THE DEVELOPERS of a proposed offshore wind farm in the Hunter Zone have decided not to proceed with the feasibility licence offered by the Australian Government.
Novocastrian Wind Ltd, a joint venture between Norway’s Equinor and local partners Oceanex Energy and Green Door, say the decision reflects a combination of broader global challenges affecting the offshore wind industry and developers, and project-specific factors.
The project had aimed to generate 2 gigawatts of offshore renewable energy, enough to power 1.2 million homes or to meet 10% of NSW’s annual electricity needs, using floating offshore wind turbines positioned 22 to 52 kilometres off the Hunter coast.
“The proximity of this site to the existing port and grid infrastructure enables the delivery of renewable energy at scale with minimal transmission upgrades,” the partners said.
“We recognise this will be disappointing to many across the Hunter region and the broader energy sector,” the partners said in a joint statement.
“The Australian Government has taken important steps to advance the energy transition and establish a framework for offshore wind in Australia. These efforts have played an important role in progressing the offshore wind industry and projects like Novocastrian Wind.
“We’d like to acknowledge the vision and leadership of Andy Evans and Peter Sgardelis, the two founders of Oceanex Energy, who established the project in early 2020, and their partner Green Tower. Since Equinor entered the project alongside Oceanex Energy in late 2022, significant work has been undertaken, combining Oceanex’s local knowledge and expertise and Equinor’s strong project management and global experience, resulting in a proposal that led to Novocastrian Wind being the only party offered a feasibility licence in the Hunter zone.”
The partners said the Hunter was selected for its strong characteristics for an offshore wind industry, including a legacy of heavy industry and innovation, established infrastructure, regional supply chain potential, and high-quality wind resources.
“We continue to view the Hunter region as well positioned to lead Australia’s energy transition. Whilst the feasibility licence has not been accepted, Oceanex Energy remains committed to exploring options for offshore wind to support jobs, investment, energy supply and security, and prosperity for the Hunter and New South Wales.
“Equinor is committed to a low-carbon future. With over 20 years of experience in offshore wind development, we are one of the largest offshore wind developers globally. While we are not progressing with this feasibility licence, we believe Australia continues to have a significant role to play in the global energy transition, with its world class wind resources, industrial capability, and the potential to develop a competitive offshore wind sector over time.”
The decision comes amidst a blanket decision by the Trump Administration to withdraw offshore wind farm licences in US waters, including a 22 August order to Denmark’s Ørsted to immediately cease construction of its USD 4 billion Revolution Wind project off Connecticut despite it being 80% complete, with 45 of 65 turbines installed.
Analysts say Trump’s anti-wind and anti-solar posture has spooked the actual and potential financiers of renewable energy projects worldwide.