North Carolina. These states expected the projects to create thousands of construction and maintenance jobs over the next decade. Now, those jobs will not exist as the projects are officially abandoned.
The money will instead flow into the Texas energy sector. TotalEnergies plans to use the $928 million to fund natural gas projects in the Gulf of Mexico and southern Texas. This move benefits gas workers and drilling companies in the Houston area.
Secretary Burgum stated the government is not driven by what he called a "climate fantasy." He argued that natural gas is a more reliable energy source than wind power. This decision prioritizes immediate energy production over the long-term goal of reducing carbon emissions.
TotalEnergies redirects capital to Rio Grande LNG and Gulf drilling
The agreement requires TotalEnergies to move its reimbursed funds into specific U.S. fossil fuel projects. The company will focus on the following areas:
- The Rio Grande LNG export project in southern Texas
- Natural gas production investments in the Gulf of Mexico
- Shale drilling projects across the United States
- Increased support for Houston-based NextDecade
TotalEnergies already owns 17% of NextDecade and is a major customer for its gas exports. By moving money into these projects, the company strengthens its position in the global gas market. This shift helps the U.S. increase its capacity to ship liquefied natural gas to other countries.
The company also holds stakes in LNG projects in Louisiana and Alaska. These investments show that TotalEnergies is doubling down on gas as its primary business in America. The company is trading the uncertainty of wind power for the steady profits of gas exports.
Uncertainty grows for U.S. climate goals as wind projects stall
The loss of nearly $1 billion in wind investment creates a gap in the national plan to reduce carbon. Environmental groups worry that canceling these projects will make the U.S. more dependent on fossil fuels. It is not yet known how the government will replace the clean energy these wind farms were supposed to provide.
Secretary Burgum called wind power "intermittent" because it does not produce electricity when the wind stops blowing. He argued that natural gas provides a more stable supply for the power grid. However, critics point out that gas prices can change quickly, which affects what people pay for electricity.
The administration has not said if it will pay other companies to stop their wind projects. If more companies take similar deals, the U.S. offshore wind industry could disappear entirely. This creates a risky environment for investors who put money into green energy technology.
NextDecade and Gulf shale projects receive new funding priority
TotalEnergies is expected to start moving the reimbursed funds into its gas projects immediately. The company will focus on expanding the Rio Grande LNG facility to handle more exports. This project is a central part of the company's plan to supply gas to Europe and Asia.
The Interior Department confirmed that the agreement is a "landmark" deal for the administration. It serves as a model for how the government wants to move capital away from renewables. More announcements regarding gas production in the Gulf of Mexico are expected in the coming months.
TotalEnergies will continue to operate its existing solar and battery storage sites. However, the company will not start any new large-scale offshore projects under the current administration. The focus remains on "smarter investments" that align with federal energy policy.
Key Numbers and Facts
The confirmed figures behind this story at a glance.
Key Fact Detail Main person or organisation TotalEnergies and U.S. Interior Department Main action or decision Canceling offshore wind projects for natural gas investment Date or period March 23 Location Houston, Texas (Announcement) Amount, figure, or scale $928 million reimbursement Previous status Wind projects in NY and NC were on hold Current status Wind projects canceled; funds redirected to gas Primary effect End of federal offshore wind support in these areas Next confirmed step Investment in Rio Grande LNG and Gulf drilling
Pragmatism replaces litigation in the shift to fossil fuel investment
This agreement shows that energy giants are willing to abandon green goals when the political and financial environment changes. By choosing a payout over a legal battle, TotalEnergies has secured its capital while aligning with the current administration. This deal proves that government policy can move billions of dollars from the coast to the oil fields in a single day.
The shift from wind to gas is a clear signal to the global energy market about U.S. priorities. While the world watches the climate, the U.S. is focusing on the immediate profit and reliability of natural gas. This decision will define the American energy landscape for the next four years.
Frequently Asked Questions
Why is the U.S. government paying TotalEnergies?
The government is reimbursing the company $928 million to stop building offshore wind farms and move that money into natural gas. This payment covers the investments TotalEnergies already made in projects off the coasts of New York and North Carolina. The Trump administration wants to end wind subsidies and focus on fossil fuel production instead.
Which wind projects are being canceled?
The two main projects being abandoned are Attentive Energy near New York and Carolina Long Bay near North Carolina. TotalEnergies had already put these projects on hold following the presidential election. The company will now focus on onshore solar and battery storage while leaving the offshore wind sector.
Where will the $928 million be spent now?
TotalEnergies will invest the reimbursed money into U.S. natural gas projects, primarily in Texas and the Gulf of Mexico. This includes funding for the Rio Grande LNG export project and shale drilling operations. The agreement ensures that the capital stays within the U.S. energy sector but shifts from renewables to fossil fuels.
