Finance
US Weighs Settlement of About $1 Billion With TotalEnergies for Blocking Wind Farms, Nyt Reports
Published by Global Banking & Finance Review®
Posted on March 17, 2026
2 min readLast updated: March 17, 2026
Quick Summary
U.S. officials are reportedly preparing to settle with TotalEnergies for about $1 billion following cancellations of its offshore wind leases in federal waters near New York and North Carolina, sources told the New York Times. The move reflects growing legal and political risks in U.S. offshore wind
US weighs near $1 billion settlement with TotalEnergies for abandoning wind farms, NYT reports
Settlement Details and Background
Drafting of Settlement Agreements
March 17 - U.S. officials are drafting agreements to pay French oil major TotalEnergies about $1 billion in settlements due to the cancellation of leases for its wind farms in federal waters off New York State and North Carolina, the New York Times reported on Tuesday.
Terms of the Proposed Settlements
Cancellation of Leases
Under the terms of the proposed settlements, the U.S. Interior Department will cancel the leases in federal waters for two projects, known as Attentive Energy and Carolina Long Bay, the NYT said, citing documents.
Compensation to TotalEnergies
The Justice Department will then pay more than $928 million to TotalEnergies, compensating the firm for its winning bids in lease sales under the previous Biden administration, according to the NYT report.
Responses and Verification
The White House, the U.S. Department of Justice, the U.S. Department of Interior and TotalEnergies did not immediately respond to Reuters requests for comment. Reuters could not immediately verify the report.
Project Background
Attentive Energy Offshore Wind Project
The French energy group had formed a joint venture in October 2023 for the development of the Attentive Energy offshore wind project off the coast of New York. In November 2024, it said it had paused the development of the wind farm after Donald Trump's U.S. presidential election victory.
Carolina Long Bay Project
The company won a lease for the Carolina Long Bay project in 2022.
Aftermath and Future Commitments
Abandonment of Wind Farm Plans
Following the settlement, TotalEnergies will abandon its plans to begin building the wind farms. It would also commit to investing in natural gas infrastructure in Texas, the report said.
Challenges for Offshore Wind Developers
Offshore wind developers have faced repeated disruptions under U.S. President Donald Trump, who has said he finds wind turbines ugly, expensive and inefficient.
Reporting Credits
(Reporting by Kanjyik Ghosh in Barcelona; Editing by Aidan Lewis and Pooja Desai)
Key Takeaways
- •The proposed $1 billion settlement would compensate TotalEnergies for canceled offshore wind leases in U.S. federal waters, as reported by the New York Times
- •This development underscores the escalating legal and financial uncertainty facing offshore wind developers, especially amid the Trump administration’s broad rollback of wind energy leasing and funding (apnews.com)
- •TotalEnergies had secured major lease areas—such as the 3 GW New York Bight project and leases off North Carolina—highlighting the high stakes of these cancellations for both the company and U.S. renewable energy goals (totalenergies.com)
References
Frequently Asked Questions about US weighs settlement of about $1 billion with TotalEnergies for blocking wind farms, NYT reports
1Why is the US considering paying TotalEnergies $1 billion?
The payment is considered as settlement for the cancellation of leases for TotalEnergies' wind farm projects in federal waters off New York and North Carolina.
2Which locations are affected by the cancelled wind farm leases?
The cancelled wind farm leases relate to federal waters off the coast of New York State and North Carolina.
3Who reported the possible settlement between the US and TotalEnergies?
The New York Times reported the possible $1 billion settlement between US officials and TotalEnergies.
4Has the $1 billion settlement been officially confirmed?
No, the report has not been immediately verified by Reuters at the time of publishing.
