What Happened to US and TotalEnergies Offshore Wind Projects Deal?
TotalEnergies, a French energy major, initially secured two significant offshore wind leases in the US in 2022, aiming to develop projects in the New York Bight and Carolina Long Bay. However, by March 2026, the company signed settlement agreements with the US Department of the Interior to relinquish these leases, receiving approximately $928 million in reimbursement. TotalEnergies has pledged to exit the US offshore wind market and reinvest the funds into US oil and gas production and LNG exports, aligning with the current US administration's energy policy shift.
Quick Answer
On March 23, 2026, TotalEnergies and the US Department of the Interior finalized an agreement for the French energy company to relinquish its two offshore wind leases in the New York Bight and Carolina Long Bay. TotalEnergies will be reimbursed approximately $928 million and has committed to investing an equivalent amount into US oil and gas production, including the Rio Grande LNG plant. This deal marks TotalEnergies' exit from US offshore wind development, citing high costs and a strategic pivot towards fossil fuels supported by the current US administration.
📊Key Facts
📅Complete Timeline9 events
TotalEnergies Forms US Floating Offshore Wind Joint Venture
TotalEnergies and Simply Blue Group launched TotalEnergies SBE US, a joint venture dedicated to developing floating offshore wind power projects along US coasts.
TotalEnergies Wins New York Bight Offshore Wind Lease
TotalEnergies, in a joint venture, secured the OCS-A 0538 lease area in the New York Bight auction for $795 million, with a potential capacity of 3 GW.
TotalEnergies Wins Carolina Long Bay Offshore Wind Lease
TotalEnergies secured offshore wind lease OCS-A 0545 in Carolina Long Bay for $160 million, with a potential to generate 1 GW of electricity.
Joint Venture Formed for Attentive Energy Project
TotalEnergies formed a joint venture for the development of the Attentive Energy offshore wind project off the coast of New York, further progressing its plans.
Attentive Energy Two Awarded New Jersey Contract
A component of the Attentive Energy project, 'Attentive Energy Two,' was awarded a contract with New Jersey, indicating progress in securing power purchase agreements.
Attentive Energy Construction Operation Plan Submitted, Reviews Paused
Attentive Energy submitted its Construction Operation Plan (COP) to the Bureau of Ocean Energy Management (BOEM), but the Trump administration subsequently paused the review process.
TotalEnergies Pauses US Offshore Wind Projects Post-Election
Following Donald Trump's victory in the US presidential election, TotalEnergies announced it had paused the development of its US offshore wind farms, citing political uncertainty.
Reports Emerge of US Government Settlement Offer
News outlets reported that US officials were drafting agreements to pay TotalEnergies nearly $1 billion to cancel its offshore wind leases in New York and North Carolina.
TotalEnergies Exits US Offshore Wind, Reinvests in Oil & Gas
The US Department of the Interior and TotalEnergies signed settlement agreements to terminate the company's two offshore wind leases. TotalEnergies will be reimbursed $928 million and pledged to invest an equivalent amount in US oil and gas production and LNG exports, marking its exit from US offshore wind development.
🔍Deep Dive Analysis
TotalEnergies, a global multi-energy company, entered the burgeoning US offshore wind market in 2022, securing two key lease areas: OCS-A 0538 in the New York Bight (through its Attentive Energy joint venture) and OCS-A 0545 in Carolina Long Bay. These acquisitions, costing $795 million and $160 million respectively, positioned the company to potentially generate over 4 GW of clean energy for millions of US homes. The New York Bight lease, in particular, was part of a record-setting auction under the Biden administration, signaling a strong federal push for renewable energy.
However, the landscape for offshore wind in the US began to shift, particularly following the 2024 US presidential election. TotalEnergies, in November 2024, announced a pause in its US offshore wind projects, citing growing political uncertainty and a need to reassess market conditions. This pause came amidst broader challenges faced by the US offshore wind industry, including rising costs, supply chain issues, and increasing opposition from the new Trump administration, which expressed skepticism about the economic viability and environmental impact of offshore wind.
The key turning point arrived in March 2026. Reports surfaced that the US government was drafting agreements to compensate TotalEnergies for the cancellation of its leases. On March 23, 2026, these agreements were officially signed between the US Department of the Interior and TotalEnergies. Under the terms, TotalEnergies agreed to relinquish both the Carolina Long Bay and New York Bight leases. In return, the company will recover approximately $928 million in lease fees. This move was framed by the US administration as a win for 'affordable and reliable energy,' with Secretary of the Interior Doug Burgum characterizing offshore wind as 'expensive, unreliable, environmentally disruptive, and subsidy-dependent.'
As a consequence of this deal, TotalEnergies has explicitly pledged not to develop any new offshore wind projects in the United States. Instead, the reimbursed funds, totaling $928 million, will be reinvested by TotalEnergies into US gas and power production and exports. Specific projects include the development of Trains 1-4 of the Rio Grande LNG plant in Texas, as well as upstream conventional oil in the US Gulf and shale gas production. TotalEnergies CEO Patrick Pouyanné stated that the company's studies indicated US offshore wind developments were costly and less competitive than other available technologies for meeting electricity demand, aligning with the administration's stance. This agreement represents a significant policy shift by the Trump administration, opting to financially unwind leases rather than face protracted legal battles over halting existing projects.
What If...?
Explore alternate histories. What if US and TotalEnergies Offshore Wind Projects Deal made different choices?