On Thursday, renewable energy company RWE announced that it entered into a $1.22 billion agreement with the Trump administration to relinquish its offshore wind leases. RWE is one of two companies, alongside Vineyard Offshore, that hold wind leases off California’s North Coast through its RWE U.S. Offshore subsidiary.According to a press release published by RWE Thursday morning, the company’s settlement with the U.S. Department of Interior will “resolve claims against the U.S. government and relinquish its offshore wind leases off the coasts of New York, California and Louisiana.”“RWE U.S. Offshore secured these leases from the U.S. government with a long-term commitment to develop offshore wind capacity in American waters and invested more than $1 billion toward the leases and the development of these projects,” RWE’s release reads. “These leases provided legal rights to develop offshore projects and represented years of planning, investment, and partnership with federal agencies.“After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future. The settlement resolves RWE U.S. Offshore’s legal claims and provides $1.22 billion in settlement funds. The company determined that this resolution best serves the interests of its stakeholders and allows it to direct resources toward energy projects that can be advanced with certainty.”RWE’s press release says that the agreement will allow the company to “redeploy its capital to accelerate value-accretive opportunities that deliver reliable and affordable energy.” That “redeployment” is described as including “$900 million to acquire an indirect 16% stake in the Louisiana LNG Project” — a large-scale natural gas development that has been criticized as a major source of greenhouse gas pollution — and other natural gas projects throughout the U.S.Keep Reading
