WASHINGTON — Two additional energy companies will receive substantial payments from the Trump administration to abandon their offshore wind development projects, officials announced Monday.
The Interior Department revealed that Bluepoint Wind and Golden State Wind have reached agreements to terminate their offshore wind leases in return for compensation totaling approximately $900 million. Both firms have committed to avoiding future offshore wind ventures in American waters.
Bluepoint Wind had been developing an early-stage project in waters off New Jersey and New York, while Golden State Wind was planning a floating wind installation along California’s central coastline.
According to Interior officials, these arrangements mirror the recent agreement with French energy giant TotalEnergies, which received a $1 billion payment in March to abandon developments off North Carolina and New York. That company has redirected its investment toward fossil fuel initiatives.
These agreements emerge after federal courts blocked the administration’s attempts to halt offshore wind development. In December, a federal judge struck down Trump’s executive order stopping wind energy projects, ruling it violated the law. The judge sided with attorneys general from 17 states and Washington, D.C., who contested the directive.
Two weeks following that ruling, the administration directed five major East Coast wind projects to cease construction, citing national security issues. However, developers and states filed lawsuits, and federal judges permitted all five projects to continue, determining the government failed to demonstrate an immediate security threat requiring construction stoppage.
Democratic lawmakers and environmental organizations have raised concerns about the TotalEnergies agreement’s legality and potential negative impacts on America’s economy and environment.
Ocean Winds, a partnership between EDP Renewables and international energy company Engie, holds ownership stakes in both Bluepoint and Golden State projects. Bluepoint’s lease originally cost $765 million, while Golden State Wind can recover roughly $120 million in lease payments, Interior stated.
Interior Secretary Doug Burgum criticized the original lease agreements, claiming companies purchased projects that only remained economically feasible through substantial taxpayer subsidies when they submitted bids in 2022 under former President Joe Biden.
“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Burgum stated. “We welcome each of the projects’ willingness to actually support baseload power and lower utility bills for American families.”
Both wind projects were designed as major installations capable of supplying electricity to over 1 million households upon completion, supporting New Jersey, New York, and California’s renewable energy objectives.
Bluepoint Wind represents a collaboration between Ocean Winds and Global Infrastructure Partners, which is owned by investment firm BlackRock. Global Infrastructure Partners has pledged up to $765 million for a domestic liquefied natural gas facility. Interior plans to cancel the offshore wind lease and reimburse the company for its LNG project investment.
Golden State Wind operates as a joint venture between Ocean Winds and the Canada Pension Plan Investment Board. Under the new agreement, Golden State Wind can reclaim approximately $120 million in lease costs after investing an equivalent amount in oil and gas assets, infrastructure, or Gulf Coast projects.
Company representatives expressed gratitude for the administration’s collaborative approach.
Michael Brown, CEO of Ocean Winds North America, described the agreement as providing “clarity” for the company and its investors. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners and shareholders,” Brown explained.
During his second presidential term, Trump has prioritized fossil fuel development, arguing it will reduce household energy costs, improve grid reliability, and maintain America’s competitive edge in artificial intelligence technology.
