What Happened to TotalEnergies' Exit from US Offshore Wind Projects?

TotalEnergies, a French energy major, initially entered the U.S. offshore wind market with significant ambitions, establishing a joint venture, TotalEnergies SBE US, with Simply Blue Group in October 2021 to explore floating offshore wind potential. The company further solidified its presence in 2022 by securing two major fixed-bottom offshore wind leases through competitive federal auctions. In February 2022, TotalEnergies, in partnership with EnBW, won the New York Bight lease (OCS-A 0538) for $795 million, with plans for the 3 GW Attentive Energy project. Subsequently, in May 2022, TotalEnergies acquired the Carolina Long Bay lease (OCS-A 0545) for $160 million, aiming for a 1 GW project.

However, the path for these projects proved challenging. By early 2024, the Attentive Energy One project in New York faced setbacks when the New York State government decided not to proceed with a contract award. While a second project, Attentive Energy Two, secured a contract with New Jersey in January 2024, the broader political and economic landscape began to shift. Following Donald Trump's election in November 2024, TotalEnergies paused progress on its US offshore wind projects, citing growing political uncertainty around the sector. The Trump administration, advocating for increased domestic fossil fuel production and critical of offshore wind's cost and reliability, initiated efforts to curb such developments.

A pivotal turning point occurred in March 2026. Reports emerged on March 17, 2026, that the US government was drafting agreements to pay TotalEnergies nearly $1 billion to cancel its offshore wind leases. This culminated in a landmark settlement agreement announced on March 23, 2026, between TotalEnergies and the US Department of the Interior. Under the terms, TotalEnergies agreed to relinquish both the Carolina Long Bay and New York Bight leases. In return, the company will recover the lease fees paid, amounting to approximately $928 million. TotalEnergies has committed to reinvesting this equivalent amount into the development of US gas and power production and exports, specifically mentioning the construction of the 29 Mt Rio Grande LNG plant and other oil and gas activities.

The consequences of this deal are significant. TotalEnergies has explicitly stated it will no longer develop offshore wind projects in the United States. The Department of the Interior framed the agreement as redirecting capital from "expensive, unreliable offshore wind leases toward affordable, reliable natural gas projects," aligning with President Trump's "Energy Dominance Agenda." TotalEnergies CEO Patrick Pouyanné echoed these sentiments, stating that studies indicated US offshore wind developments were costly and could negatively impact power affordability, making other technologies more suitable for meeting US electricity demand. As of March 24, 2026, TotalEnergies has officially withdrawn from the US offshore wind sector, marking a substantial shift in its US energy strategy towards fossil fuels.