RWE is reportedly considering a deal to exit the US offshore wind market; advocacy groups and the industry warn that there is "no basis under US law" for refunding the lease purchase.

RWE is reportedly exploring a deal with the Trump administration to relinquish US offshore wind leases in exchange for investments in fossil fuels, prompting over 50 US organizations to call on the company to discontinue these negotiations.

In a letter to RWE CEO Markus Krebber, the groups cautioned against “trading renewable for fossil fuel investments” and stated that moving away from offshore wind in favor of fossil fuels could put RWE at financial risk and harm its reputation in the future.

“We urge RWE not to make agreements with a regime that disregards both legal standards and climate realities. The Trump administration won’t be in power indefinitely. Yielding to its fossil fuel demands sets a perilous precedent and poses significant reputational risks for RWE,” the letter stated.

The organizations condemned the reported attempts by the Trump administration to pressure offshore wind leaseholders into shifting investments toward US LNG infrastructure, arguing that offshore wind is still “more affordable and dependable than LNG.”

If RWE pursues an agreement to exit offshore wind with the US government, it would become the third developer to do so, following TotalEnergies and Ocean Winds, both of which have agreed to relinquish their offshore wind lease areas in exchange for refunds on lease payments and commitments to invest in fossil fuel projects in the US.

Before news surfaced about RWE considering a similar deal, a source from the US offshore wind sector mentioned to offshoreWIND.biz that the agreements are not finalized as reported.

“These agreements are not yet conclusive and are under review — they may not even be legal,” the source stated.

This concern was echoed by the 50 organizations that contacted RWE, which asserted that there is “no legal justification under U.S. law” for the federal government to refund offshore wind leases that were acquired legitimately through federal auctions.

The letter also pointed out RWE’s investments related to LNG, including agreements tied to Port Arthur LNG, Texas LNG, and the Brunsbüttel LNG import terminal, arguing that these projects contradict the company’s climate commitments and raise environmental justice issues.

In the US, RWE has a 6 GW offshore wind seabed portfolio, which includes the Community Offshore Wind project off New York and New Jersey, as well as the 1.6 GW Canopy floating wind project near Humboldt County in California.

Last April, RWE’s CEO Marcus Krebber indicated that the company was halting all activities in the US offshore wind sector due to political uncertainties.

Meanwhile, in Europe, RWE, alongside TotalEnergies and Ocean Winds, continues to develop, construct, and operate offshore wind farms, with all three companies achieving new milestones in their offshore wind projects recently.

TotalEnergies has submitted an authorization application for a 1.5 GW project in France, while Ocean Winds recently finished building one of its offshore wind farms and received full onshore planning consent for a 2 GW offshore wind farm in Scotland.

RWE is close to finishing its 1.4 GW Sofia offshore wind farm in the UK, where it has also started new projects recently awarded Contracts for Difference (CfD) and has received development consent for two additional offshore wind farms. Furthermore, the company is expected to soon complete Denmark’s largest offshore wind farm, Thor, and has begun work on a 1.6 GW project in Germany.