The Department of the Interior on June 17 announced a settlement agreement with affiliates
of Invenergy that will terminate four offshore wind leases and redirect approximately $765 million toward other energy projects, including natural gas and geothermal power generation.
According to the department, the agreement involves offshore wind leases in the New York Bight, off California’s Central Coast, and in the Gulf of Maine. The Department of the Interior said the offshore wind projects “required significant taxpayer support.”
Under the settlement, Invenergy will voluntarily terminate the leases and invest the equivalent amount into energy projects that federal officials say can provide more reliable and affordable power. Planned investments include natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas, and Missouri, along with geothermal energy projects in the western United States.
Interior Secretary Doug Burgum said the agreement aligns with President Donald Trump’s Energy Dominance Agenda and will help expand dependable domestic energy production.
“The offshore wind leases were sold under the assumptions that taxpayers would indefinitely subsidize costly, unreliable projects and that no national security concerns were implicated,” Burgum said. “Under President Trump, companies are shifting investment back toward dependable, secure energy infrastructure.”
Environmental group Sierra Club criticized the deal as a government payoff.
“Time and time again, the courts have rejected Donald Trump’s moves to sink the offshore wind industry, so now he’s resorting to pay offs and grift in his never ending grudge match against wind power,” Sierra Club Senior Adviser Nancy Pyne said in a statement, adding that “offshore wind is a common sense solution to high energy prices and deadly fossil fuel pollution.”
Associate Attorney General Stanley Woodward called the agreement a step toward lowering energy costs and strengthening national security by encouraging investment in conventional energy infrastructure.
Invenergy Senior Vice President for Development Daniel Runyan said the company is focused on meeting growing energy demand through projects that can be delivered on commercially reasonable timelines.
“At a time of unprecedented energy demand, Invenergy is focused on delivering reliable, affordable energy for our customers and supporting disciplined investment at scale,” Runyan said.
The Interior Department said the settlement partially reimburses offshore wind lease costs while encouraging investment in energy projects that officials believe will provide stronger returns for taxpayers and greater grid reliability.
