March 17 - U.S. officials are drafting agreements that would pay about $1 billion to French oil major TotalEnergies in settlements owing to the cancellation of leases in federal waters for its wind
US weighs near $1 billion wind farm settlement for TotalEnergies, NYT reports
Details of Proposed Settlement and Project Background
Settlement Draft and Compensation Amount
March 17 - U.S. officials are drafting agreements to pay nearly $1 billion to oil major TotalEnergies as compensation for the cancellation of leases for wind farms in federal waters off New York State and North Carolina, the New York Times reported on Tuesday.
Under the terms of the proposed settlements, the U.S. Interior Department will cancel the leases in federal waters for two projects, known as Attentive Energy and Carolina Long Bay, the NYT said, citing documents.
Justice Department's Role and Payment Details
The Justice Department will then pay more than $928 million to TotalEnergies, compensating the firm for its winning bids in lease sales under the previous Biden administration, according to the NYT report.
Responses from Involved Parties
The White House, the U.S. Department of Justice and the U.S. Department of Interior did not immediately respond to Reuters requests for comment. TotalEnergies declined to comment on the report.
Reuters could not immediately verify the report.
Uncertainty and Political Context
Acceptance of Settlement and Lease Cancellation
It is unclear whether TotalEnergies will accept the proposed settlements, the NYT said, adding that the Trump administration would cancel the leases even if the company rejects the settlements, according to the documents cited.
Project Development Timeline
Attentive Energy Offshore Wind Project
The French energy group formed a joint venture in October 2023 for the development of the Attentive Energy offshore wind project off the coast of New York. In November 2024, it said it had paused the development of the wind farm after Donald Trump's U.S. presidential election victory.
Carolina Long Bay Project
The company won a lease for the Carolina Long Bay project in 2022.
Implications of the Settlement
Following a settlement, TotalEnergies would abandon its plans to begin building the wind farms. It would also commit to investing in natural gas infrastructure in Texas, the report said.
Broader Industry Impact
Offshore wind developers have faced repeated disruptions under Trump, who has said he finds wind turbines ugly, expensive and inefficient.
(Reporting by Kanjyik Ghosh in Barcelona; Editing by Aidan Lewis, Pooja Desai and Barbara Lewis)
