Trump administration agrees $765 million Invenergy payment to exit offshore wind leases

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Trump Invenergy wind lease exit

Highlights

Invenergy will receive a $765 million partial refund from the Department of the Interior to exit four offshore wind leases off New York, Maine, and California.
Invenergy plans to redeploy the refunded capital into natural gas projects across five Midwestern states and expand geothermal investments in the western U.S.
The agreement follows similar exit payments to Total and Golden State Wind and is under legal and political scrutiny, including lawsuits and regulatory investigations initiated by various states and agencies.

Lease exit terms and capital redeployment

As reported by Financial Times, Invenergy said on Wednesday that the Department of the Interior will pay the company $765 million as a partial refund for four offshore wind leases. The sites are located off the coasts of New York, Maine and California, and the agreement swaps the abandoned wind plans for investment in fossil fuel and geothermal projects in the U.S.

Daniel Runyan, Invenergy’s senior vice-president for development, says the company is focused on delivering reliable and affordable energy while supporting disciplined investment at scale. Invenergy plans to deploy the refunded capital into natural gas projects in Indiana, Wisconsin, Iowa, Kansas and Missouri, while also expanding geothermal activity in the western U.S.

The company already holds 45 geothermal leases from the Bureau of Land Management, including 5,000 acres in New Mexico that it purchased yesterday. Geothermal remains a favored source for the Trump administration because it can provide uninterrupted clean power, and geothermal companies retain access to tax credits in the One Big Beautiful Bill that were removed for solar and wind developers.

Political scrutiny and broader industry impact

The agreement follows similar arrangements between the administration and other holders of U.S. offshore wind leases, including Total and Golden State Wind, which is owned by Canada Pension Funds Investment Board, Engie and EDP Renewables. The payment strategy emerges as the administration struggles to halt projects that are already close to completion after federal judges dismiss concerns that turbines interfere with military radar systems.

President Donald Trump describes offshore wind as "the worst" form of energy. A person familiar with the matter says Invenergy is not ruling out future offshore wind investment, but sees the current deal as a way to redirect capital from dormant projects that generate no returns and cannot be developed on a commercially reasonable timeline.

These agreements are drawing mounting legal and political attention. In early June, seven states led by New York sue the administration over its payment to Total; in early May, the New York State Common Retirement Fund says it is re-evaluating its stake in the company because of that agreement. The California Energy Commission has also issued a subpoena to Golden State Wind over its $120 million deal, and Democratic senator Sheldon Whitehouse opened an investigation into the payments in April.

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