RWE is reportedly contemplating a deal with the Trump administration to relinquish US offshore wind leases in return for commitments linked to fossil fuel investments. This has led over 50 US organizations to urge the company to cease the alleged negotiations.
In a letter to RWE CEO Markus Krebber, the groups advised against “trading renewable for fossil fuel investments”, arguing that abandoning offshore wind could present financial risks and damage RWE’s reputation.
“We urge RWE not to agree with an administration that disregards legal norms or climate realities. The Trump administration is temporary. Yielding to its fossil fuel preferences sets a dangerous precedent and poses a serious reputational risk to RWE,” the letter states.
The organizations criticized the Trump administration’s reported attempts to steer offshore wind leaseholders towards US LNG infrastructure, pointing out that offshore wind is “cheaper and more reliable than LNG.”
If RWE proceeds with an offshore wind exit agreement with the US government, it would be the third developer to do so, following TotalEnergies and Ocean Winds, which have relinquished their offshore wind lease areas in exchange for lease payment refunds and commitments to invest in US fossil fuel projects.
Before reports of RWE’s potential deal, a US offshore wind industry source told offshoreWIND.biz these agreements are not finalized and face scrutiny, suggesting they might not be legal.
This sentiment was echoed by the 50 groups contacting RWE, stating there is “no basis under U.S. law” for the federal government to refund legally acquired offshore wind leases.
The letter further highlighted RWE’s LNG investments, including agreements related to Port Arthur LNG, Texas LNG, and the Brunsbüttel LNG terminal, emphasizing that these projects contradict the company’s climate commitments and pose environmental justice concerns.
RWE holds a 6 GW offshore wind seabed portfolio in the US, including the Community Offshore Wind project off New York and New Jersey, and the 1.6 GW Canopy floating wind project off California’s Humboldt County coast.
Last April, RWE CEO Markus Krebber announced a pause on US offshore wind activities due to political uncertainties.
In Europe, RWE, alongside TotalEnergies and Ocean Winds, continues developing and operating offshore wind farms, achieving new milestones recently. TotalEnergies has applied for a 1.5 GW project in France, and Ocean Winds completed the construction of an offshore wind farm in France, with planning consent for a 2 GW farm in Scotland.
RWE is nearing the completion of its 1.4 GW Sofia offshore wind farm in the UK, has started working on new CfD-awarded projects, and secured development consent for two new offshore wind farms. The company is also close to completing Denmark’s largest offshore wind farm, Thor, and is building a 1.6 GW project in Germany.
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Original Story at www.offshorewind.biz