The Trump administration’s $1.22 billion lease buyback with German energy giant RWE has steered $900 million into a Louisiana liquefied natural gas project tied to major Trump donor Michael Dorrell. The deal pushes total federal offshore wind cancellations to nearly $4 billion, triggering fierce political backlash and state lawsuits.
RWE Surrenders U.S. Offshore Wind Leases in $1.22 Billion Federal Agreement
German energy giant RWE has agreed to a $1.22 billion settlement with the U.S. Department of the Interior to relinquish its offshore wind leases across New York, California, and Louisiana. Announced on a Thursday, the deal marks an exit in an aggressive federal campaign to dismantle renewable energy infrastructure and redirect capital toward fossil fuels. RWE confirmed it now holds no remaining offshore wind leases in the United States, walking away from developments that could have generated seven gigawatts of clean electricity, enough to power more than five million homes.
The administration adopted the direct buyout strategy after federal courts blocked executive orders aimed at halting offshore wind development. Interior Secretary Doug Burgum praised the agreement, arguing that Americans deserve an energy system built on common sense, not one dependent on costly subsidies or technologies that can’t meet our country’s current demand.
Flow of Settlement Funds Sparks Conflict-of-Interest Probes
Behind the headline payout lies a financial trail connecting the federal settlement directly to a prominent political donor. RWE plans to spend $900 million of its federal funds to buy an indirect 16% stake in a massive Louisiana liquefied natural gas project, alongside $300 million dedicated to natural gas turbines and peaking projects across the United States.
The Louisiana gas stake is being purchased from a private equity fund managed by Australian billionaire Michael Dorrell.
White House spokeswoman Taylor Rogers dismissed criticism of the arrangement. This story is a brazen attempt to insinuate a conflict-of-interest that does not exist,
Rogers said, adding that administration officials had no role in selecting where RWE deployed its settlement money. The Department of the Interior similarly maintained that RWE initiated the buyout discussions independently. Stonepeak, the private equity firm where Dorrell serves as co-founder and CEO, stated that personal political contributions do not influence any Stonepeak transactions, investments, or partnership decisions.
Lawmakers and State Officials Push Back Against the $4 Billion Buyout Wave
| Energy Company | Announcement Period | Settlement / Reimbursement Amount | Action Taken |
|---|---|---|---|
| TotalEnergies | March | Nearly $1 billion | Surrendered two offshore wind leases |
| Golden State Wind & Bluepoint Wind | April | Nearly $900 million | Terminated wind leases in exchange for reimbursements |
| Invenergy | June | $765 million | Ended four early-stage wind leases |
| RWE U.S. Offshore | Thursday | $1.22 billion | Relinquished leases off New York, California, and Louisiana |
The rapid succession of lease buybacks has drawn severe condemnation from congressional Democrats. Rep. Jared Huffman, the top Democrat on the House Natural Resources Committee, labeled the agreements fake settlements
and announced plans to expand an ongoing congressional probe to investigate the flow of settlement funds to Dorrell’s firm.
“These fake ‘settlements’ were already an insane waste of taxpayer funds and a ridiculous charade that seems to be blatantly illegal,” said Rep. Jared Huffman (California), the top Democrat on the House Natural Resources Committee. “This now adds the stench of corruption.”
Rep. Jared Huffman, California Democrat
In the Senate, Sheldon Whitehouse criticized the policy as an administrative money pump designed to enrich fossil fuel donors while raising electricity costs for everyday consumers.
Local officials are similarly voicing outrage over lost economic development. State leaders, including representatives from California, are preparing legal challenges against the federal cancellations as the battle over America’s energy infrastructure intensifies across multiple fronts.
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