Source: Fortune
Summary
TotalEnergies will abandon nearly $1 billion in offshore wind projects along the U.S. East Coast, opting instead to redirect funds to natural gas projects in Texas. The company’s chairman and CEO, Patrick Pouyanné, cited the lack of federal subsidies for offshore wind in the U.S. as the reason for the decision. The U.S. Interior Department will reimburse TotalEnergies $928 million for its investments in the abandoned projects.
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The numbers tell one story.
TotalEnergies is walking away from offshore wind projects that were deemed too expensive without federal subsidies. The company will instead invest in natural gas projects, including the Rio Grande LNG project in Texas. Pouyanné framed the decision as “pragmatic.” The U.S. Interior Department will reimburse TotalEnergies for its abandoned investments. The move comes as the Trump administration has pushed back against the expansion of wind and solar energy in favor of fossil fuels.
TotalEnergies is making a calculated bet on natural gas, and the U.S. government is happy to oblige.
Author: Evan Null
