The Trump administration announced a $765 million buyback of four offshore wind leases from Invenergy, bringing total reimbursements for such deals to about $2.6 billion and allowing Invenergy to redirect funds to natural gas and geothermal projects.

Leading Light Wind off New Jersey was the largest canceled project, with other leases off Maine and California affected as part of the strategy.

Invenergy’s broader portfolio includes roughly 125 land-based wind farms, more than 60 solar projects, nearly 30 battery storage projects, and ongoing planning for additional ventures.

Officials argue the strategy shifts investments toward baseload power that can reliably deliver electricity, while critics say replacements won’t serve the same states or improve affordability and reliability.

The deal was announced on a Wednesday before mid-June, according to Law360.

Industry observers describe offshore wind as intermittent and unreliable in the administration’s narrative, while critics contend the deals undermine domestic wind energy development and jobs.

This year the administration has pursued multiple measures to rollback clean energy policies, drawing criticism from Democrats and clean-energy advocates.

The payout is framed as a move to redirect cash into U.S. oil and gas development.

Ongoing investigations and lawsuits related to the buybacks and challenges to these agreements are in play, including actions in New York and California.

Critics, including Turn Forward’s Hillary Bright, argue that replacing offshore wind with fossil or geothermal projects does not address regional reliability, affordability, or power gaps in the Northeast and mid-Atlantic.

California officials and environmental groups are likely to challenge the legality and impact of these deals, even as the state pursues offshore wind toward a 25 GW target by 2045.

Invenergy cites growing electricity demand—potentially up to 40% in the next decade driven by AI data centers—as a rationale for shifting toward natural gas and geothermal.