The US government has agreed to pay German energy company RWE $1.2bn to abandon its offshore wind projects in the country.

RWE will surrender its wind leases off the coasts of California and Louisiana, as well as in the New York Bight, after determining that obtaining permits for the projects would not be feasible in the near future.

The company plans to redirect part of the investment towards conventional energy projects, including about $900m for a liquefied natural gas export terminal in Louisiana.

RWE also plans to invest about $19.6bn in the US over the next six years as it expands its power generation capacity.

US Interior Secretary Doug Burgum welcomed the agreement, saying the investment would contribute to the country’s energy security.

The deal is part of President Donald Trump’s push to scale back offshore wind development while encouraging greater investment in oil and gas.

Trump has repeatedly criticised offshore wind projects and has promoted fossil fuels as part of his energy policy.

The RWE agreement follows similar arrangements involving other energy companies.

In March, TotalEnergies agreed to end its US offshore wind projects and redirect investment towards an LNG facility in Texas and conventional oil production in the Gulf of Mexico.

Last month, Duke Energy also agreed to surrender an offshore wind lease off the Carolina coast under a $129m agreement.

The latest deal highlights the growing shift in US energy policy towards conventional fuels and away from offshore wind development.