TotalEnergies CEO on controversial offshore wind deal: "It's our money"
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The CEO of French oil giant TotalEnergies is defending a rare — and controversial — deal he struck last month with the Trump administration getting rid of federal offshore wind leases.
Why it matters: The comments offer a window into a deal structure other companies could pursue as President Trump moves to dismantle the nascent U.S. offshore wind sector.
Driving the news: "This type of project — offshore wind — requires many years to develop," TotalEnergies CEO Patrick Pouyanné told Axios on the sidelines of a JPMorgan Chase gathering this week in Scottsdale, Arizona.
- "If you have a change in the administration every four years and they change their minds, you invest every four years, you stop, it doesn't work. I cannot do that."
Catch up fast: Last month, Interior Secretary Doug Burgum and Pouyanné announced the U.S. would return nearly $1 billion tied to federal leases TotalEnergies secured in 2022.
- In exchange, Pouyanné said his company would re-invest that money into oil and gas projects in the U.S.
State of play: The deal has raised questions about its legality and whether U.S. taxpayer money is flowing to a foreign company. Pouyanné rejected both critiques.
"We're not taking the taxpayers' money. It's our money. We gave it in 2022," Pouyanné said.
- When asked if he thought the agreement was legal, he replied: "The legality of the agreement is a matter for the government."
The big picture: Since moving back into the White House, Trump has moved aggressively to kneecap America's offshore wind industry, which was already struggling to get off the ground due to higher borrowing costs and supply chain snags.
- Several court rulings have set back Trump's efforts, leading to the unusual move by the administration to essentially pay off a privately controlled company to relinquish its leases.
Inside the room: Pouyanné said TotalEnergies initiated the talks. "It came from us — we took the initiative," Pouyanné said.
- The alternative, he said, was more litigation. "I cannot accept losing $928 million dollars," Pouyanné said.
How it works: Pouyanné said his company would keep pursuing offshore wind in Germany, the United Kingdom and France. But he says it's "too expensive" for countries like Brazil, the Philippines, India, in addition to the U.S.
- Pouyanné said he will "never" pursue offshore wind again in the U.S., citing political volatility and relatively low power prices.
The intrigue: TotalEnergies — which rebranded from Total in 2021 to reflect a broader energy strategy — remains more committed to renewables than most other oil and gas producers.
- The company is still investing in U.S. onshore wind, solar and battery storage, which Pouyanné said can compete with natural gas.
What we're watching: Whether similar deals emerge for other offshore wind leaseholders.
- Pouyanné said other companies have reached out, but are "not exactly in the same position."
