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Interior Pays $765 Million to Invenergy to End Four Offshore Wind Leases

The deal redirects federal money toward natural gas and geothermal projects and deepens legal and planning uncertainty for coastal clean‑energy development.

Overview

  • The Interior Department announced on Wednesday that it will pay Invenergy $765 million to terminate four early‑stage offshore wind leases off New York, California and Maine.
  • That payment is the latest in a series of buyouts this year that reporters say raise the total federal reimbursements for canceling U.S. offshore wind leases to roughly $2.5–$2.6 billion.
  • Interior said Invenergy will use the funds to build natural gas power plants in five Midwestern states and to invest in geothermal projects in the Western United States.
  • Seven states and industry groups have sued, arguing the administration misused a federal legal‑settlement fund and skipped required procedures, and courts have already restored some leasing authority even as buyouts continue.
  • Developers, port communities and grid planners face near‑term losses of projected coastal capacity, potential local job and investment hits, and wider investor uncertainty about the future of U.S. offshore wind.