The United States and French energy company TotalEnergies agreed Monday to halt offshore wind projects and redirect investment into conventional energy.
In a statement, the US Department of the Interior said TotalEnergies would invest about $1 billion, roughly equal to the value of its canceled offshore wind leases, into oil, natural gas and liquefied natural gas (LNG) production in the country.
"Additionally, in light of the national security concerns, TotalEnergies has pledged not to develop any new offshore wind projects in the United States," the statement added.
As part of the agreement, the US government will reimburse the company dollar-for-dollar, up to the amount it originally paid for offshore wind lease purchases.
TotalEnergies is expected to invest $928 million this year in its Rio Grande LNG facility in Texas, as well as in oil and shale gas production projects in the Gulf of Mexico.
Reporting by Dilara Zengin Okay in Washington
Writing by Handan Kazanci
Anadolu Agency
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