U.S. Department of the Interior cancels additional offshore wind leases

The U.S. Department of the Interior has announced agreements to cancel offshore wind leases for Bluepoint Wind and Golden State Wind, tying the terminations to new investments in liquefied natural gas, oil, and conventional energy infrastructure.

Under the Bluepoint Wind agreement, Global Infrastructure Partners, a part of BlackRock and a co-owner of the project, has committed to invest up to $765 million — the original lease bid amount — into a U.S.-based liquefied natural gas facility. Following that investment, the Department of the Interior will cancel Lease No. OCS-A 0537 and reimburse the company’s bid payment in an equivalent amount. Bluepoint Wind has also decided not to pursue additional offshore wind development in the United States.

In a separate agreement, Golden State Wind will voluntarily terminate its offshore wind lease in the Morro Bay Wind Energy Area in California (Lease OCS-P 0564). The company will be eligible to recover approximately $120 million in lease fees after making an equal investment in U.S. oil and gas assets, energy infrastructure, or liquefied natural gas projects along the Gulf Coast. Golden State Wind has also stated it will not pursue new offshore wind projects in the United States.

According to the Department of the Interior, the agreements are structured to provide dollar-for-dollar reimbursement tied to investments in domestic energy development. Federal officials said the offshore wind projects were no longer practical to advance without taxpayer subsidies, prompting a shift toward established energy sources.

Secretary of the Interior Doug Burgum said the agreements are intended to support affordable and reliable energy for U.S. consumers while encouraging investment in infrastructure capable of delivering consistent power.

The Department of Justice supported the agreements. Associate Attorney General Stanley E. Woodward, Jr. said the deals avoid extended litigation and are designed to benefit taxpayers by linking reimbursements to new energy investments.

Company representatives said the agreements provide clarity for future capital allocation. Salim Samaha of Global Infrastructure Partners said the resolution allows for continued investment in conventional and other energy sources aligned with U.S. energy independence goals.

Michael Brown, CEO of Ocean Winds North America, which holds ownership stakes in both projects, said the company will focus on disciplined investment strategies and long-term energy solutions.

The agreements follow a similar recent arrangement involving TotalEnergies and reflect a broader federal effort to redirect capital from offshore wind development toward liquefied natural gas, oil, and other conventional energy infrastructure.