Trump administration pays Bluepoint and Golden State to exit offshore wind

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The U.S. Department of the Interior announced that it will pay Bluepoint Wind and Golden State Wind to end their U.S. offshore wind leases, with reimbursements totaling nearly $900 million, according to the department. Interior said both companies have agreed to stop pursuing offshore wind projects in the United States.

Interior said the arrangement follows what it called a similar model from a prior deal with French energy company TotalEnergies, in which TotalEnergies agreed to what was described as a refund of its leases in exchange for a $1 billion payout and said it would invest the money in fossil fuel projects instead. The administration’s broader effort to block offshore wind has faced court setbacks, including a federal judge vacating President Donald Trump’s executive order blocking wind energy projects in December.

Interior said the agreements come after the administration ordered that construction stop on five major East Coast offshore wind projects, citing national security concerns. Judges later allowed those projects to resume construction, essentially concluding the government did not show the national security risk was so imminent that work had to halt, the announcement said.

In Interior’s account, Bluepoint Wind is in the early stages of development off the coasts of New Jersey and New York, while Golden State Wind is a floating offshore wind project proposed off California’s central coast. Interior also said its Bureau of Ocean Energy Management has rescinded all designated wind energy areas in federal waters, meaning developers would need to buy new leases for any future offshore wind work.

Interior said Bluepoint Wind is co-owned by Ocean Winds, a joint venture between EDP Renewables and French energy giant Engie. The department said Bluepoint’s lease cost $765 million and said it would cancel the offshore wind lease and reimburse the company for the amount invested in a U.S.-based liquefied natural gas facility, describing Ocean Winds North America’s Global Infrastructure Partners partner as linked to an investment of up to $765 million into the LNG project.

For Golden State Wind, Interior said it is also co-owned by Ocean Winds and that it is a joint venture involving the Canada Pension Plan Investment Board. The department said Golden State Wind will be eligible to recover approximately $120 million in lease fees after the same amount is invested in oil and gas assets, infrastructure or projects along the Gulf Coast, under the agreement Interior described.

Interior Secretary Doug Burgum said the companies had been sold a product that he described as only viable with massive taxpayer subsidies at the time they bid for offshore wind leases in 2022, under former President Joe Biden. He also said the administration is welcoming the companies’ willingness to support what he called baseload power and lower utility bills for American families, in a statement included in the announcement.

Senate Minority Leader Chuck Schumer, D-N.Y., criticized the decision in a statement Monday, saying: “Once again, Donald Trump is attacking New York offshore wind at the behest of his fossil fuel donors with no justification.” Schumer called the action “a reckless decision that hurts working families and the economy” and said it will likely increase electricity prices in New York.

Ocean Winds North America CEO Michael Brown said the deal provided “clarity” for the company and its investors. In remarks included with the announcement, Brown said the company’s priority remains “disciplined capital allocation” and delivering reliable energy solutions that he said create long-term value for ratepayers, partners and shareholders.

The Associated Press reported that McDermott filed from Providence, Rhode Island.