The Trump administration announced on Wednesday its plan to buy back U.S. offshore wind leases for four more energy projects, increasing its total expenditure on such agreements to nearly $2.6 billion. The latest deal involves Chicago-based Invenergy, which has agreed to terminate its leases for four offshore wind projects that were in the early stages of development, in exchange for reimbursement of lease fees amounting to $765 million.
Previously, Invenergy canceled its largest project, Leading Light Wind, located off the coast of New Jersey, back in November. The other leases involved are situated off the coasts of Maine and California. The company intends to reallocate the funds received from these lease buybacks into natural gas and geothermal projects that can be developed more rapidly.
This strategy of buying back leases aligns with the Trump administration's broader agenda to halt offshore wind farms, which President Donald Trump has openly opposed. The administration's actions reflect a pivot toward investing in fossil fuel projects instead. Following legal challenges that thwarted Trump's attempts to curtail offshore wind development via executive actions, the administration adopted this buyback strategy. Trump's long-standing criticism of wind power, characterizing turbines as unattractive, underscores the administration's stance.
Interior Secretary Doug Burgum commented on the situation, stating, "Under President Trump, companies are shifting investment back toward dependable, secure energy infrastructure that can power our economy and lower utility costs." He praised Invenergy for recognizing the value of baseload power and investing in energy solutions that offer tangible benefits to American consumers.
To date, eight offshore wind projects have been canceled. The first prominent deal emerged in March, involving the French company TotalEnergies, which would receive nearly $1 billion in refunds for its two offshore wind leases—provided that the company invests the funds into fossil fuel projects. These leases were located off the coasts of North Carolina and New York, and New York is currently leading a lawsuit against the TotalEnergies agreement, while Democrats in Congress are investigating it as well.
In April, two other companies, Golden State Wind and Bluepoint Wind, agreed to relinquish their leases in exchange for reimbursements totaling nearly $900 million, contingent upon equal investment in fossil fuels. Both companies had proposed offshore wind farms, with Golden State Wind located off California’s central coast and Bluepoint Wind situated near the coasts of New Jersey and New York. California is also investigating the deal involving Golden State Wind.
Invenergy, recognized as North America’s largest privately held independent power producer, holds four offshore leases, including a significant lease area for the Leading Light Wind and two for floating turbine projects in the Gulf of Maine, as well as one lease for a floating project off California’s coast.
The company's shift is part of its broader strategy to move forward with energy projects that can deliver power to the grid more efficiently than the halted offshore wind leases. Notably, the Trump administration has imposed obstacles on permitting processes for wind energy while facilitating faster development of fossil fuel projects.
Invenergy has not ruled out the possibility of re-engaging in the offshore wind sector in the future. Daniel Runyan, senior vice president for development, noted that during a period of unprecedented energy demand, they aim to invest in projects that can be realized on a commercially reasonable timeline while continuing to explore opportunities as market conditions evolve.
The Leading Light Wind project aimed to generate up to 2.4 gigawatts, which could have supplied power to over one million homes. However, Invenergy informed the New Jersey Board of Public Utilities in November that it was canceling the project due to challenges related to supply chain issues, equipment, vendors, and shifting regulatory requirements. The floating projects were initially in such early development phases that Invenergy had yet to determine their potential power output.
Currently, Invenergy possesses a substantial portfolio of non-offshore wind projects that contribute to electricity generation without exacerbating climate change. This portfolio includes approximately 125 land-based wind farms, over 60 solar projects, and around 30 battery storage solutions, along with numerous other projects in various stages of planning and construction.
