US strikes $1.2B deal to pay German firm to halt offshore wind projects
bbc.com
bbc.com
I agree. This is why we are building offshore wind and not subsidizing fossil fuels, right?
While paying out 1.2 billion dollars.
> RWE U.S. Offshore secured these leases from the U.S. government with a long-term commitment to develop offshore wind capacity in American waters and invested more than $1 billion toward the leases and the development of these projects. These leases provided legal rights to develop offshore projects and represented years of planning, investment, and partnership with federal agencies.
> After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future. The settlement resolves RWE U.S. Offshore’s legal claims and provides $1.22 billion in settlement funds.
https://www.rwe.com/en/investor-relations/financial-calendar...
> While paying out 1.2 billion dollars.
for nothing. to literally replace some energy with no energy.
If you and I listened to the propaganda on the regular basis, our intuitive knowledge would associate clean energy with isolated from reality snowflake liberals, hippies, abortion, subsidies, as opposed to fossil fuel energy associated with manliness, strength, common sense, “good old values”, military strength, and freedom.
Just like beef (“it’s what’s for dinner”) and a delicious juicy rare steak. See?
I recommend checking out George Lakoff’s work on the power of identity and metaphors. Look up his “moral politics” lecture on YouTube.
https://www.theguardian.com/environment/2025/sep/09/fossil-f...
So if politicians base their decisions on "common sense", they confess to not being able to use experts that refine their knowledge and position about a topic.
A "common sense" strategy is therefore what is most popular and on the basis of the understanding of laymen without deeper understanding or knowledge.
But that leaves out the government and all those interested parties so we're never ever getting that.
There's a really strong incentive to keep energy generation cheap, because pretty much every social and political issue is downstream of it.
Of course, leaving aside how petroleum is subsidized [through the department of defense].
While ecologists usually are in favor of subsidies, subsidies incentive people to consume more, which exhausts our Earth. We should develop less, i.e. we should develop in accordance with a higher facial cost of energy, which sometimes implies having a smaller home and fewer industries, which is what would happen if we didn’t sponsor solar or wind energy [or coal or fossil].
These people are not interested in coherent policy. They say whatever they want to justify it, we know it, and they know we know it. It’s an intentional expression of domination.
Just another thing to prosecute and rebuild.
I mean it’s common sense
[1]: https://www.c-span.org/clip/white-house-event/user-clip-trum...
It's framed as US government giving $1.2b to German company not to build something (which is weird in its own right). But after drilling into it (correct me if I'm wrong):
RWE is a large German utility
It paid $1.2b for development rights and invested a bunch of money.
The US passed policies that made it impossible to develop the plan.
So it's essentially a negotiated unwind of government-issued property/development rights. US changed the rules, made the lease ineffective and compensated the leasee. But the deal was that instead of RWE just taking the money they agreed to other development projects related to natural gas (better in my opinion).
You might disagree with the policies that made these wind farms impossible or whether the buy out of federal leased land is fair to one party or another. But I wish articles actually cared enough to describe the situation clearly.
Questions I would like mentioned in the article in place of Trumps rhetoric about "big ugly windmills" is details about the actual restrictions that made it impossible, history of it, impact, etc.
Of course "common sense" ought to probably include "Not cooking ourselves".
Has anyone mentioned the expected cost per Mwh of this project to get a sense whether this made economic sense, or are we talking Biden admin adjacent vanity political project paid by rate payers?
Just for reference, the hopefully-cancelled Empire wind near me had a 20yr PPA of $155mwh, which makes Vogtle (-~$170mwh) look like a steal.
More numbers and less foaming at the mouth, please.
They say one thing and do another!
Edit: I meant to say wrapping their stupid acts under the disguise of 'common sense' is a stupid act in itself.
Funnily enough, the most striking part was the pure stupidity of a lot of it - seems so strange, but every day it seems I hear another really stupid story and think ... huh, maybe it really can be like that.
