RWE abandons US offshore wind projects in $1.22bn deal

German energy company RWE said Thursday it is abandoning its offshore wind projects in the United States after reaching a $1.22 billion settlement with the US government to give up leases in the New York Bight and off the coasts of Louisiana and California.

RWE cited regulatory hurdles and said there was “no path forward” to permit the projects in the United States for the foreseeable future. The company said it had invested more than $1 billion in obtaining the leases and developing the planned offshore wind farms.

The company said it now plans to reinvest the money in US gas projects. It said it would put $900 million into a liquefied natural gas export terminal project in Louisiana and $300 million into flexible gas-fired power plants to meet peak electricity demand.

RWE also said it plans to invest about €17 billion in the United States over the next six years, aiming to raise its total power generation capacity there from 13 gigawatts to 22 gigawatts by 2031.

The move comes as President Donald Trump has pushed to halt several offshore wind projects. RWE said it would keep a strong international offshore wind presence, with 18 offshore wind farms in operation, four under construction and further projects in development.