TotalEnergies SE (NYSE:TTE) announced on Monday that it has signed settlement agreements with the U.S. Department of the Interior (DOI) to relinquish its offshore wind leases in the United States.

The agreements cover the Carolina Long Bay lease (Lease OCS-A 0545) and the New York Bight lease (Lease OCS-A 0538), both awarded in 2022. As a result, the company will no longer develop offshore wind projects in the U.S.

Settlement Terms

Under the settlement, TotalEnergies will recover the lease fees it paid. It will also invest an equal amount in U.S. gas and power production, along with export capacity.

The company said its studies showed that offshore wind projects in the United States are more expensive than in Europe. It added that these projects could hurt power affordability for U.S. consumers. At the same time, other technologies can meet rising electricity demand at a lower cost. As a result, TotalEnergies said there is no need to allocate capital to offshore wind in the U.S.

Pivot to LNG and Gas

"TotalEnergies is pleased to sign these settlement agreements with the DOI and to support the Administration's Energy Policy. Considering that the development of offshore wind projects is not in the country's interest, we have decided to renounce offshore wind development in the United States, ...