The US Department of the Interior (DOI) has entered into a settlement agreement with Invenergy affiliates aimed at redirecting investment from offshore wind leases to other domestic energy sources.
The agreement involves Invenergy voluntarily terminating four offshore wind leases held by its affiliates. The leases, located in the New York Bight, the Central Coast of California and the Gulf of Maine, are valued at a combined $765m.
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The company will redirect the investment away from offshore wind projects towards the development of other domestic energy infrastructure.
This includes the construction of natural gas-fired power plants in states such as Indiana, Iowa, Wisconsin, Kansas and Missouri, as well as geothermal power generation projects in the western US.
The offshore wind leases were originally secured with what the DoI described as “significant taxpayer support”.
The department stated that the settlement will provide partial reimbursement related to these leases while encouraging capital investment in conventional energy projects.
US Secretary of the Interior Doug Burgum said: “President Trump is committed to unleashing affordable, reliable American energy for our country’s communities and putting the American people first through common-sense action.
“The offshore wind leases were sold under the assumptions that taxpayers would indefinitely subsidise costly, unreliable projects and that no national security concerns were implicated – both assumptions have since been proven false.
“Under President Trump, companies are shifting investment back toward dependable, secure energy infrastructure that can power our economy and lower utility costs. We applaud Invenergy for recognising the importance of baseload power and investing in energy solutions that deliver real benefits to American consumers.”
Invenergy Development senior vice-president Daniel Runyan said: “At a time of unprecedented energy demand, Invenergy is focused on delivering reliable, affordable energy for our customers and supporting disciplined investment at scale.
“That is why Invenergy, with our affiliates and on behalf of our various stakeholders, will deploy additional capital into projects that can be delivered on a commercially reasonable timeline and meet customer demand while continuing to evaluate opportunities as market conditions evolve.”
