U.S. President Donald Trump's administration announced on April 27 that backers of two offshore wind projects struck deals to abandon the ventures in exchange for reimbursements that will be redirected towards conventional petroleum ventures.
The Department of Interior agreements pertain to BluePoint Wind, an offshore farm off the coasts of New York and New Jersey, and Golden State Wind offshore California.
Ocean Winds, a joint venture between French company Engie and EDP Renewables of Portugal, held 50 percent of both projects. A unit of BlackRock was a partner on the BluePoint windfarm.
Interior Secretary Doug Burgum said the agreements aborted projects that were "only viable when propped by massive taxpayer subsidies."
Under the accord, the BlackRock subsidiary agreed to invest up to $765 million on a U.S.-based liquified natural gas facility.
In exchange, Interior will cancel the lease and compensate for $765 million, the same sum as originally bid on Bluepoint, according to a department press release.
Golden State will be eligible to recover $120 million after an investment of that sum "in the development of US oil and gas assets, energy infrastructure, and/or LNG projects along the Gulf Coast."
Engie said both projects were at an early stage, adding that it "remains committed" to offshore wind, primarily in Asia-Pacific and Europe.
The Interior Department said the deals were similar to a U.S. accord announced last month with TotalEnergies in which the French company agreed to redirect some $928 million into an LNG project.