Meaning for example, what about empires that actually survived or adapted? What did they do that we know exactly didnt the Roman Empire do that saved them? How does zeitgeist impact this in the sense that what ruined Roman Empire might save a nation today?
Not trying to be negative, Im jsut geniunley curios because then if I was in government, Id be "yeah I see the same. I mscared as fuck were messing it up, but then what should we do?" because you see, everybody is giving at advice with very diverse and extreme ideas on what should happen. Probably with most of them you and I wouldnt be OK with (do Dictatorships work? ...).
Or simpler, we all agree on the problem. What are all the solutions and how do we know theyre the correct ones? Thats what Im thinking about the last years.
1. It struggled to remain "solvent" because it lost taxable provinces relative to the costs of wars, administration, etc.
2. It took years for it to eventually "fall". It didn't just magically disappear overnight.
The Empire was relentlessly invaded by tribes like the Visigoths and the Vandals, and they even sacked Rome multiple times in the 400s CE. There was a huge amount of political corruption, and no, I don't mean anything like what's going on in the US. Military leaders and royal guards fought each other for power, leading to frequent civil wars and leaders who didn't last long. No one wanted to join the military and so it had to hire foreign mercenaries who didn't really have any loyalty. The Roman Empire eventually split right in half because a single ruler could not project power over the entire territory. The Western Roman Empire spoke an entirely different language from the Eastern Roman Empire (Latin vs Greek)!
I'm sorry, but I keep hearing these comparisons from people who seem to have a very shallow understanding of history and are looking for patterns because they read online that the US is crumbling. Maybe, maybe not, but it is not the same thing or even similar. The differences are far more than the similarities.
It all depends on what you define as the collapse of the Roman Empire, but the earliest sensible candidate date would be about four and a half centuries after the population 'opted' for authoritarianism (which wasn't much of a choice for anyone btw).
People need to stop making senseless historical comparisons.
> eventually opting for authoritarianism
The Roman Empire was always authoritarian. You might be interested in the collapse of the Roman Republic, where the abuse of slaves and farmers for the indulgence of the middle class and elites led to a popular clamoring for the strongman general Julius Caesar to impose justice (through dictatorship) on their "republic" by force, because their republic had never represented the demos.
* Smart Decisions can be celebrated
* Stupid Decisions can be "5-whys" root-cause analyzed
Shaming, and all that, can be left aside. And instead focusing on the possible Wins.
A success-oriented approach, of applauding and ranking The Most Smart Policies, could be a way forward. It's innately motivating.
Democratic Decline is real. Voter apathy is real. Gaslighting by power-focused politicians is real, and lack of a "service" mindset by those politicians, too. This is compelling stuff, obsessing over doom, and it's demotivating.
Celebrating The Most Smart policies is something I enjoy. E.g. on YouTube there is a Good News channel which lists "top 10 good pro-environmental / pro-social actions":
They found the right man for it. Cometh the hour, cometh the man.
Republicans are in a personality cult and establishment democrats are stuck in the midpoint between expoliting people the same way and expecting to win because they're "right" and "deserve" victory without the real consent of the people, equally as self interested but worse at it. The quiet racism of establishment democrats might save us by marginalizing muslim democrats -- there are a few of them like Mamdani who aren't allowed in the club and are thus actually thinking for themselves beyond self-interest and the corruption of the establishment. They as a group might save us.
If you want someone to blame, target the DNC. In a time of dangerous foolishness they utterly failed to and are continuing to fail to provide an attractive alternative.
If you want to help, give money to David Hogg.
The demand for energy is higher than ever due to AI data centers, but I guess the next model is more important than a habitable environment.
Parts of the US are literally on fire.
* https://firms.modaps.eosdis.nasa.gov/usfs/map/#d:24hrs;@-100...
Climate change is real, caused by humans, and the fires were seeing are absolutely exacerbated by the effects of the climate.
However this is the _least_ on fire the world has been for a while because it's usually Asian and Africa that are rampantly burning and they're improving land management techniques enough that it's tamping down on the worst of the burns.
