Trump Administration Pays TotalEnergies $1 Billion to Halt Offshore Wind Projects
The Trump administration will reimburse French energy giant TotalEnergies approximately $928 million for investments in offshore wind projects off the coasts of New York and North Carolina, effectively halting their development. The funds will be redirected by TotalEnergies towards U.S. Natural gas projects, primarily in Texas, according to an agreement announced on March 23, 2026, by the U.S. Interior Department.
Shift in Energy Strategy
TotalEnergies had put the Attentive Energy and Carolina Long Bay projects on hold after President Trump was elected, anticipating potential challenges. Speaking at CERAWeek by S&P Global in Houston, TotalEnergies chairman and CEO Patrick Pouyanné stated the company is opting for “pragmatic solutions” rather than prolonged litigation. He indicated that while TotalEnergies will continue to invest in onshore wind, solar, and battery storage, offshore wind is now considered too expensive and reliant on federal subsidies in the U.S. Source.
Focus on Natural Gas
The agreement specifically cites increased investment in Houston-based NextDecade’s Rio Grande LNG project in southern Texas, as well as natural gas production in the Gulf of Mexico and U.S. Shale drilling. TotalEnergies holds a 17% stake in NextDecade and is a significant customer of the Rio Grande LNG project. The company also owns a portion of Sempra Energy’s Cameron LNG in Louisiana and has invested in Glenfarne’s planned Alaska LNG project. Source.
Administration’s Stance
U.S. Interior Secretary Doug Burgum, speaking alongside Pouyanné, emphasized the administration’s preference for reliable natural gas projects over “intermittent” wind farms, stating they are “not driven by a climate fantasy.” Burgum attributed the shift to the ending of subsidies for wind and solar projects under the Trump administration’s “One Big Beautiful Bill” approved last year. Source.
Criticism of the Deal
Environmental groups have criticized the deal as a means to obstruct wind projects, with some labeling it a “billion-dollar bribe” to kill clean energy initiatives. Lena Moffitt, executive director of Evergreen Action, stated that the administration has repeatedly attempted to halt offshore wind construction through legal challenges and has now resorted to paying companies to withdraw. Source.
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