US government will pay USD765m to Invenergy to exit offshore wind leases

The US government has announced that it will pay USD765m to power project developer Invenergy in order to facilitate its withdrawal from four offshore wind leases, in exchange for redirecting investments toward fossil fuel and geothermal projects in the United States instead (US Department of the Interior statement, 17/06/2026).

Under this agreement, Invenergy will allocate the refunded capital to the development of gas-fired power projects across several Midwestern states, including Indiana, Wisconsin, Iowa, Kansas, and Missouri. The company will also pursue the development of geothermal power projects in the western part of the United States.

Previously, Invenergy held offshore wind leases in the Gulf of Maine, the New York Bight, and off the coast of central California. The agreement results in the termination of four leases, which together represented several GW of potential offshore wind capacity across these regions.

This transaction is the latest in a series of similar measures announced by the administration in 2026, as part of a broader effort to halt the development of US offshore wind projects, which it considers costly and inefficient.

Earlier in June, seven US states filed a lawsuit against the administration over a separate payment of nearly USD800m made to France’s TotalEnergies to cancel an offshore wind lease off the coast of New York. The states argued that the administration did not follow proper administrative procedures and misused a government fund intended for legal settlements, despite the absence of litigation between the parties.

This payment approach follows the administration’s unsuccessful attempts to shut down other projects nearing completion, citing concerns that wind turbines could interfere with military radar systems. However, federal judges dismissed these arguments, allowing construction to proceed.