The Trump administration has reached agreements to cancel two US offshore wind projects, with Bluepoint Wind and Golden State Wind set to receive nearly $900 million combined for ending their leases.
Under the deals, both companies will stop their current offshore wind plans and end any plans for future US offshore wind projects.
Bluepoint Wind was an early-stage project planned off New Jersey and New York. Golden State Wind was designed as a floating offshore wind project off California’s central coast.
The US Department of the Interior said the agreements follow the same structure as a recent $1 billion settlement with TotalEnergies, which exited offshore wind leases near North Carolina and New York in March. Under that deal, TotalEnergies agreed to return the leases and direct the funds toward fossil fuel investments.
Interior Secretary Doug Burgum said the leases depended on large taxpayer support and defended the latest settlements as part of a shift toward energy infrastructure the administration describes as affordable, reliable, and secure.
For Bluepoint Wind, the lease will be cancelled, and the company may be reimbursed up to $765 million. Global Infrastructure Partners, part of BlackRock and a partner in Bluepoint Wind, has committed to invest the money in a US-based LNG facility.
Golden State Wind may recover around $120 million in lease fees after investing the same amount in oil and gas assets, related infrastructure, or LNG projects along the Gulf coast.
The two projects had been planned as large offshore wind developments, each with the potential to supply more than 1 million homes. They were also expected to support clean-energy goals in New Jersey, New York, and California.
Associate Attorney General Stanley E. Woodward said the Department of Justice supported the agreements to avoid prolonged litigation and advance the president’s energy agenda.
