RWE and the US Department of the Interior (DOI) have reached a settlement in which RWE will give up its offshore wind leases in the New York Bight, California, and Louisiana for USD 1.22 billion (around EUR 1.06 billion).
The deal resolves claims by RWE U.S. Offshore against the US government, concluding the company’s development plans for these areas. RWE had invested over USD 1 billion in acquiring and developing these leases, but found “there is no path forward to permit these projects in the U.S. for the foreseeable future.”
RWE did not detail how the USD 1.22 billion settlement relates to its lease payments or development costs. However, the amount is significant compared to previous offshore wind lease terminations under the Trump administration, being the largest settlement announced so far.
In March, TotalEnergies agreed to relinquish its New York Bight and Carolina Long Bay leases for USD 928 million, redirecting funds to US oil and gas investments. In April, agreements were made with Bluepoint Wind and Golden State Wind projects, led by Ocean Winds, terminating their leases for USD 885 million. Bluepoint’s lease was in New York, while Golden State’s covered a floating wind project in California.
In June, Invenergy agreed to relinquish four leases in New York Bight, California, and the Gulf of Maine for USD 765 million, repurposing funds for natural gas and geothermal projects. Duke Energy followed, terminating its Carolina Long Bay lease for USD 129 million, with plans to reinvest in infrastructure in the Carolinas.
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RWE’s US offshore wind portfolio includes approximately 6 GW, featuring the 2.8 GW Community Offshore Wind project near New York and New Jersey, the 1.6 GW Canopy floating wind project off Humboldt County, and a 1.24 GW site off Louisiana.
Last April, RWE’s CEO Marcus Krebber announced a pause in US offshore wind activities due to political uncertainty. This May, discussions surfaced about a similar agreement with the Trump administration, spurring calls from over 50 US organizations for RWE to halt the negotiations.
After the settlement, RWE plans to redeploy capital to more viable energy projects, including a USD 900 million investment for a 16% stake in the Louisiana LNG project and a USD 300 million turbine reservation deal for natural gas projects.
RWE aims to invest EUR 17 billion in the US over six years, boosting its generation capacity from 13 GW to 22 GW by 2031. Announcing the agreement on 6 August, RWE emphasized its focus on expanding offshore wind globally.
“RWE is one of the world’s leading offshore wind developers with 18 operating wind farms, four under construction, and additional projects under development – including 6.9 GW secured in the UK’s recent offshore wind auction,” said the company.
RWE improved its 2026 earnings outlook for the Offshore Wind division after strong performance in the first half of the year, driven by increased electricity generation under favorable conditions. The segment is expected to close with an adjusted EBITDA of EUR 810 million for the first half of 2026, up from EUR 643 million in the previous year.
The rise is attributed to higher production volumes, as wind conditions returned to normal after weak conditions in early 2025. Consequently, RWE raised its full-year adjusted EBITDA guidance for the Offshore Wind division by EUR 100 million, to EUR 1.65 billion-EUR 2.15 billion.
Original Story at www.offshorewind.biz