On Monday, the Trump administration announced a $129 million payment to Duke Energy to terminate its offshore wind farm project off the coast of North Carolina.
This marks the fourth agreement the administration has made to curb offshore wind development, a renewable energy source that President Trump has long criticized.
According to the deal, Duke Energy will relinquish its federal‑water lease for a wind farm planned in the Carolina Long Bay region, about 15–22 miles off southeastern North Carolina. The project remained in early development stages with construction not yet started.
The government will reimburse Duke Energy $129 million, slightly less than the lease cost paid under the Biden administration. Duke Energy intends to redirect those funds toward energy sources favored by the Trump administration, such as new nuclear and natural‑gas projects.
Scientists and environmentalists argue that offshore wind farms could be vital in combating climate change. Unlike fossil‑fuel power plants, wind turbines emit no greenhouse gases, and unlike large‑scale solar farms, they require minimal land use.
The Trump administration, however, has labeled offshore wind projects as visually unappealing and inefficient.
In a statement on Monday, Interior Secretary Doug Burgum said, “President Trump’s vision of unleashing affordable, reliable American energy for our country’s communities and using common sense to put the American people first is being implemented.”
Burgum reiterated his earlier claim that offshore wind farms pose national‑security risks. Last year, the Interior Department halted construction of five East Coast wind farms on the grounds that turbine blades could interfere with military radar. Federal judges subsequently overturned those stop‑work orders, finding the administration’s arguments unconvincing.
Following its court losses, the administration adopted a new approach: paying developers to abandon offshore wind projects. In March, it executed its first such agreement with the French energy firm TotalEnergies.
The agreement required the government to pay TotalEnergies close to $1 billion to cancel plans for two wind farms — one off New York and another in the same North Carolina area. Seven Democratic‑controlled states have filed suit, alleging the deal constitutes an illegal use of taxpayer funds.
The Duke Energy deal brings the total federal commitment to over $2.5 billion for terminating offshore wind leases.
Duke Energy, headquartered in Charlotte, North Carolina, is among the nation’s largest utilities, serving about 8.7 million electricity customers across six states and 1.6 million natural‑gas customers in four states.
Kodwo Ghartey‑Tagoe, executive vice president and CEO of Duke Energy Carolinas, said the settlement enables the company to redirect the $129 million toward initiatives that benefit customers and communities in the Carolinas.
Duke Energy spokesperson Riley Cook said in an email that the $129 million would be directed toward reliable, diverse energy sources to meet rising electricity demand. He indicated the funds could support new nuclear reactors and grid‑infrastructure projects in the Carolinas, though no specific details were provided.
Pasha Feinberg, an offshore‑wind strategist with the Natural Resources Defense Council, noted that the cancelled wind project could have contributed to meeting soaring power demand.
Feinberg emphasized, “We need more electricity, not less.” She added that canceling clean‑energy projects is self‑defeating and that paying companies to abandon them is ludicrous.
Spokespersons for North Carolina Governor Josh Stein, a Democrat, did not immediately comment on the matter. In March, Stein sharply criticized the TotalEnergies agreement, stating that his state required the clean energy and quality jobs the Carolina Long Bay project would have provided.
