lodeUS and TotalEnergies reach 'nearly $1B' deal to end offshore wind projects
Do I have it right that the two projects that this deal kills off haven't seen any construction work yet? These aren't among the projects that the stop work orders were issued against in December, right?
My quick skim, I think you are right. This is getting them to halt new development, by buying them off with the equivalent of the subsidies the current administration cancelled.
>by buying them off with the equivalent of the subsidies the current administration cancelled
no, the billion that is being "paid" is a refund of what Total paid in for the leases. Total paid that into the US govt in anticipation of receiving returns on that investment in the form of "clean energy subsidies".
it is not clear from what is in the news story whether Total is being compensated for the would-have-been future subsidies, or whether Total simply expects to make decent profits from fossil fuels.
if one's interest is in the "clean energy" angle, then this is a "defeat". if one's interest is in reducing govt subsidies, this could be "a win", but it's not exactly clear.
These ones no construction had been started yet AFAIK.
If AI summery is to be trusted, a few other windparks got stopped that where almost done, but got completed anyway after a legal battle. Vineyard Wind 1, Coastal Virginia (CVOW), Empire Wind 1, Revolution Wind, Sunrise Wind.
Again, got it from AI, make of that what you want.
The feds have dropped their attempts to stop those from ongoing construction for now, but only one of those projects is complete.
CVOW is supposed to flow first power this month, but won't be done for ~a year, Empire Wind is also end of '26/early '27, Sunrise later in 2027.
Vineyard was completed this month, and Revolution is delivering power and targets completion over the next few months.
The guy is unhinged, hellbent on denial, just to appease his base, who are going bankrupt because of his policies. Would he pay Sun as well to stop shining over the US?
https://fee.org/articles/the-candlemakers-petition/ This feels relevant
The overrated and very annoying "sun", the so-called "star" that our planet goes around has been going unquestioned for too long! Many people have been asking for a long time, perhaps even before Obama, to remove the sun from the sky and replace it with our beautiful clean coal towers!
"Since the beginning of time man has yearned to destroy the sun" - Charles Montgomery Burns
I Call This Enemy: The Sun (The Simpsons)
Relevant power metal song:
https://www.youtube.com/watch?v=z769xf9ET5A
https://www.youtube.com/watch?v=z769xf9ET5A
ARMY OF TIGERS - (Power Metal song by Jonathan Young)
I had this big guy, very big guy with tears streaming down his cheeks asking me "Sir can you take down that woke star that keeps me awake"
It's even stupider than that, it's not even to appease his base, it's a personal grudge. Trump sued a wind energy company to prevent them from building an off-shore wind farm in view of his golf resort in Scotland. He lost that case badly and he has been railing against wind energy specifically ever since.
So far Trump hasn't done much to prevent solar farms from being built, it's only wind turbines that he's exacting his vengeance on like some sort of modern day Don Quixote.
> The guy is unhinged, hellbent on denial, just to appease his base, who are going bankrupt because of his policies.
In the middle of a war he started over war. No less. If his base wanted cheap gas, they are not going to get it.
Serious question, but not entirely related to the topic - how are “smart” people in the US preparing for the next 20-30 years?
- Assume everything will be fine and America will remain a global economic superpower.
- Plan an exit to a more serious, stable country.
- Some option in the middle of the two to hedge your bets?
I'm investing in property in places that will allow me to get permanent residency without jumping through too many hoops.
You theoretically lose yield compared to the S&P average - but if you're hedging your bets against the US possibly going to shit - the S&P is unlikely to perform as well as its historic average IFF that scenario unfolds.
Seems like a better hedge than gold, but my crystal ball isn't working.
D) Die. I'll reach my expected lifespan by then. If possible, move to a serious, stable country before then.
Smart people know that you can't predict or plan for anything on anywhere close to that time horizon. The only plan is be adaptable.
You can build contingencies and hedge bets. You can plan. You just can't predict what will happen so it's playing the odds.
I don't know if I qualify for "smart" but my plan has been to keep one foot in the US and one foot in Europe.
