TotalEnergies abandons U.S. offshore wind for $928M fossil fuel push

TotalEnergies has reached a settlement with the U.S. Department of the Interior to exit all its offshore wind leases in the country. The deal includes a refund of around $928 million, which the company originally paid for the leasing rights. These funds will now be redirected toward oil, gas, and LNG projects in the United States.

The company's shares fell by 1.03% after the announcement was made public.

Under the agreement, TotalEnergies will give up two offshore wind leases: Carolina Long Bay and New York Bight. The federal government will cancel these leases once the company confirms its investment in the designated oil and gas developments.

The refunded $928 million will primarily fund four new production units, known as trains, at the Rio Grande LNG plant in Texas. Additional investments will go toward conventional oil production in the U.S. Gulf and shale gas operations. These projects will build on TotalEnergies' existing infrastructure, including LNG export facilities in Texas and upstream assets in the Gulf of Mexico and shale regions like Texas and Oklahoma. The settlement aligns with the Trump administration's 'Energy Dominance Agenda', which has criticised offshore wind as costly and unreliable. TotalEnergies has also pledged not to pursue any future offshore wind projects in the U.S. CEO Patrick Pouyanné described the shift as a more efficient use of capital for the company's American operations. The investments are expected to begin in 2026, following final confirmation of the oil and gas projects.

The settlement marks a clear shift in TotalEnergies' U.S. strategy, moving away from offshore wind to focus on fossil fuel developments. The $928 million refund will be reinvested into LNG, oil, and shale gas projects, with operations set to start in 2026. The company's decision also reflects broader policy priorities under the current administration's energy agenda.