WASHINGTON: The Trump administration says it will pay US$765mil to power project developer Invenergy to terminate four wind leases off the coasts of New York, California and Maine.
The Department of the Interior said in a statement that Invenergy will use those funds to develop natural gas power plants in five Midwestern states and geothermal projects in western United States.
The deal is the latest of several the administration has announced this year as part of a wide-ranging effort to stop development of US offshore wind projects, which it regards as costly and inefficient.
President Donald Trump’s administration has sought to increase domestic fossil fuel production and scrapped policies that support clean energy development, which has been criticised by Democrats and industry advocates.
“We applaud Invenergy for recognising the importance of baseload power and investing in energy solutions that deliver real benefits to American consumers,” Interior Secretary Doug Burgum said in a statement.
Seven US states sued the administration earlier this month over a nearly US$800mil in payment to France’s TotalEnergies to cancel an offshore wind lease off the coast of New York.
The states alleged the administration failed to follow proper administrative processes and misused a government fund reserved for legal settlements even though there was no litigation between the parties.
An Interior Department spokesperson said the agreement had been reviewed by the Department of Justice (DoJ) and went through all appropriate channels.
Stanley Woodward, associate attorney general with the DoJ, said the agency looks forward “to continued cooperation from companies that are reevaluating their energy investments”. — Reuters
