German energy company RWE will abandon its offshore wind projects in the United States after reaching a $1.2 billion payout agreement with President Donald Trump’s Department of the Interior. The company will relinquish leases off the coasts of California, Louisiana and the New York Bight, saying there was no foreseeable path to securing permits for the projects.

RWE plans to redirect the investment toward conventional energy projects, including about $900 million for a liquefied natural gas export terminal in Louisiana. Despite ending the wind projects, the company said it expects to invest around €17 billion in the US over the next six years to expand its generation capacity.

The deal is the latest move by the Trump administration to curb offshore wind development and encourage fossil fuel investment. Similar agreements have been reached with TotalEnergies and Duke Energy this year, with the companies redirecting planned offshore wind investments toward LNG and conventional oil and gas projects.

Pic courtesy: google/ images are subject to copyright