The US Department of the Interior has announced a settlement agreement with affiliates of Invenergy under which the company will voluntarily terminate four offshore wind lease areas located in the New York Bight, the Central Coast of California and the Gulf of Maine, with a combined value of $765 million.

As part of the agreement, Invenergy will redirect capital associated with these leases toward other domestic energy projects, including natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas and Missouri, as well as geothermal power generation developments in the western United States.

According to the Interior Department, the settlement is intended to support “reliable, affordable power” and strengthen energy security, while providing partial reimbursement for offshore wind leases that the administration said required significant taxpayer support.

The department stated that the agreement is aligned with efforts to lower energy costs and promote investment in what it described as more reliable and cost-effective energy sources.

Invenergy said it remains focused on delivering “reliable, affordable energy” and deploying capital into projects that can be delivered within commercially reasonable timelines and aligned with customer demand, while continuing to evaluate opportunities as market conditions evolve.