Trump administration will reimburse company for fossil fuel investment as it ditches wind

The Trump administration and French oil major TotalEnergies announced an agreement Monday under which the government would reimburse the company for oil and gas investments as the company abandons investments in wind power off the U.S. coast.

The administration said in a press release that the company would invest about $1 billion in oil, gas and liquified natural gas (LNG) production in the U.S. and the federal government would reimburse it “dollar-for-dollar, up to the amount they paid in lease purchases for offshore wind.”

In addition to giving up its leases off the coasts of the Carolinas and New York, Total pledged not to develop any new U.S. offshore wind projects.

“This agreement is yet another win for President Trump’s commitment to affordable and reliable energy for all Americans,” said Interior Secretary Doug Burgum in a written statement. 

Patrick Pouyanné, chairman of the Board of Directors and CEO of TotalEnergies, said in a statement that the company “is pleased to sign this settlement agreement with the [Interior Department] and to support the Administration’s Energy Policy.”

Pouyanné said that the funds will finance the construction of its Rio Grande LNG plant as well as oil and gas activities.

“These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development,” Pouyanné added.

The move marks a new strategy in the Trump administration’s latest efforts to both stifle offshore wind and bolster fossil fuel production.

Previously, the administration sought to revoke construction permits for major offshore wind farms, but those efforts faced court setbacks. 

After Trump was elected, Total said it would pause plans to build an offshore wind project near New York, though it said at the time that it would hold onto the lease, preserving the option to restart it in the future.

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