German energy company RWE has agreed to abandon several of its wind energy projects in the United States after reaching a $1.2 billion settlement with the U.S. Department of the Interior under President Donald Trump’s administration.
RWE said it would redirect the funds toward conventional gas projects, including approximately $900 million for a liquefied natural gas (LNG) export terminal project in Louisiana, according to the BBC.
“After careful consideration, it was determined that there is no path forward for permitting these projects in the U.S. for the foreseeable future,” RWE said in a statement.
The agreement represents a major setback for the development of offshore and other wind energy projects in the United States, while providing a significant boost to the administration’s push for greater investment in fossil-fuel infrastructure.
Trump has for years criticized wind power and repeatedly mocked wind turbines during campaign rallies and public appearances, describing them as unattractive and questioning their economic and environmental benefits.
U.S. Interior Secretary Doug Burgum defended the administration’s approach, saying Americans deserve an energy system based on what he described as sound economic principles rather than one dependent on “expensive subsidies.”
The Trump administration has made expanding domestic oil and gas production a central part of its energy policy, while seeking to reduce federal support for renewable energy projects.
RWE’s decision to redirect its planned investment toward gas infrastructure highlights the broader shift in U.S. energy policy under Trump, as the administration prioritizes fossil fuels and seeks to limit government support for renewable energy.
