TotalEnergies abandons US offshore wind, redirects $1bn to oil and gas

French energy major TotalEnergies has signed an agreement with the Trump administration to redirect capital from offshore wind to oil and gas projects in the US.

The US Department of the Interior will reimburse the lease fees for the company’s offshore wind projects – approximately $1bn. In exchange, TotalEnergies has committed to reinvesting the refunded lease fees towards oil and gas projects. The company has also pledged to not develop any any offshore wind projects in the US.

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Patrick Pouyanné, the company’s chief executive said the company was pleased to sign these agreements and support the Trump 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, in exchange for the reimbursement of the lease fees”, commented Pouyanné.

“Furthermore, these agreements, under which we will reinvest the refunded lease fees to finance the construction of the 29 Mt Rio Grande LNG plant and the development of our oil and gas activities, allows us to support the development of U.S. gas production and export”, he adds.

These investments, according to Pouyanné, will supply Europe with American LNG in addition to supplying gas to data centres in the US.

AGM debate

TotalEnergies' apparent U-turn on US renewables comes as the energy giant released details for its upcoming AGM on 29 May, which will feature a discussion on the firm's energy transition, in keeping with French Say on Climate Rules. However, there will not be a binding vote on the strategy, with binding votes only being required every three years, according to the French rules. 

Major shareholders in TotalEnergies are Vanguard, Capital Group, DWS, French pension fund investor Caisse des Dépôts et Consignations and Norges Bank Investment Management.

"Investors should be wary of TotalEnergies’ deal with Trump, which fits perfectly with the oil and gas major’s ambitions to expand its LNG production in the United States. TotalEnergies abandoned any commitment to the energy transition long ago and has now turned its back on energy independence in Europe, condemning consumers to future dependence on polluting gas"  warned Lucie Pinson, founder and executive director at campaign group Reclaim Finance. 

She described Total's decision to opt for a non binding vote as:"not surprising." Given that their votes would not change what TotalEnergies does, at least there is no pretence."

Political hostility

US secretary of the interior Doug Burgum hailed the agreement as “yet another win for President Trump’s commitment to affordable and reliable energy for all Americans”.

It marks the latest escalation in the Trump administration’s efforts to block offshore wind development. Previously, Danish renewable energy operator Ørsted and Norwegian energy firm Equinor had received stop work orders for their offshore wind projects.

In January this year, both companies sued the administration and sought legal relief from the directives. Both projects were granted preliminary injunctions that allowed construction to continue.

Ørsted’s offshore wind project – Revolution Wind – began supplying power to New England’s grid ten days ago. In a statement, the company said the project would lead to savings of $500mn annually in wholesale energy costs. The company cited analysis from state of Connecticut’s department of energy and environmental protection to support its claim.

Ørsted’s chief development officer says the project is adding “affordable, American-made” energy to the grid. Contrasting the Trump administration’s claim that offshore wind is unreliable, expensive and supported by ‘ideological subsidies’.

At last count, the IMF’s analysis of fossil fuel subsidies – concluded that implicit subsidies to coal, oil and gas collectively stood at approximately $287bn. In September 2025, analysis from Oil Change International found federal fossil fuel industry subsidies totalled $34.8bn annually, with $4bn added through President Trump’s One Big Beautiful Bill Act.

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