I saw the writing on the wall long ago. I predicted all of this happening many years ago. I left the US back in 2015.
Currently in the UK, and I hope to eventually get dual citizenship. My partner is European, so that is possible too.
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HN title (currently reads "US govt pays TotalEnergies nearly $1B to stop US offshore wind projects") is editorialized and it's unclear to me whether it's accurate. The article says:
> We're partnering with TotalEnergies to unleash nearly $1 billion that was tied up in a lease deposit that was directed towards the prior administration's subsidies
What's the deal with this lease deposit and how does "freeing it up" equate to the US govt "paying" TotalEnergies that amount?
Is this a situation where TotalEnergies put down a 1B deposit to lease the seashore from the government and the government is now canceling that agreement and giving them their money back? How does it relate to "subsidies"?
Not sure how it relates to subsidies, but it is what you said. The government is cancelling wind shore projects leased to TotalEnergies under the Biden admin for ~$930 million.
The Trump admin is paying them back with the understanding that TotalEnergies will reinvest the money into oil and gas operations in the US
You could go to the source and see[1].
> TotalEnergies has committed to invest approximately $1 billion—the value of its renounced offshore wind leases—in oil and natural gas and LNG production in the United States. Following their new investment, the United States will reimburse the company dollar-for-dollar, up to the amount they paid in lease purchases for offshore wind. Under this innovative agreement driven by President Donald J. Trump’s Energy Dominance Agenda, the American people will no longer pay for ideological subsidies that benefited only the unreliable and costly offshore wind industry.
> For its part, TotalEnergies will invest $928MM, on the following projects in 2026:
The development of Train 1 to 4 of Rio Grande LNG plant in Texas;
The development of upstream conventional oil in Gulf of America and of shale gas production.
Following TotalEnergies’ $928 million in investments in affordable, reliable and secure U.S. energy projects, the United States will terminate the following leases and reimburse the company
[1] https://www.doi.gov/pressreleases/interior-and-totalenergies...
Interior and TotalEnergies Agree to End Offshore Wind Projects, Lowering Costs for American Families | U.S. Department of the Interior
Today, the Department of the Interior announced a landmark agreement with TotalEnergies for the company to redirect capital from expensive, unreliable offshore wind leases toward affordable, reliable natural gas projects that will provide secure energy for hardworking Americans
Thanks, that's helpful. Pretty annoying the original article didn't link to its source given that it was just repeating the contents of a press release.
Anyone know what these "ideological subsidies" are that they're referring to? Were they part of the agreement that was just terminated? Or was that just a vaguely related talking point they inserted into the press release for political reasons?
"ideological subsidies" for this administration means any policy supporting non-thermal and non-battery (to a lesser extent, although their lobby has pretty successfully extracted them from previous renewable associations they relied on) generating units.
To get more specific, you could say everything rolled back from the IRA as part of the BBB.
If it's just BBB they're referring to then I would call that a political talking point since that doesn't seem directly related to this deal.
Unless the subsidies being repealed explains why TotalEnergies seems happy to get out of the lease now even though they presumably thought it was a good deal for them back when they originally agreed to it. If that's true though then I don't know why neither the article nor the press release say anything about it other than in this vague allusion.
NY Times phrases it as a reimbursement to TotalEnergies for relinquishing wind leases that they paid for. The US made the reimbursement contingent on them investing in fossil fuel projects. "The deal is an extraordinary transfer of taxpayer dollars to a foreign company for the purposes of boosting the production of fossil fuels."
Total waste of $1 Bil of taxpayer dollars. If the oil and gas industry want to shut down wind projects let them pay for it.
Why would they do that when they already paid for a corrupt new regime to do it for them?
So TotalEnergies agreed to invest 1 billion is offshore wind during thr last Administration. The current Administration doesn't want any investment in renewables so they attempted to block it. A judge said the attempted block was unlawful. So then immediately the admin said something new and that instead there were "national security concerns" with building wind plants - (Which doesn't pass the smell test to me at all) and the project would be held up while untangling those.
