- TotalEnergies has exited offshore wind development in the United States after signing settlement agreements with the Department of the Interior.
- The company will redirect recovered lease funds into gas production and LNG projects, including major export infrastructure.
TotalEnergies has signed settlement agreements with the United States Department of the Interior to exit offshore wind development in the country. The company will relinquish its Carolina Long Bay and New York Bight leases awarded in 2022.
With this decision, TotalEnergies will no longer pursue offshore wind projects in the United States. The move marks a strategic shift in its energy investment approach.
Under the agreement, the company will recover the lease fees it previously paid. It will then reinvest an equivalent amount into U.S. gas and power production and export projects.
TotalEnergies said its studies showed that offshore wind projects in the U.S. remain costly. In contrast, the company noted that such projects could negatively affect electricity affordability for consumers. The company added that alternative technologies can meet growing electricity demand more efficiently. As a result, it decided not to allocate further capital to offshore wind in the U.S.
Commenting on the development, Chairman and CEO Patrick Pouyanné said the company supports current U.S. energy policy. He said, “TotalEnergies is pleased to sign these settlement agreements with the DOI and to support the Administration’s Energy Policy. Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees.”
He added that the company will channel the refunded funds into gas investments. These include the construction of the 29 million tonnes Rio Grande LNG plant and expansion of oil and gas activities.
Pouyanné said, “Furthermore, these agreements, under which we will reinvest the refunded lease fees to finance the construction of the 29 Mt Rio Grande LNG plant and the development of our oil and gas activities, allows us to support the development of U.S. gas production and export. “These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development. We believe this is a more efficient use of capital in the United States.”
In addition, TotalEnergies recently signed a Letter of Intent with Glenfarne. The agreement covers the long-term offtake of 2 million tonnes per year of LNG from the Alaska LNG project over 20 years, subject to a final investment decision.
TotalEnergies continues to expand its integrated energy model in the United States. The company has operated in the country since 1957. Since 2022, it has invested nearly $12 billion in U.S. energy projects. These investments focus on oil, LNG, and electricity development. The company also maintains upstream gas production assets in Texas and offshore U.S. regions.