In a move that could reshape America’s clean energy future, the Trump administration announced Monday it will pay French energy giant TotalEnergies $1 billion to halt offshore wind projects along the US East Coast. The deal underscores the administration’s pivot toward fossil fuels amid soaring global energy prices caused by the Iran conflict.

TotalEnergies Walks Away from US Wind

Under the agreement, TotalEnergies will relinquish two offshore leases off New York and North Carolina, which it had purchased for $928 million. In return, the Department of the Interior will reimburse the company the full cost. TotalEnergies has also pledged not to pursue new offshore wind projects in the United States.

Instead, the company will invest nearly $1 billion domestically in conventional energy: four trains at the Rio Grande LNG plant, upstream oil development in the Gulf of Mexico, and shale gas production, according to the Interior Department.

Political Theater or Energy Strategy?

Critics called the deal a “taxpayer-funded bribe” that undermines homegrown renewable energy. Sam Salustro, senior vice president at the pro-offshore wind group Oceantic Network, said the move removes reliable, affordable wind power just as electricity prices surge.

“This deal leaves American consumers struggling,” Salustro said, noting that several other offshore projects, like the Vineyard Wind project and Revolution Wind off Rhode Island, continue to deliver power.

Environmental advocates warned the administration is deepening US dependence on volatile fossil fuels while undermining renewable alternatives. Lena Moffitt, executive director of Evergreen Action, called the deal “a direct handoff to oil and gas executives” at the expense of taxpayers.

Offshore Wind vs. Fossil Fuels

TotalEnergies CEO Patrick Pouyanné defended the move, claiming offshore wind is not currently the most cost-effective electricity source in the US. Meanwhile, the Trump administration has long criticized wind energy as “ugly, costly, and inefficient,” simultaneously boosting domestic fossil fuel production.

The deal was unveiled at the CERAWeek energy conference, with Pouyanné and US Secretary of the Interior Doug Burgum on hand.

Energy Market Turmoil

The announcement comes as US-Israeli strikes in Iran disrupt oil supply, creating unprecedented volatility. Critics say the administration’s strategy obscures the benefits of renewable energy, leaving Americans exposed to price swings in fossil fuels while offshore wind projects—already permitted and under construction—are sidelined.

Environmental groups, including the Sierra Club, emphasized that offshore wind remains a path to cheaper, cleaner electricity and urged policy grounded in science rather than allegiance to corporate polluters.