RWE to hand back US offshore wind leases

The US government has reached an agreement to pay RWE $1.22bn to vacate a trio of offshore wind leases off the coasts of New York, California, and Louisiana.

“After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future,” RWE said in a release.

“The company determined that this resolution best serves the interests of its stakeholders and allows it to direct resources toward energy projects that can be advanced with certainty.”

RWE will scrap its 2.8GW Community Offshore Wind project, as well as lease holdings in the Gulf of Mexico and in Humboldt Bay, California.

RWE said it will “continue to deploy capital across the U.S. to meet rapidly growing energy demand”, including $900m to acquire a 16% stake in the Louisiana LNG Project, which will fund the construction of the project’s terminal.

RWE has also signed a $300m gas turbine reservation agreement, and will develop a pipeline of 15 natural gas projects across market in the US.

The developer has announced plans to invest some $17b in the US over the next six years, from 13 GW across 27 states today to 22 GW by 2031.

The Trump administration has also reached deals to vacate offshore wind leases with Invenergy, TotalEnergies, and Ocean Winds.

More information:https://www.renews.biz/offshore-wind/rwe-to-hand-back-us-offshore-leases/