The battle over offshore wind development is ongoing in U.S. courts. We’ve covered Ørsted’s efforts to sue the government for pulling offshore wind leases after citing national security concerns. Amid this legal fight, French wind developer Total Energies is backing down in favor of a deal. Choosing instead to settle with the Administration, Total Energies is set to recover lease fees on the condition that they reinvest such funds in fossil fuels. A press release from Total Energies states:
“Under the terms of the settlement, TotalEnergies will recover the lease fees paid and will invest an equal amount in the development of U.S. Gas & Power production and exports. TotalEnergies’ studies on these leases have shown that offshore wind developments in the United States, unlike those in Europe, are costly and might have a negative impact on power affordability for U.S. consumers. Since other technologies are available to meet the growing demand for electricity in the United States in a more affordable way, TotalEnergies considers there is no need to allocate capital to this technology in the U.S.”
Astute readers may ask questions like “which studies show that offshore wind developments are more costly in the U.S.?” or “why would wind energy have a negative impact on power affordability?” To those readers, I say, don’t hold your breath for any answers grounded in reality. Like the fictional Don Quixote, this administration has long had it out for windmills. Their arguments against them, like the national security bit, are not grounded in reason. Nevertheless, as policymakers, the administration wields significant power over energy infrastructure. That power is being leveraged to make offshore wind development next to impossible. We’ll see if other companies with sunk costs in wind leases strike similar deals in the coming weeks.
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