RWE U.S. Offshore has reached a $1.22 billion settlement with the U.S. Department of the Interior and will relinquish its offshore wind leases off New York, California and Louisiana.

The settlement resolves RWE U.S. Offshore’s legal claims against the U.S. government. The company said it determined there is no foreseeable path to permitting the projects in the United States.

RWE invested more than $1 billion in the leases and development of the offshore wind projects. The leases provided the company with rights to develop offshore projects in U.S. waters.

Under the settlement, RWE will receive $1.22 billion and redeploy the capital toward other U.S. energy projects.

RWE Americas and its affiliates are expanding investments in liquefied natural gas (LNG) infrastructure and natural gas-fired power generation. The company has committed $900 million to acquire an indirect 16% stake in the Louisiana LNG project. The investment will support construction of the terminal.

RWE also signed a $300 million turbine reservation agreement to secure future natural gas generation capacity. The company is developing a portfolio of 15 natural gas peaking projects across targeted U.S. markets.

The RWE agreement is the fifth and largest in a series of deals the Trump administration has made to stop clean energy projects and transition the investments into fossil fuels. Following an April agreement with TotalEnergies, six states led by New York have sued the administration claiming that the cancellation of two offshore wind leases violates the Outer Continental Shelf Lands Act.

Separately, RWE Americas plans to invest approximately €17 billion in the United States over the next six years. The company expects to increase its U.S. generation capacity from approximately 13 gigawatts across 27 states to 22 gigawatts by 2031.

RWE commissioned 2 gigawatts of new U.S. power generation capacity in 2025. The company said its investments will support growing electricity demand, grid reliability and energy security.

RWE will continue developing offshore wind projects outside the United States. The company currently has 18 offshore wind farms in operation, four under construction and additional projects in development.