Interior Announces Two Historic Agreements to Promote Affordable, Reliable Energy Production in the United States

WASHINGTON — Today, the Department of the Interior announced two additional separate agreements to promote U.S. energy security and affordability following the model of its recent deal with TotalEnergies. Under the new agreements, Bluepoint Wind and Golden State Wind have each separately agreed to voluntarily end their offshore wind leases, with the respective affiliate companies agreeing to make financial investments in reliable conventional energy projects.

These historic agreements provide dollar-for-dollar reimbursement for offshore wind leases that have been impractical to develop without relying on taxpayer subsidies. By cancelling these leases and promoting investments away from intermittent, higher-cost energy sources toward proven conventional solutions, these agreements support mutually beneficial investments that will now generate returns for American taxpayers. Additionally, these investments advance President Donald J. Trump’s Energy Dominance Agenda to leverage the nation’s natural resources to benefit American citizens and help lower everyday energy costs.

“President Trump is focused on providing affordable and reliable energy to American citizens,” said Secretary of the Interior Doug Burgum. “The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies. Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure. We welcome each of the projects’ willingness to actually support baseload power and lower utility bills for American families. In addition, the agreements resolve the unaddressed national security concerns at both projects.”

“The Department of Justice is committed to working with parties to reach agreements that are in the best interests of the Nation and the American people – protracted litigation benefits neither, and I am proud to have helped facilitate today’s historic deals that advance the President’s Energy Dominance Agenda,” said Associate Attorney General Stanley E. Woodward, Jr., adding that, “Under these agreements, the American taxpayer will be the beneficiary and not a source of endless subsidies for these types of projects.”

“We appreciate the very constructive engagement with Secretary Burgum and the Department of the Interior and are pleased to have reached a practical resolution based on our shared commitment to pragmatic outcomes. We look forward to continuing to deploy capital into conventional and other energy sources in furtherance of the twin goals of increasing US energy independence and affordable energy,” said Salim Samaha, Chair of Midstream & LNG, Global Infrastructure Partners, a part of BlackRock, a 50% owner of Bluepoint Wind.

“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal. Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders,” said Michael Brown, CEO of Ocean Winds North America, a 50% owner of Bluepoint Wind and Golden State Wind.

Background information:

Bluepoint Wind agreement:

Global Infrastructure Partners, a part of BlackRock, has committed to invest up to $765 million, the original bid amount for the Bluepoint Wind offshore wind project (Lease No. OCS-A 0537), into a U.S.-based liquefied natural gas (LNG) facility. Following this accelerated investment, Interior will cancel the lease and reimburse the company’s bid payment in the amount invested in the LNG project. Additionally, Bluepoint Wind has decided not to pursue any new offshore wind developments in the United States.

Golden State Wind agreement:

Golden State Wind has committed to voluntarily end its offshore wind lease located in the Morro Bay Wind Energy Area, California (Lease OCS-P 0564). Under the terms of the agreement, Golden State Wind will be eligible to recover approximately $120 million in lease fees after an investment has been made of an equal amount in the development of U.S. oil and gas assets, energy infrastructure, and/or LNG projects along the Gulf Coast. Golden State Wind has also decided not to pursue any new offshore wind projects in the United States.

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