HOUSTON—A global energy corporation based in France has ceded leases off North Carolina and New York, where it planned to spend nearly $1 billion to build offshore wind turbines, back to the U.S. Department of the Interior and will instead redirect that investment into natural gas projects in Texas.

Burgum said much of TotalEnergies’ offshore wind investments were tied to Biden-era “green energy” subsidies rather than direct power generation, forcing U.S. taxpayers “to pay for energy sources twice.”

Under the agreement, the department will reimburse TotalEnergies “dollar for dollar” for the $928 million it spent on securing the leases, much of that placed in bonds required to develop federal lands, in exchange for the company agreeing to reinvest that money into a Texas LNG project it was already developing.

The vacated offshore leases were acquired in 2022. They are in the Carolina Long Bay area off North Carolina and in the New York Bight off Long Island.

Related Stories

Judge Lifts Trump Admin’s Stop-Work Order on Ørsted Offshore Wind Project

UK Launches Major North Sea Offshore Wind Plan With Europe

“With this agreement, we’re allowing this great company to redirect those dollars to affordable, reliable, and secure oil and natural gas production in the U.S.,” Burgum said.

Pouyanné said offshore wind development in the United States, “unlike those in Europe,” is costly and “might have a negative impact on power affordability” for the electrical customers they were designed to serve. “TotalEnergies considers there is no need to allocate capital to this technology in the U.S.,” he said.

The abundance of natural gas and domestic producers’ growing capacity to liquify natural gas for transport by ship is “a more affordable way” to generate energy in the United States, he said.

“These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development,” Pouyanné said. “We believe this is a more efficient use of capital in the United States.”