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U.S. Drafts Nearly $1 Billion Settlement to Cancel TotalEnergies Offshore Wind Leases

The offer reflects a broader policy shift that has paused offshore wind projects under the current administration.

Overview

  • U.S. officials are preparing agreements to reimburse about $928 million and cancel the Attentive Energy and Carolina Long Bay leases, according to documents reviewed by the New York Times.
  • Under the reported plan, the Interior Department would void the leases and the Justice Department would compensate TotalEnergies for its 2022 winning bids.
  • The documents indicate TotalEnergies would abandon the offshore wind projects and commit to investing in natural gas infrastructure in Texas as part of the settlement.
  • It is unclear whether TotalEnergies will accept the offer, and the administration intends to cancel the leases even if the company declines, the reporting says.
  • TotalEnergies paid $795 million for the New York Bight lease and $160 million for Carolina Long Bay, with the former spanning about 132 square miles and the latter described as capable of supporting roughly 1 GW.