My assumption is the company started getting upset at being toyed around and having their 1 billion investment completely stalled for so long. So the admin said we'll kill the wind if you do our fossil fuels instead. So shift your investment away from wind (we kill it and pay you back for what you investws) if you instead do fossil fuels. And that's what's being done.
So previously the company was spending 1billion on wind and getting some subsidies. Now they spend 2 billion, and get paid 1 billion from the tax payer. For them it's at best a wash, though likely a loss since I haven't heard they get subsidies with the fossil fules. And the tax payer instead of paying for tax credits or low interest loans or other subsidies that were part of wind power portion of the Inflation Reduction Act instead pay a full 1 billion dollars to the company.
> The Trump administration will pay $1 billion to a French company to walk away from two U.S. offshore wind leases as the administration ramps up its campaign against offshore wind and other renewable energy.
1. https://apnews.com/article/trump-offshore-wind-energy-climat...
US to pay TotalEnergies to drop offshore wind leases
The Department of Interior says a French energy company has agreed to give up two U.S. offshore wind leases and invest in fossil fuel projects instead. The department said Monday that TotalEnergies committed to invest approximately $1 billion in oil and natural gas production in the United States. That is the amount the company paid to purchase leases to develop offshore wind off the coasts of North Carolina and New York. The Trump administration has tried to halt offshore wind construction, but federal judges overturned those orders. These settlements are a different way of stopping U.S. offshore wind development. President Donald Trump has gone all in on fossil fuels.
They are taking money committed to a wind project and redirecting it towards burning fossil fuels - because what other lesson can we take from a global energy shock other than to increase our exposure to the next one? The company itself (France's Total) had already committed to the wind deal, so now the Trump admin is letting them off the hook, and using Trump's irrational refusal to issue licenses for wind power as the excuse for why the deal wasn't working out as originally planned.
Total is also committed to expanding LNG - Total [0] and Oil India [1] are collaborating on a $20 Billion LNG extraction megaproject in Mozambique which was paused due to an Islamist insurgency during which Total-and-Oil India-funded forces allegedly committed massacres against civilians [2].
The US, France+India, and China have been competing over this project for decades.
These are businesses - no one cares about morals, only interests. And it is in France's interest to unlock these kinds of LNG projects.
[0] - https://www.reuters.com/business/energy/mozambique-says-tota...
[1] - https://www.reuters.com/business/energy/oil-india-sees-resta...
I drive commercially.
There are no fully electric, or even hybrid, options for the type of vehicle I drive.
And even if there were, are you (tax payers) prepared to buy it for me, because I’m not due for an upgrade for about another 400,000 kilometres.
Can’t put wind generated watt-hours in my diesel tank.
Can’t put wishful thinking in my cars petrol tank.
We don't know some important specifics about the deal but (IMHO) that's on purpose and is telling, meaning you only end up obscure deal details because you have something to hide.
So I don't know what stage the project was at but by withdrawing from the deal or cancelling it, the government is going to have to pay a penalty. Is that penalty $10 million? Is it $500 million? We don't really know.
So it could be that TotalEnergies is still getting paid $1 billion but now they have to spend $600 million on some fossil fuel project. But in doing so the government has essentially paid a $400 million break penalty. You see what I mean?
I don't believe for a second that the government didn't lose money on this political cancellation. The fossil fuel project is just a way to hide that and save face (IMHO).
If the government would like to pay me to also not build wind turbines, hit me up. I mean, I wasn't going to build any in the first place, but I think this makes me qualified to continue not building any.
I think it’s in part returning money this company paid the government
> [Major Major’s father's] specialty was alfalfa, and he made a good thing out of not growing any. The government paid him well for every bushel of alfalfa he did not grow. The more alfalfa he did not grow, the more money the government gave him, and he spent every penny he didn’t earn on new land to increase the amount of alfalfa he did not produce. Major Major’s father worked without rest at not growing alfalfa. On long winter evenings he remained indoors and did not mend harness, and he sprang out of bed at the crack of noon every day just to make certain that the chores would not be done. He invested in land wisely and soon was not growing more alfalfa than any other man in the county….
Catch 22 by Joseph Heller