The Trump administration will pay energy companies hundreds of millions of dollars to abandon their plans to build two wind farms off the U.S. coast, the Interior Department said Monday, in a repeat of a tactic the government used to cancel other offshore wind projects.
The payments, which could total over $500 million, are intended to compensate developers for costs incurred in planning and permitting the projects. The two wind farms, located off the coasts of New Jersey and Massachusetts, were in early stages of development.
Interior Secretary Doug Burgum said the administration is prioritizing energy independence through fossil fuels and nuclear power, and that offshore wind projects are not economically viable without federal subsidies. Environmental groups criticized the move, arguing it undermines efforts to combat climate change.
The administration has now canceled or delayed at least five offshore wind projects since taking office, using similar buyout agreements. The payments are funded through the Bureau of Ocean Energy Management's budget.
