The US Department of the Interior (DOI) has arranged for Bluepoint Wind and Golden State Wind developers to voluntarily end their offshore wind leases. They will receive USD 885 million (approximately EUR 756 million) in return for investing in fossil energy projects.
Bluepoint Wind, a collaboration between Ocean Winds (a joint venture of EDP Renewables and ENGIE) and Global Infrastructure Partners (GIP), had planned a 2.4 GW fixed-bottom offshore wind farm off New York’s coast.
The Golden State Wind project, a 2 GW floating wind farm, was proposed in the Morro Bay Wind Energy Area off California. This is a joint initiative of Ocean Winds and Reventus Power, managed by Ocean Winds.
Under the agreement, GIP will funnel up to USD 765 million, equivalent to its original lease bid, into a US LNG facility. Consequently, the offshore wind lease will be annulled, and lease fees reimbursed.
Golden State Wind will also terminate its Californian lease, recovering about USD 120 million after investing in US oil, gas, energy infrastructure, and/or LNG projects along the Gulf Coast.
The DOI noted that the companies will not pursue new US offshore wind projects, a move similar to TotalEnergies under the Trump administration.
According to the DOI, these agreements align with President Donald Trump’s Energy Dominance Agenda, supporting “affordable and reliable energy” and addressing national security concerns.
The DOI also stated on April 27 that shifting investments to “conventional solutions” supports returns for American taxpayers.
Post-announcement, Oceantic Network highlighted that the reimbursements draw from taxpayer funds and stressed the success of the Vineyard Wind 1 project, which enhanced Massachusetts’ grid capacity.
“Unable to defend its offshore wind actions in court, the administration is using taxpayer dollars to buy foreign companies out of legally executed offshore wind leases. The economic damage and costs to consumers’ pocketbooks are staggering,” said Sam Salustro, SVP of Policy & Market Affairs at Oceantic Network.
“Meanwhile, Massachusetts is demonstrating the opposite path forward: Vineyard Wind is helping to solve the energy affordability crisis, saving ratepayers $1.4 billion over the next twenty years. Communities should celebrate cost savings and homegrown power—not incur more costs because viable American energy projects are being canceled. Until these actions are stopped through legal challenge, consumers will continue to bear the cost of an administration choosing which energy sources are allowed to succeed.”
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Original Story at www.offshorewind.biz