RWE abandons its offshore wind projects in the United States and redirects its investments towards gas

German energy company RWE is abandoning its offshore wind farm concessions in the United States, citing a lack of prospects for obtaining the necessary permits. The group now plans to invest $1,2 billion in liquefied natural gas and gas-fired power plants in the US.

RWE has reached a settlement agreement with the U.S. Department of the Interior for $1,22 billion, or approximately €1,06 billion. This transaction is intended to compensate the company for sums invested in its offshore wind projects in the United States.

The agreement covers "RWE's abandonment of its offshore wind concessions in the United States in New York Bay, off the coast of California and Louisiana," the German energy company said in a statement.

Over a billion dollars already invested in offshore wind power

RWE had already invested over a billion dollars in the planning and development of these offshore wind farms. However, the company believes that the current US regulatory environment no longer allows it to pursue these projects.

"After careful consideration, it was concluded that there is currently no way to obtain the necessary permits for these projects in the United States in the foreseeable future." explained the group based in Essen, western Germany.

Since Donald Trump returned to power, known for his skepticism towards climate change and his support for the hydrocarbon industry, several offshore wind projects have been abandoned in the United States, notably by TotalEnergies and Engie.

$1,2 billion redirected to gas projects

RWE now plans to reinvest the released capital in other energy activities in the United States. The group intends to allocate $900 million to liquefied natural gas (LNG) in Louisiana and $300 million to gas-fired power plants, in order to "meet the growing demand for electricity in the United States."

More broadly, the energy company plans to invest approximately €17 billion in the country over the next six years. It intends to increase its electricity production capacity in the United States from the current 13 GW to 22 GW by 2031.

RWE maintains its offshore wind activities outside the United States

Despite this withdrawal from the US market, RWE affirms its intention to continue its international development in offshore wind. The group states that it has "18 wind farms currently in operation, four under construction, and other projects in development."