Trump’s strong opposition to wind farms leads to a $1 billion payment to a French energy company to halt construction and redirect funds to natural gas projects.

(SeaPRwire) –   Under pressure from the Trump administration to cancel the projects, the major oil company TotalEnergies will scrap nearly $1 billion in offshore wind initiatives planned for the U.S. East Coast. In return, the reimbursed funds will be redirected to U.S. natural gas projects, mainly in Texas.

Under a so-called “landmark agreement” announced on March 23 between TotalEnergies and the U.S. Interior Department, the federal government will compensate the French energy firm approximately $928 million for its investments in the Attentive Energy and Carolina Long Bay projects. These offshore initiatives, located off the coasts of New York and North Carolina respectively, were paused by the company following the election of President Donald Trump.

During a speech at the CERAWeek by S&P Global event in Houston, TotalEnergies Chairman and CEO Patrick Pouyanné stated that the company is choosing “not to pursue legal action, but to find practical solutions.”

He noted that while TotalEnergies will continue to pursue onshore wind, solar, and battery storage projects in the U.S., the company will withdraw from offshore wind, which is now considered too large and costly without federal subsidies in the country.

“It’s beneficial to be innovative on occasion and practical,” Pouyanné remarked. “We can reuse this funding … for more strategic investments.”

President Trump has opposed the expansion of both wind and solar energy in the U.S., favoring fossil fuels instead. However, he holds a specific aversion to large offshore wind turbines, which he views as unsightly.

TotalEnergies is also a significant participant in the U.S. natural gas sector, particularly in liquefied natural gas (LNG) exports. Though the agreement with the Interior Department lacks detailed information, it specifically mentions the company’s increased investments in Houston-based NextDecade’s Rio Grande LNG project in southern Texas, as well as in natural gas production ventures in the Gulf of Mexico and U.S. shale drilling.

TotalEnergies holds a 17% stake in NextDecade and is a key buyer of gas exports from the Rio Grande LNG project. Additionally, the company owns a share of Sempra Energy’s Cameron LNG facility in Louisiana and is an investor in Glenfarne’s proposed Alaska LNG project.

U.S. Interior Secretary Doug Burgum, speaking alongside Pouyanné, stated that TotalEnergies will invest in more reliable natural gas projects rather than “intermittent” wind farms. “We are not guided by climate idealism,” Burgum said.

“They (TotalEnergies) expected a large number of subsidies,” Burgum commented, pointing to the termination of subsidies for wind and solar projects under Trump’s “One Big Beautiful Bill,” which was approved last year.