US Pays Germany's RWE $1.22 Billion to Abandon Offshore Wind Leases

German energy company RWE will receive $1.22 billion from the US Department of the Interior in exchange for giving up its rights to build offshore wind farms off New York, California, and Louisiana, Kommersant reported. RWE said it would redirect the money into a $900 million LNG project in Louisiana and $300 million in gas turbines, rather than pursuing the canceled wind projects.

The Hill reported that this is the fifth such deal the Interior Department has struck with wind developers, bringing the government's total buyout commitments above $3.9 billion. The administration describes the arrangement as a dollar-for-dollar repurposing of RWE's own capital rather than new taxpayer spending, though several states that stand to lose the offshore wind capacity are suing over the cancellations.