Progress isn't evenly distributed
"Annual climate-disaster deaths averaged around 77,000 per year in the 1960s–70s, dropped to about 33,000/year in the 1980s–90s, and fell further to roughly 27,000/year in 2000–2019 even as the number of recorded climate disasters rose from about 1,171 to 3,656 to 6,641 across those same periods."
If you're optimising for human life, then "drill baby drill", as more energy = more wealth. More wealth = better infrastructure, health care, dealing with extreme weather conditions.
Over the last year, wind - mostly offshore - has generated more than 35% of electricity here. Gas is down to 27%. It's really, really good. And it looks cool.
We are building lots. Of everything.
What the hell is happening over there? Why can't they get 'energy' despite being a scientifically literate nation. France has a far superior energy policy so it's not like you even have to travel beyond a few miles to see a wildly different price for electricity. At this rate French electricity will be half the price in a few years compared to German electricity. Germany is making mistake after mistake on energy. From Russian dependence to Nuclear scepticism to now accepting money to not build renewables.
https://ourworldindata.org/grapher/energy-mix?tab=stacked-di...
Primary energy is not total energy generated its total energy in the fuel used.
On average coal / gas plants are only ~35% efficient so the graph does not correctly represent the useful energy generated as percentage.
The graph is basically putting actual energy generation of solar and wind next to actual energy generated by coal and gas multiplied by 3.
If they want to be even close to representative of reality they should multiply the solar power generated by 4. The same has to be done for the wind energy but I am not sure what the efficiency of that is.
From their page:
> Each source is measured by its physical energy content: fossil fuels and biomass by the heat released when they are burned; nuclear and geothermal by the heat they produce; and wind, solar, and hydropower by the electricity they generate.
This graph is far more representative of reality: https://ourworldindata.org/grapher/electricity-mix?tab=stack...
China is still behind in percentage but by only 1-3%
So losing to China is a feature not a bug. I think This explains Republican obsession with countries like Russia and Hungary that are certainly a few steps down the economic ladder from us.
China is really only building new renewables, almost 100x as much net renewable capacity per year compared to nuclear.
Coal+gas electricity is basically the same fraction in China than in the US.
But countries like Germany or Spain are significantly ahead in this regard, with much higher fraction of electrical energy coming from solar/wind.
See: https://ourworldindata.org/grapher/electricity-prod-source-s...
The scale is so crazy that these numbers rarely make sense on their own.
https://www.reuters.com/business/energy/china-generates-less...
> That [coal] share was well down from 65.5% in 2016, previous NEA figures showed.
> Renewable energy's share grew to 41.2% — topping 40% for the first time — and of that wind and solar accounted for 24.6%, Xing added. Wind and solar's share was up from 9.7% in 2020.
When combined coal and gas provide about 62% of China's electricity and 58% of US electricity. (Sources differ slightly on percentages. When you add in all fossil fuel electricity sources, China and the US get about the same percentage of electricity from them).
It is this way because China has plenty of coal and very little natural gas, whereas the US thanks to fracking has a lot of natural gas and it is much cheaper than coal so since then gas has rapidly replace coal.
That's the static picture. Now look at the first derivative. China is not just massively ahead at building renewables, they are massively ahead at building support infrastructure.
Look at UHV transmission lines for example: China has 60 000 km, quite a bit ahead of the 0 km in the US.
That said, renewable sources are so cheap and consequently economically appealing that not even the incredibly dumb Trump admin can stop them.
So this means, slightly less than half is other sources (hydro, solar, etc)
And who is to blame them (or to hold them accountable)? Some won't live long-term... I mean, being 80 and fat, what are the chances...
It is the third largest coal producer, behind India and China.
I assume they're still cooking up a backup plan to the petrodollar system and it will be business as usual until they have one.
Expect the US to double down with weird gestures like this and to find ways to remind the world that oil is relevant for some time.
China isn't rich in fossil energy? That's news to me.
They are the world's largest coal producer and still create over half of their electricity from coal. The difference to the US is that China seems to realize that this strategy isn't a long term solution.
