The US government is preparing a nearly $1bn settlement to reimburse TotalEnergies for the cancellation of two federal offshore wind leases.

Reportedly, the proposed deal would see the Interior Department withdraw leases for the Attentive Energy project in the New York Bight and the Carolina Long Bay project off North Carolina. The Justice Department would then pay TotalEnergies more than $928m, effectively reimbursing the company for its winning bids in lease sales under the previous Biden administration.

The move would end development of both projects and remove TotalEnergies from the US east coast offshore wind portfolio. It also signals a shift in federal policy, reinforcing earlier administrative actions aimed at slowing or reversing offshore wind awards.

Reports indicate that the French energy group could reject the settlement, but the Trump administration reserves the right to cancel the leases regardless, potentially triggering litigation. Even if the company refused, the projects would still depend on approvals from an administration hostile to wind farms.

In return for the reimbursement, TotalEnergies would reportedly commit to accelerating investments in natural gas infrastructure in Texas. TotalEnergies originally secured the Attentive Energy lease in 2022, paying $795m. The Carolina Long Bay lease was awarded in May 2022 for $160m.

The French firm had already paused the projects after Donald Trump’s 2024 election win, saying it would consider other markets first and might revisit the US afterwards.