German energy giant RWE, one of the world’s leading offshore wind developers, has announced it has suspended work on its U.S. offshore wind projects due to recent political developments under the Trump administration. CEO Markus Krebber made the announcement in a text published ahead of RWE’s upcoming annual general meeting scheduled for April 30, citing the changing political landscape and expressing caution moving forward. The decision marks a significant setback for the emerging U.S. offshore wind industry, which had been a central component of former President Joe Biden’s energy policy but now faces uncertainty under Donald Trump’s administration, which has moved swiftly to halt offshore wind expansion.
RWE currently holds three major offshore wind leases in U.S. waters, located off the coasts of New York, Louisiana, and California. Among these projects is the 3-gigawatt Community Offshore Wind project, a joint venture with Britain’s National Grid, which is majority-owned by RWE. The project had aimed to begin delivering electricity in the early 2030s, with a capacity to power over a million homes. RWE acquired the lease area for Community Offshore Wind in 2022, paying $1.1 billion. However, the future of the project is now uncertain.
The announcement follows a similar move by Norwegian energy firm Equinor, which paused construction on its Empire Wind I project after receiving a stop-work order from the U.S. Department of the Interior. Officials cited concerns about an inadequate environmental review during the project’s approval process. Trump, who ordered a suspension of offshore wind leasing on his first day back in office, has been a vocal critic of wind energy, describing it as unsightly and costly.
In addition to Community Offshore Wind, RWE was the sole bidder in a 2023 auction for offshore wind development rights in the Gulf of Mexico, securing a lease off the coast of Louisiana for $5.6 million. Trump has since renamed the region the “Gulf of America.” RWE also holds a lease off Northern California for its Canopy Offshore Wind project, which was not expected to be operational for another decade.
RWE had previously indicated a scaling back of its U.S. offshore activities but had not confirmed a full suspension until now. Community Offshore Wind alone has non-current assets valued at €1.31 billion ($1.49 billion) according to RWE’s latest annual report. With about half of its installed renewable capacity based in the United States, the company’s cautious stance reflects the broader challenges facing the renewable energy sector under the current U.S. administration.
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