Not everyone, but a majority. The minority is looking for ways to stop it, but it requires getting literally everyone else to work together. Which means any disagreement among them results in a loss, and more of the same evil.
It is really weird to me that such a thing as lobbying can be legal. Or the fact that you can donate to an election campaign so that they have more money to influence people.
And it is even more surprising that the vast majority of US people don't even question these things. I have the theory that American exceptionalism hinders their critical thinking when it comes to these kind of subjects. Ie "If we decided to do it like this, it means is the best way possible".
Absolutely shameful what the USA has become.
Like, I don't doubt that they will go and build gas projects, and might even use some of this money to kickstart it, but presumably RWE was already pretty far along the pipeline of preparing this offshore buildout, and there's likely a lot equipment orders, staff, ships, etc that they'd rather not cancel, and would rather redirect into another project if they can.
Maybe that's copium from me though, just sad to see a big wind project go to waste.
That's mostly it. Another factor would be Trump getting donations from the oil & gas industry.
Of course, since our government is flat broke, it's going to be more from interest on the debt.
The rest of the quote is actually about how it's meant to give people time to think, but it has clearly become an autonomic action.
Current deal is pretty clean and a win for both parties. US gov won't be drawn into a lengthy trial, RWE gets their money back, US gets a similar value investment, RWE gets a safer investment and a likely friendly government. US made some 40mil from the deal, or more likely 1-200 mil considering inflation; on the other hand RWE didn't lose their whole investment.
But a very lovely species of bug may at some point look down and marvel at the beautiful new world they've conquered. And I guess we've collectively decided we're happy to give them that.
There is really no way around this, no silver lining. After years of working to get these programs implemented, to have the admin just willy-nilly spend money (what money!?!) to have them STOP. It hurts man.
> The administration signed a similar $129bn (£96bn) agreement with Charlotte-based Duke Energy last month in exchange for the termination of the company's offshore wind lease in the Carolina Long Bay area.
So the lignite-burning energy dinosaur from Germany accepting a billion dollar bribe to divest resources from clean energy into fossil fuels is totally in character for that company. Shame on them.
Isn't the $1.2B deal a subsidy for conventional gas?
Building new infra will extend beyond trumps term, so it's possible they do "planning" for 2 years, new admin comes in, and they abandon the plan and go back to putting the money in wind.
Thank you. :)
Thank you. :)
But there are truly so many options to choose from which add up to more and worse still. Maybe we'll put our heads together and discover something to stop it eventually.
"Trump has sought to boost government support for fossil fuels after campaigning for the presidency under the slogan "drill, baby, drill"."
That's insane, even though half of Republican supporters believe in climate change, and almost all Democratic voters do too. I can understand cutting government spending on the transition to green energy when projects are unprofitable, but what is the point of cutting it for profitable ones? If I'm not mistaken, energy firms like RWE are even threatened with lawsuits if they continue building wind turbines. Other coal investments are even more insane.
I would love to know the thought process of this administration because it feels like a fever dream.
Given the degree of corruption and criminality, a more appropriate metaphor might be "smash and grab".
We do live in a dystopia don't we?
I wrote a book on the issue. I think the next best thing we can do is work together to amplify our voices to the point ignoring us is no longer politically convenient.
The same generation who groused about how bad snow used to be (Up to rooftops!) and make fun of people who struggle in what little snow we get right now are the same people who are posting in comments sections "Earth has always changed temperature"
Just... Why? To protect a few hundred jobs in America? They could have just given a small portion of that money to these workers and they would stop complaining about job loss. 1.2 Billion is a big number.
https://www.youtube.com/shorts/uyLiON_f5c0
https://www.bbc.com/news/uk-scotland-north-east-orkney-shetl...
Geniuses.
Oh God, what now, we've finally bombed Cuba?
"...$1.2B deal to pay..."
Oh thank God!
"...halt offshore wind projects"
God damn it.
In most locations, unless you have extremely stable weather, it's ideal to have a nearly even mix of wind and solar capacity, since wind is rather strongly anticorrelated with sunshine.
