TotalEnergies abandons offshore wind projects in the US and invests almost $1 billion in oil and gas
Kyiv • UNN
TotalEnergies is halting offshore wind projects in the US in favor of oil and gas extraction. An investment of $928 million will be directed to Texas.
Energy company TotalEnergies has announced a change in strategy in the US, abandoning the development of offshore wind power. Instead, the company plans to invest about $1 billion in oil and gas production projects. This is reported by Reuters, writes UNN.
Details
By agreement with the US authorities, the companies will be compensated about $1 billion spent on leasing sites for offshore wind farms.
At the same time, TotalEnergies has committed not to launch new offshore wind projects in the country. After this, the US will terminate the relevant lease agreements concluded in 2022.
New investments
The company plans to allocate $928 million in 2026 to develop liquefied natural gas projects in Texas, as well as oil production in the Gulf of Mexico and shale gas.
The company's CEO, Patrick Pouyanné, stated that offshore wind power is not the most affordable source of electricity in the US.
Reaction and context
The US Department of the Interior called the agreement part of a course to develop affordable energy.
This is another victory for President Trump, who seeks to provide affordable and reliable energy
At the same time, representatives of the wind energy industry criticized the decision, calling it politically motivated and harmful to the development of clean energy.