Trump's $129m Deal Scrapping Duke Energy's US Wind Projects

Duke Energy, one of the United States’ leading energy providers, has agreed to abandon its plans for an offshore wind farm off North Carolina following talks with the Trump administration.

The company will receive a US$129m settlement from the White House, with the funds set to be redirected into nuclear power, natural gas and grid modernisation projects.

The cancellation of Duke’s offshore wind lease marks another blow in US President Donald Trump’s broader push against wind energy, which has already prompted TotalEnergies to withdraw plans for two offshore projects along the Eastern Seaboard.

The US Government’s war on wind

The agreement, confirmed by Interior Secretary Doug Burgum on 29 June, relates to Duke’s Carolina Long Bay lease, located roughly 22 miles south of Bald Head Island in Brunswick County.

The site had been expected to generate enough electricity to supply more than 300,000 homes.

As part of the deal, Duke will give up the lease and commit an equivalent level of investment into alternative energy developments within the Carolinas.

This marks the fourth such agreement secured by the Trump administration since returning to office.

Alongside the March settlement with TotalEnergies – worth approximately US$1bn – the administration has also reached agreements with Ocean Winds and Invenergy, valued at US$885m and US$765m respectively.

What Duke has lost

Duke’s Carolina Long Bay site is situated adjacent to the TotalEnergies project that was cancelled earlier this year.

Both leases were originally awarded during the same federal auction round in 2022.

However, while the administration appears to have pressured Duke into surrendering its lease, reporting from the Carolina Journal indicates the company had already begun reassessing its position on offshore wind.

In regulatory filings, Duke stated that offshore wind does not currently represent the most reliable or cost-effective energy option, pointing to escalating costs, extended development timelines and surging electricity demand driven by population increases and industrial expansion.

The administration’s position

Announcing the deal, Doug Burgum strongly endorsed the agreement with Duke.

"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," he said.

"Duke Energy will now be able to convert a national security concern into projects that will lower the costs for its customers in North Carolina and surrounding states."

Duke Energy Carolinas’ EVP and CEO, Kodwo Ghartey-Tagoe, echoed this sentiment.

"This settlement allows Duke Energy to refocus US$129m in ways that directly benefit our customers and communities in the Carolinas," he said.

"Under the agreement, Duke Energy will reinvest nearly US$129m in additional generating capacity, which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability, support continued growth in the Carolinas and keep costs as low as possible."

Bloomberg reports that Duke intends to redeploy the funds before the end of the year.

A growing pattern

Trump’s opposition to wind energy became evident during his campaign and was swiftly enacted through executive orders and federal actions.

Now, after encountering mixed success, the administration’s strategy appears to have shifted towards a more transactional model.

On the first day of his second term, Trump signed an order imposing an indefinite pause on new wind farm approvals, but federal courts repeatedly blocked its enforcement.

Efforts to halt construction of projects already underway on national security grounds also faced legal challenges and injunctions.

By instead purchasing companies’ leases, the administration has effectively found a way to bypass judicial barriers, and the financial scale of these agreements is significant. 

More settlements on the horizon

European renewable energy company RWE has already stated that it expects full reimbursement for the more than US$1.2bn it spent acquiring three leases off New York, California and the Gulf of Mexico. Its CEO has indicated that legal action remains a possibility if compensation is not provided.

At the same time, the company has received an open letter from approximately 50 US organisations urging it not to comply with the administration’s approach.

“We urge RWE not to cut deals with a regime that has no respect for either legal norms or climate reality,” the letter read.

“The Trump administration will not last forever. Submitting to its fossil fuel whims sets a dangerous precedent and exposes RWE to serious reputational risk.”

The situation raises a broader question: if the US Government, as the contracting authority, no longer supports renewable energy developments, what options remain for energy companies?

Are they required to reinvest compensation into fossil fuel infrastructure, or do they retain discretion over how funds are used?

Speaking to Energy Digital earlier this year, Serene Hamsho, Founder and President of the Offshore Wind Academy, addressed the administration’s stance and its wider implications.

“It’s a significant setback for the US market in the short term, and I won’t pretend otherwise,” she said.

“When a major developer accepts a billion dollars to walk away from its US offshore wind portfolio, that signals a policy environment where long-term investment confidence has eroded.

“Capital and talent will go where the conditions are right,” she continued.

“What the US risks is falling behind in an industry it was well-positioned to lead, and that’s a real cost that will be felt in jobs and in the energy mix for years.”