“Trump administration to pay German firm $1.2bn to halt US wind projects”
What actually happened
RWE has agreed to give up three offshore wind leases, off New York, California and Louisiana, in a deal with the US Department of the Interior. Other outlets covering the same announcement confirm the direction of the payment: Germany's energy giant RWE and the Trump administration have reached a settlement agreement that calls for the Department of the Interior to pay RWE $1.22 billion to relinquish three U.S. offshore wind leases and instead invest in LNG energy projects, making it the fifth such deal by the Department of the Interior, committing to reimburse more than $3.9 billion. RWE will redirect that money into fossil-fuel projects in the US.
Key facts
- Government payout: $1.22bn to RWE for three leases (NY Bight, California, Louisiana), the Department of the Interior to pay RWE $1.22 billion to relinquish three U.S. offshore wind leases and instead invest in LNG energy projects.
- Sunk-cost context missing from BBC's piece: RWE, through a joint venture Bight Wind, bid $1.1 billion in 2022 for a lease in the NY Bight alone, before adding California and Louisiana leases, so the payout is closer to a partial refund than a windfall.
- Redirected spend: RWE has said it is investing $900 million in a liquefied natural gas project in Louisiana and spending $300 million on natural gas turbines, roughly matching the settlement value.
- Cumulative pattern: this is the latest agreement in a series, and brings the total amount spent on similar settlements to nearly $4 billion.
- Precedent set in March 2026 with TotalEnergies, where the Trump administration paid $1 billion to a French company to walk away from two U.S. offshore wind leases, redirected into LNG and Gulf oil projects.
What to watch for
Watch for state lawsuits over these buybacks (California has signalled intent to sue) and for court rulings on the underlying wind moratorium, since the administration has lost court cases where it attempted to suspend work on under-construction offshore wind energy projects. Also watch whether future coverage names the taxpayer cost explicitly, since critics like Senator Schumer called an earlier version of this tactic a "misuse of taxpayer dollars."
