Bluepoint Wind will withdraw from its lease for an offshore wind project. Credit: fokke baarssen/Shutterstock.com.

The US Department of the Interior (DoI) has confirmed the termination of two offshore wind leases held by Bluepoint Wind and Golden State Wind.

The respective affiliate companies plan to make financial investments in conventional energy projects.

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This move follows a similar agreement reached last month with TotalEnergies and marks a continued shift in federal energy strategy from offshore wind development to conventional energy production.

Bluepoint Wind is a joint venture (JV) between Global Infrastructure Partners and Ocean Winds.

Global Infrastructure Partners, affiliated with BlackRock, plans to invest up to $765m, the initial bid for the Bluepoint Wind offshore project (Lease No. OCS-A 0537), into a US liquefied natural gas (LNG) facility.

With this expedited investment, the DoI will cancel the lease and refund the company with the amount invested in the LNG project. Furthermore, Bluepoint Wind has opted not to engage in any new offshore wind projects in the US.

Similarly, Golden State Wind will end its offshore wind lease in the Morro Bay Wind Energy Area in California (Lease OCS-P 0564).

The company will become eligible to recover up to $120m in lease fees if it invests an equal sum in oil and gas, energy infrastructure or LNG projects along the Gulf Coast.

Golden State Wind has also committed to ceasing new offshore wind developments in the US.

The latest deals reinforce the Trump administration’s approach of prioritising fossil fuel projects over offshore wind, citing cost and development concerns.

Both the Bluepoint Wind and Golden State Wind transactions involve Ocean Winds, a JV between ENGIE and EDP Renewables.

The agreements will see reallocation of capital to support fossil fuel-based energy assets.

US Secretary of the Interior Doug Burgum said: “Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure.

“We welcome each of the projects’ willingness to actually support baseload power and lower utility bills for American families.”