Donald Trump pledges 'any legal means' fight against windfarm. US tycoon saying proposed offshire turbines will 'compromise' golf resort – and ruin his sea view: https://www.theguardian.com/world/2011/aug/05/donald-trump-l...
Donald Trump continues to battle Scottish offshore windfarm plans. In his second letter to Alex Salmond, the businessman said the turbines would have a negative impact on Scottish tourism: https://www.theguardian.com/environment/2011/sep/28/donald-t...
And coal?
Nobody else ever spent this much money to NOT have cheap power 8-/
[1] https://www.theguardian.com/us-news/2026/apr/18/trump-admini...
"SCOOOTTTTT !!!!!!"
winning winning winning winning winning winning winning winning
Prompted an AI this:
It's year 2005, and you're an AI on an alien planet. you get a piece of news from the future from a planet called Earth. Tell me what you understand from the text and what you think about it: (then pasted the article text)
invest in your own solar, or other forms of renewable energy - get an ev.
Why not just give that 1.2bn to those "conventional gas" projects they want in Louisiana so bad?
Not that I agree with creating mroe "conventional gas" projects, I don't. Even just the idea of paying a company NOT to do a green energy project is completely stupid. We need more energy period.
There also needs to be a conversation of if the executive branch should even have the powers to stop this. A a YIMBY person I believe their power should be limited to verifying the permits were filled out correctly (and I believe in reducing paperwork for them), that is they cannot say no to this if the process was followed.
Is this claim substantive at all?
If a flock of flamingos or geese are doing a low pass it's possible they get shredded by them.
If Godzilla tries to get out of the water near them it's possible it gets hit in the head. Also he may destroy them since Godzilla is, as we all know, a nuclear energy proponent.
There is of course some danger to wildlife but compared to things like planes, cars and boats its pretty minimal and can be managed.
†: in fairness to them, they are almost uniformly opposed to Trump's adventurism in Iran and mostly not supportive of the Jan 7th slush-fund, and will call out both when pressed
Still short sighted and stupid, of course.
They are literally a non-stop crime-spree against humanity
But if the Dems don't get 52 in the Senate absolutely nothing will change and might get even worse, likely much worse
In other words, even if there's a feedback loop, an election won't magically fix everything.
Poverty. 1.2B less
On the other hand, the economical support of US politicians to some ideological groups in Germany is concerning. How do we know that this is not just laundering and justifying to move billions from US to the "right (far right) people" in Germany?
Being so obedient to Mr. Trump, who in turn now faces allegation of being more involved than was previously already known with regards to Epstein's sexy islands, is a lose-lose situation Mr. Merz. USA paying german companies to abandon green energy plans, also ties into that. If Merz would have something called a spine he would not be so addicted to the money and instead reject the USA trying to influence Europeans and Germans negatively here. Because that money is ultimately bribery money for RWE. Shame on RWE as well.
German energy company RWE has said it will abandon its offshore wind projects in the US after reaching a $1.2bn (£892m) payout deal with President Donald Trump's Department of the Interior (DoI).
RWE said that it will now reinvest the sum into conventional gas projects, including $900m (£669m) in a liquefied natural gas (LNG) export terminal project in Louisiana.
They are not paying Germany to prevent a German firm from building offshore wind projects on German shores. They are paying so that the German firm does not do it on US shores.
Terrible either way, but I think a lot of comments here are simply commenting after reading only the terrible title.
like yes there was binding commitment to RWE getting some level of subsidies, hence he had to "pay them of" around the amount of profit they have likely list, and probably more
but... compared to not paying that much more in subsidies _and_ getting more electricity out of it which the US seem to currently be quite tight one this seems to be a terrible bad deal
---
EDIT: Sorry for the rant below, it's just pretty annoying how dishonest non fact based politics has been becoming where I live:
furthermore you can stop future subsidies, so if wind energy is as "fake" as he claims this is something RWE would be stuck with not them, even if it drive them bankrupt it wouldn't be a USA problem (and more a German one)
so the only way this deal makes sense is if you a) hate wind energy and want it cone irrationally b) know it actually works and as such would "stay around" for sure (or if you really really really care about birds, no way this is true for Trump)
(And also practically it already has proven that off shore wind farms can work profitable, so b, isn't really a question. But I guess if you have a president who says all the wind farms in China are fake for show while China produce roughly as much wind energy as all of the EU together then sure you can't except logic).
