French utility Engie is in discussions with the U.S. administration over a possible refund tied to its offshore wind lease agreements, CEO Catherine MacGregor said on Tuesday. The negotiations are taking place against a backdrop of U.S. policy that has shown clear opposition to offshore wind development.
MacGregor characterized an agreement as possible depending on the outcome of those talks. She said the company would "see about these terms, an agreement is possible depending on the discussions." She added that a forthcoming change in government could alter the permitting landscape, saying: "But honestly ... there’s going to be a change in government, and I think (offshore wind permitting) comes back."
The discussions follow an announcement from French oil major TotalEnergies that it has redirected nearly $1 billion (850 million euros) previously earmarked for U.S. offshore wind leases toward domestic oil and natural gas production in the United States.
Engie has already taken steps in response to the altered U.S. policy environment. The company has paused three U.S. offshore wind projects that were in development and has booked impairments for its Ocean Winds joint venture since the U.S. administration changed hands last year. Those moves reflect the company’s reassessment of the commercial prospects for those assets under current policy conditions.
MacGregor defended offshore wind on economic and social grounds. "Economically and also in terms of public acceptance, I strongly believe in offshore wind power," she said, adding that careful project planning and stakeholder engagement are necessary: "Of course, you have to plan the projects well, you have to involve the fishermen."
The comments and actions by Engie and TotalEnergies underscore a shift in investor and developer calculations for U.S. offshore wind projects while U.S. policy preferences lean toward boosting domestic fossil fuel production.
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