❓WHAT HAPPENED: The Trump administration is paying $928 million to TotalEnergies to cancel its offshore wind farm leases off the coasts of New York and North Carolina.
👤WHO WAS INVOLVED: TotalEnergies, the Trump administration, the Interior Department, the Department of Justice (DOJ), and New York Governor Kathy Hochul (D).
📍WHEN & WHERE: The deal was announced on Monday and involves federal waters off New York and North Carolina.
💬KEY QUOTE: TotalEnergies CEO, Patrick Pouyanné, stated that offshore wind was deemed “not the most affordable way to produce electricity” and that pursuing it in the U.S. was too expensive.
🎯IMPACT: Funds intended for renewable energy are being redirected to fossil fuel projects, sparking criticism from environmentalists.
The Trump administration announced a $928 million deal with French energy company TotalEnergies to cancel offshore wind farm leases in federal waters off New York and North Carolina. The agreement was revealed by the Interior Department and involves a refund of the lease payments made under the former Biden government.
In return, TotalEnergies has committed to redirecting the refunded monies into oil and gas projects, including ramping up oil production in the Gulf of America and building additional gas-fired power plants to meet data center electricity demand. The company’s CEO, Patrick Pouyanné, stated that offshore wind was deemed “not the most affordable way to produce electricity” and that pursuing it in the U.S. was too “expensive.”
Environmentalists have criticized the deal, arguing that funds meant for renewable energy are now being funneled into fossil fuel projects. New York Governor Kathy Hochul (D) condemned the agreement, calling it “an outrageous abuse of taxpayer dollars.”
The Department of Justice (DOJ) is expected to use its Judgment Fund to cover the costs of the agreement.
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