Germany's RWE drops US offshore wind projects in deal with Trump

German energy giant RWE is abandoning several planned offshore wind projects in the United States after reaching a $1.22-billion settlement with the administration of President Donald Trump, the company said on Thursday, reported dpa.

"RWE US Offshore has reached a settlement with the US Department of the Interior to resolve claims against the US government and relinquish its offshore wind leases off the coasts of New York, California, and Louisiana," the company said in a statement.

RWE said it had invested more than $1 billion in securing the leases and developing the projects.

"After careful consideration, it was determined there is no path forward to permit these projects in the US for the foreseeable future," the company said.

RWE now plans to redirect investment towards liquefied natural gas infrastructure and other gas projects in the United States.

Trump is a vocal opponent of wind power and favours electricity generated from coal. He has repeatedly described wind turbines as ugly and criticized other countries for buying and using them, referring to renewable energy policies as a "green scam" and "perhaps the greatest hoax in history."

US Secretary of the Interior Doug Burgum told dpa Americans "deserve an energy system built on common sense, not one dependent on costly subsidies or technologies that can't meet our country’s current demand.

"We welcome RWE’s agreement and voluntary investment in projects that strengthen our nation's energy security, provide dependable baseload power, and help keep electricity affordable for hardworking Americans today while supporting our country's long-term energy future," he said.

An Interior Department spokesman added that offshore wind energy remained heavily dependent on foreign supply chains.