Energy & Environment

Trump to pay more companies to abandon offshore wind and invest in fossil fuels

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by Rachel Frazin - 04/27/26 5:27 PM ET

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by Rachel Frazin - 04/27/26 5:27 PM ET

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The Trump administration will pay two energy companies to abandon their offshore wind ambitions and invest in fossil fuels instead.

The Interior Department announced on Monday that it would issue a refund to Global Infrastructure Partners, which is part of BlackRock and Golden State Wind, for the money they paid for the opportunity to build offshore wind if they give up their wind leases and invest in fossil energy.

The news comes after the department announced a similar agreement with TotalEnergies last month and is part of the administration’s broader crusade against wind energy.

Under its deal, Global Infrastructure Partners has committed to invest up to $765 million, which it originally spent on its offshore wind lease, in a U.S.-based liquefied natural gas (LNG) facility, the Interior Department said.

In exchange, the department said it will cancel the lease and give the company a reimbursement of the amount it invests in the LNG facility.

Golden State Wind will be eligible to receive up to $120 million in reimbursed lease fees based on how much it invests in U.S. oil and gas, energy infrastructure or LNG projects around the Gulf Coast.

Golden State Wind is a joint venture between Ocean Winds and Reventus Power. Ocean Winds is a joint venture between ENGIE and EDP Renewables. Reventus Power is a portfolio company of the Canada Pension Plan Investment Board.

In a written statement, Interior Secretary Doug Burgum touted the moves.

“The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies,” Burgum said. “Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure.”

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