California (US) challenges cancellation of the 2 GW Golden State wind project

The US State of California has filed a lawsuit against the Trump administration and offshore wind developer Golden State Wind over an agreement that terminated a planned offshore wind project off the state’s Central Coast in exchange for a USD120m federal reimbursement and a commitment to invest in fossil fuel projects in US oil and gas assets, energy infrastructure, and/or LNG projects along the US Gulf Coast (California Department of Justice statement, 28/08/2026).

California alleges that the Department of the Interior (DOI) unlawfully used USD120m in Californian taxpayer funds to reimburse Golden State Wind for surrendering an offshore wind lease that it acquired in a 2022 auction. Golden State Wind is a joint venture between Ocean Winds, a partnership between France’s ENGIE and Portugal’s EDP Renewables, and Reventus Power, a London-based offshore wind investment firm.

Golden State Wind had planned a 2 GW floating offshore wind project off California’s Central Coast. “The lease buyout jeopardizes thousands of high-quality jobs and the State’s investments in the offshore wind industry, including from voter-approved climate bonds. The canceled projects also threaten to set back California’s burgeoning offshore wind industry by years”, said the California Department.

In April 2026, the US Department of the Interior (DOI) announced that it would terminate the lease under an agreement with Golden State Wind. The DOI cited unspecified national security concerns as justification for the cancellation, despite the federal government having already reviewed and approved the lease area following years of analysis and consultation with the US Department of Defense. Under the agreement, the federal government would unlawfully "reimburse" the company with USD120m from the Judgment Fund, while Golden State Wind would withdraw from offshore wind development in California, according to the statement. Ocean Winds and its partner Global Infrastructure Partners (a unit of asset manager BlackRock) also agreed to terminate their proposed 2.4 GW Bluepoint Wind offshore wind project off the coast of New York and New Jersey, not to pursue any new offshore wind developments in the United States, and to invest USD765m, the initial bid amount for Bluepoint Wind, in a US LNG facility.

Several companies reached similar agreements with the US government to scrap their offshore wind projects, as part of the administration’s strategy to hinder offshore wind development since Trump’s return to the White House.

• In March 2026, TotalEnergies reached an agreement with the DOI to redirect USD928m from offshore wind leases to US oil and gas production. Refunded lease fees will fund the 29 Mt/year Rio Grande LNG plant construction and Gulf of Mexico oil and gas development. The company also signed a LOI with Glenfarne (Alaska LNG lead developer) for 2 Mt/year LNG offtake over 20 years (KEI, 25/03/2026).
• More recently, in August 2026, RWE also reached a settlement with the US Department of Interior (DOI) to resolve claims against the US government and relinquish its offshore wind leases off the coasts of New York, California, and Louisiana. The company plans to deploy its capital on the acquisition of a 16% stake in the Louisiana LNG project (USD900m), and the signature of a USD300m natural gas turbine reservation agreement (KEI, 10/08/2026)