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Waters Off Block Island Host America's First Offshore Wind Farm

In an aerial view, wind turbines generate electricity on July 7, 2022 near Block Island, Rhode Island.

(Photo by John Moore/Getty Images)

'Relentless in Its War on Offshore Wind,' Trump Admin Kills More Projects

After RWE disclosed its new gas investments as part of the deal, one climate campaigner declared that "committing to reinvest over $1 billion in fossil fuels is a disastrous mistake."

Despite climate concerns and high prices from President Donald Trump's illegal war on Iran, his administration continued its assault on offshore wind this week, using another "taxpayer-funded bribe" to convince a company to instead invest in fossil fuels.

The German company RWE announced Thursday that it had reached a settlement with the US Department of the Interior to relinquish offshore wind leases off the coasts of New York, California, and Louisiana for $1.22 billion.

"After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future," the firm said in a statement. "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 also disclosed that it would put $900 million toward an indirect 16% stake in a Louisiana liquefied natural gas project, and $300 million toward turbines for a pipeline of 15 natural gas peaking projects across target US markets.

Reuters reported that the deal is "the fifth, and largest, the administration has entered into this year as part of its wide-ranging effort to stop development of US offshore wind projects," which Trump has fought against since before becoming president. His current term has featured various moves collectively condemned as a "war against renewables."

The RWE deal was ripped by climate and labor advocates, as well as Senate Minority Leader Chuck Schumer (D-NY), who said that "everything the Trump administration does can be summed up in four words: CORRUPTION AT YOUR EXPENSE."

"Trump is again spending billions of taxpayer money to limit the US energy supply in favor of exporting more energy to countries like China," Schumer wrote on social media. "This will only make your utility bill MORE expensive."

Interior Secretary Doug Burgum fired back at Schumer, claiming that "your climate extremist energy 'transition' was actually energy SUBTRACTION," and "ZERO taxpayer money will be spent. It's a dollar-for-dollar repurposing of RWE's own money."

RWE explained that it had "invested more than $1 billion toward the leases and the development of these projects," and the new agreement resolves the company's "legal claims and provides $1.22 billion in settlement funds."

House Natural Resources Committee Democrats Ranking Member Jared Huffman (D-Calif.) joined Schumer and other critics in railing against the deal, saying Friday: "Trump just paid RWE over $1 BILLION in taxpayer money to walk away from offshore wind projects—including a project off Humboldt in my district—and invest in fossil fuels instead."

"This fake, illegal settlement kills good-paying jobs, raises electricity costs, and rewards Big Oil with taxpayer dollars," he continued. "When the accountability comes, and I promise you it's coming, everyone involved in these deals will answer for it."

This potential settlement has been feared for months. In May, over 50 US groups "alarmed to learn that RWE was contemplating a deal" sent a letter urging CEO Mark Krebber to resist the Trump administration's "bullying" and "vendetta against offshore wind."

Among those organizations was Friends of the Earth US, whose senior energy campaigner Raena Garcia declared Friday that "committing to reinvest over $1 billion in fossil fuels is a disastrous mistake."

"The Trump administration won't be around forever, and any company that cuts a deal like this should expect accountability eventually," Garcia added.

The BlueGreen Alliance, which brings together environmental groups and labor unions, has a webpage tracking the costs of the buyouts, which so far include $3.9 billion in taxpayer money, 21.15 gigawatts of anticipated energy, and over 57,000 projected jobs.

"The Trump administration is relentless in its war on offshore wind," alliance executive director Jason Walsh said of the latest deal. "Billions of taxpayers' dollars have gone to waste along with tens of thousands of lost potential jobs. At a time when energy demand and costs are rising, we are disheartened by this latest buyout. Now working people on three coasts will no longer get to reap the benefits of the clean and reliable energy that would have come from these projects."

The settlements still face legal hurdles. New York Attorney General Letitia James announced in June that she is leading a coalition that includes AGs from Connecticut, Maine, Massachusetts, New Jersey, Rhode Island, and Vermont in a lawsuit seeking to block one of them. California Attorney General Rob Bonta has sent a notice of intent to sue over another deal.

Despite Big Oil-backed Trump's attacks on renewables and support for climate-wrecking fossil fuels, new data shows that the United States is generating more power from the sun and wind than ever, as Common Dreams reported earlier Friday.

For example, in May, solar generation eclipsed every other source of electricity in Utah for the first time. Weber State University physics professor Dan Schroeder said that is "wonderful news for air quality, it's wonderful news for the climate, and it's wonderful news for jobs and the economy."

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