US Plans $1bn Deal Over Cancelled Wind Leases

The US government is reportedly working on a settlement worth nearly $1 billion to compensate TotalEnergies for the cancellation of two offshore wind leases.

Under the proposed arrangement, the Department of the Interior would revoke leases linked to the Attentive Energy project in the New York Bight and the Carolina Long Bay project off the coast of North Carolina. The Department of Justice would then pay TotalEnergies more than $928 million, effectively covering the company’s original winning bids secured during lease auctions held under the Biden administration.

If finalized, the agreement would bring both projects to an end and remove TotalEnergies from offshore wind developments along the US east coast. It also reflects a broader change in federal direction, building on earlier actions aimed at slowing or halting offshore wind expansion.

There are indications that TotalEnergies may decline the offer. However, the Trump administration is still able to cancel the leases regardless, which could lead to legal disputes. Even if the company chose not to accept the settlement, the projects would still require approvals from an administration that is opposed to wind energy developments.

As part of the proposed deal, TotalEnergies would reportedly agree to speed up investment in natural gas infrastructure in Texas. The company initially acquired the Attentive Energy lease in 2022 for $795 million, while the Carolina Long Bay lease was secured in May of the same year for $160 million.

Following Donald Trump’s election victory in 2024, TotalEnergies had already put both projects on hold, stating it would prioritize opportunities in other markets and potentially return to US developments at a later stage.