The Federal Government is backing the offshore wind sector, offering feasibility licences to projects in Victoria and New South Wales as the next step in building an Australian industry.
In New South Wales, Novocastrian Wind Pty Ltd – a partnership between Equinor and Oceanex Energy – has been offered a feasibility licence to explore its planned offshore wind farm project for the Hunter offshore wind area.
The move finalises the Federal Government’s previous preliminary decision to grant a licence to Novocastrian Wind, but not to any other applicants in the Hunter zone.
The project is located a minimum 22km off the coast of the Hunter and has the potential to deliver 2GW of renewable electricity – enough to power more than a million homes.
In Victoria, the Federal Government made a final decision to offer Spinifex Offshore a feasibility licence for its planned wind farm in the Southern Ocean zone, following a preliminary offer in September 2024.
Spinifex’s planned wind farm will cover just 265km2 of the 1,030km2 Southern Ocean wind zone, yet could generate 1.2GW of reliable renewable energy, enough power to provide ten per cent of Victoria’s electricity needs.
Combined, the projects in the Hunter and Southern Ocean offshore wind zones have the potential to generate 3.2GW of clean, reliable energy – enough to meet the demands of over two million homes, or over half of Victoria and New South Wales’s industrial energy demand.
The feasibility licences are issued for seven years, while proponents consult further with communities and undertake environmental assessments and approval processes before seeking commercial licences to build their offshore wind projects.
During the feasibility stage, the proposed projects must undertake environmental assessments and seek approvals under the Environment Protection and Biodiversity Conservation Act 1999, to ensure matters of national environmental significance are protected.
Both Novocastrian and Spinifex must consult further with the community and undertake environmental assessments as part of the feasibility studies supporting their offshore wind project now that the licences have been awarded. In addition, they are required by law to consult with the fishing industry and avoid, mitigate and offset any impacts on fishing.
Wind Industry Committees have been established for both regions – each comprising the relevant license holder, state and local governments, First Nations groups, local industry and workers’ representatives who will work together to maximise economic and social benefits.
Federal Minister for Climate Change and Energy, Chris Bowen, also approved new guidelines for offshore transmission and infrastructure licences.
The Federal Government said both projects have the potential to create hundreds of well-paid, ongoing jobs for workers in their respective regions, including engineers, technicians and divers, as well as new opportunities for suppliers and surrounding industry.
Gippsland offshore wind zone
The Federal Government also announced that Australia’s most advanced offshore wind project, Star of the South, is partnering with BlueScope to investigate the potential for steel plate made in the Illawarra to be used in boat landings and platforms for the turbine foundations.
Gippsland licence holder Blue Mackerel North Pty Ltd will also take the next steps to assess the commercial viability of its project after being awarded the first management plan.
Minister Bowen also announced that he has made a preliminary decision not to offer a licence to Seadragon in the Gippsland zone.
In the Illawarra zone, while one application has been received, the Federal Government has paused consideration of the feasibility licence at the applicant’s request until after the federal election.
