Climate and energy minister Chris Bowen has announced that consultations will open soon on two new offshore wind zones in Australia, in the Bass Strait and near Perth and Bunbury in the south-west of Western Australia.
Bowen says the consultations, to begin in October for the Bass Strait and in November for Bunbury, will mean that all six proposed offshore wind zones in Australia will be “declared” by the middle of next year.
Two offshore zones – Gippsland and Hunter – have already been declared, while two others – the Illawarra and Southern – have been opened for consultation.
Victoria has set a target of 9GW of offshore wind capacity by 2040, and at least 2GW by 2032 as it seeks to replace the gap left by its ageing coal generators, and NSW and Western Australia face similar challenges in the transition to green energy.
“We aren’t just building an industry from scratch, we’re building an industry in which we want to be a world leader,” Bowen said in a speech at the Global Wind Energy Council conference in Melbourne on Wednesday.
“Now somebody said that’s an ambitious call for a nation with currently exactly zero offshore wind installations. And it is ambitious. But it’s also achievable.”
The first offshore wind turbines are unlikely to be built until 2028, and will be in Gippsland where some 37 different proposals have been submitted in a tender for licences to conduct the region’s first full feasibility studies.
The consultation for the Southern offshore wind zone hit a potential problem on Tuesday when the South Australia government said it would not support it, citing threats to its fish industry and particularly the rock lobster industry, despite research that shows potential benefits to marine industries.
Bowen, however, has not been shy of modifying the proposed offshore zones, including in NSW where the size of the zone, and of individual turbines, was limited after feedback from local communities and other stakeholders.
Flotation Energy, which is proposing a 1.5GW bottom fixed Perth Array offshore wind project in Western Australia, in conjunction with Japanese energy giant Tepco, said it welcomed the news about the consultation.
“Western Australia has extremely valuable wind ocean conditions for offshore wind generation, and these areas are in close proximity to already existing transmission infrastructure,” its head of operations in Australia Carolyn Sanders said in a statement.
“It is a zone that can be deployed quickly to replace existing coal and gas generation.”
The WA government has vowed to close all state-owned coal generators by the end of the decade, and has embarked on a major upgrade of its transmission network, and battery storage, to accomodate the first of up to 50GW or more of new wind and solar that will be required to meet expanded green energy demand.
“Western Australia is in the enviable position of having the potential to lead the development of the offshore wind supply chain in Australia through its ports and manufacturing capabilities,” Sanders said.
“An offshore wind industry in Western Australia can significantly support energy intensive industries close to the desired points of connection, including hydrogen production facilities, lithium hydroxide plants and seawater desalination plants.”
Bowen also said the government had received an overwhelmingly positive response to its proposed Hydrogen Headstart program, that aims to fund several large scale green hydrogen projects in Australia, in response to the Inflation Reduction Act in the US and European incentives.
He said that more than 114 submissions had been received, adn confirmed that funding applications will be open later this year.
“We’ve heard clearly the preference for a shorter, sharper expressions of interest process while allowing more time for full applications to firm up offtake applications and project financing,” he said.
“And I’ve also heard clearly that complex hydrogen projects will need flexibility through the assessment process and over time to manage changes such as volume production volumes.
“With the consultation program period now complete, the government is working to refine the design of the program before they intend to open funding applications later this year.”
Note: Maps of the proposed new zones in Bass Strait and W.A. will not be released until the consultations are formally opened.
