RWE U.S. Offshore has reached a $1.22 billion settlement with the U.S. Department of the Interior and will relinquish offshore wind leases in New York Bight, off California and off Louisiana.

The agreement resolves claims brought by RWE U.S. Offshore against the U.S. government. The company said it determined that the projects could not move forward through the U.S. permitting process for the foreseeable future.

RWE U.S. Offshore had invested more than $1 billion in the leases and development of the associated offshore wind projects.

Following the settlement, RWE Americas plans to direct capital toward other U.S. energy projects.

The company plans to invest $900 million to acquire an indirect 16% stake in the Louisiana LNG Project. RWE said the proceeds will be used to fund construction of the terminal.

RWE Americas has also signed a $300 million turbine reservation agreement to secure future generating capacity for its flexible power generation activities in the United States.

The company is developing 15 natural gas peaking projects across target markets in the country.

In addition, RWE Americas plans to invest approximately €17 billion in the United States over the next six years. Its generation capacity is planned to increase from approximately 13 GW across 27 states to 22 GW by 2031.

In 2025, RWE Americas commissioned 2 GW of new generation capacity in the United States.

RWE said it remains focused on expanding its offshore activities globally. The company has 18 offshore wind farms in operation and four under construction, with additional projects in development.

These projects include 6.9 GW of capacity secured in the United Kingdom’s most recent offshore wind auction.