In general the amount of nonsense you hear when it comes to the topic of renewable energies is pretty crazy both in how people "proof how bad it is" .. based on early technology from well over 20+ years ago, systematically ignoring relevant components of a complete solution, pretending certain already in-use technologies don't exist and don't make sense etc. To ignoring issues with whatever technology they favor and often comparing wrongly calculated "non subsidized" renewable prices with "highly subsidized" non renewable prices. Don't get me wrong it also is done the other way around. But at least where I live, that direction of propaganda isn't really relevantly used while the other direction is spread everywhere non stop (while also pretending that any honest calculation is supposedly "faked" because it doesn't fit their world view).
The neo-industrialist in me thinks it would have been cool to see that driving the 1.
But you can hardly call dredging and filling all that open ocean habitat conservationist.
A visualization of turbines at different distances: https://archive.nytimes.com/green.blogs.nytimes.com/2008/10/...
Turbines are all but invisible at 21 miles out, the minimum distance the california RWE project would have been installed at. Beyond that, they are hidden by the earths curvature.
https://www.northcoastoffshorewind.org/post/how-visible-woul...
https://www.boem.gov/renewable-energy/state-activities/humbo...
I don't care how energy efficient it is. It's dystopian and depressing.
Is no one worried about this?
We'll hit other constraints long before that happens.
There may be some local effects. I think the main one is one cluster of wind turbines effecting the output of nearby clusters (and effects within a cluster). Pretty sure they account for this when engineering wind farms, with the effects actively being studied.
I also believe in a free market, and power should be subsidised equally per MW (MWh maybe?) this takes the politics out of a structural necessity. If you want to push a political agenda - great - but do it on political topics.
This does not mean that renewables or offshore wind should not be built it just means that the regime around how sites are awarded, and how power purchase contracts are made need to be reworked.
A lot of the world is struggling with this (recently UK re-tendered for Mona lease area with much more favourable conditions than r4 initial lease).
Generally speaking I think the best approach would be to have almost zero / nominal lease fee, then have a competitive auction around a two sided CFD - if the market price is below the strike price the state makes up the difference, if the market price is above the strike price the excess goes back to the state.
Can you explain where you got your information from?
* The leases were already paid for (in total) in 2022-2023 for $1bn.
* The expected output would have been 7gigawatts annually, which is a 5-7x return per year on paper.
* The sale of the lease is due to a regulatory blockade, not a traditional cost benefit analysis.
Then, there is the supply chain argument: the specialized turbines, components, vessels and manufacturing chains are manufactured overseas and imported to support Wind. RWE is itself German. It’s good to reduce dependence on foreign supply chains.
Fishing and maritime was also cited as a concern.
Onshore Wind is used (see New Mexico). Offshore Wind is a harder sell.
Gas/nuclear/geothermal is a better investment for the US than Offshore Wind.
The fact that we're still basically entirely reliant on the middle east and other foreign producers for our domestic fuel supply suggests this isn't really that big of a deal. Even in the middle of a war that is generating massive profits for the oil industry, no one is suggesting they should add refinery capacity or convert existing ones to use domestic oil.
This move is about the president's personal vendetta against offshore wind and satisfying his financial backers in the fossil fuel industry.
Huh? That’s quite a whopper to drop as if it’s an obvious truth.
It’s good to diversify supply chains. Eggs-in-one-basket is bad for many reasons, even if it’s your own domestic basket.
Trade interdependence is good for competition, reduces risks from disasters, and creates disincentives for war.
And the market apparently thinks offshore wind is a good investement for the US, to the point where the government has to pay companies not to do it.