TotalEnergies has announced its decision to exit offshore wind development in the United States following a settlement agreement.
Eko Hot News reports that the company will be reimbursed for its successful bids in the Attentive Energy project in the New York Bight and the Carolina Long Bay project off North Carolina. Both projects were originally awarded in 2022.
With this development, TotalEnergies will no longer pursue offshore wind opportunities in the US market. The company stated that the decision aligns with its broader investment priorities and market outlook.
Under the settlement terms, the recovered lease fees will be redirected into US gas and power production. The company also plans to strengthen its export capacity in the energy sector.
TotalEnergies explained that offshore wind projects in the United States are relatively expensive compared to similar developments in Europe. This cost factor, it noted, could impact electricity affordability for consumers.
The company added that alternative energy technologies are available to meet growing electricity demand in the US. These options are considered more cost-effective and efficient for current market conditions.
Following the 2024 election of Donald Trump, TotalEnergies had earlier paused its offshore wind projects. At the time, it indicated plans to review its investment strategy and explore other markets.
Chief Executive Officer Patrick Pouyanné confirmed the decision to withdraw from offshore wind development in the US. He stated that the company opted for reimbursement of lease fees rather than continuing with the projects.
He added that the recovered funds will support the construction of the Rio Grande LNG plant. The investment will also boost the company’s oil and gas operations.
According to Pouyanné, these investments will enhance energy supply to Europe through LNG exports. They are also expected to support gas demand for data centre development in the United States.
In addition, TotalEnergies recently signed a letter of intent with Glenfarne for the Alaska LNG project. The agreement covers the long-term supply of 2 million tonnes per annum of LNG over 20 years.
The company believes this strategic shift represents a more efficient use of capital. It also reflects changing priorities within the global energy landscape.
