The federal government has named the potential licence winners in Bunbury offshore wind zone in Western Australia, and given the backers of the only Hunter zone project in NSW another 90 days to make a decision.
Federal energy minister Chris Bowen awarded a feasibility licence to the 1.5 gigawatt (GW) Bunbury Offshore Wind Farm Pty Ltd in the northern section of the Western Australian zone, and a preliminary licence for the southern section.
That licence overlaps with a preliminary feasibility licence given to another project named Westward Wind Pty Ltd, meaning the two must now start negotiations to resolve the issue.
A feasibility licence gives the developer the opportunity to investigate their proposed offshore wind project before they can apply for a commercial licence to begin construction. It is the first step in a multi-year process which requires ongoing community consultation and engagement.
Western Australia is “key” to the federal government’s offshore wind plans, said Bowen in a statement.
“In Bunbury, offshore wind has huge potential for jobs, new industry, and clean, reliable renewable energy in the regions which have powered Australia for generations,” he said.
“Western Australia needs some 50 GW of additional generation by 2042, and we’re getting to work making sure that we deliver the new clean energy, and the good jobs, the west needs.”
90 days extension for Hunter
Bowen gave Oceanex and its Norwegian partner Equinor another 90 days to make a decision on accepting a feasibility licence for the Hunter zone in New South Wales (NSW).
The companies are the sole applicant and winner of a feasibility licence for their 2GW Novocastrian Wind project, which was awarded in February.
But the duo have asked for more time to develop their commercial arrangements, after still assessing plans as late as early May.
The federal government is not opening the Hunter zone, an area 500km square and a minimum 22km off the coast, to other projects or applicants.
The Hunter zone was the first to be declared in NSW and, if the Novocastrian project goes ahead, will be the first to host a floating offshore wind farm because of the depth of its waters.
The Hunter zone has been one of the more challenging and contentious zones to be declared.
The government received almost 2000 submissions in 2023 during the public consultation on the zone, and Peter Dutton promised to rescind and “rip up” the $10 billion plans proposed for development there were he elected.
Equinor is a major global offshore wind developer – it is the proponent behind the on-again, off-again Empire Wind project off the coast of New York that US President Donald Trump cancelled then reinstated in May.
But the company has been pulling back from offshore wind, cutting its renewable energy division by about 20 per cent and in February halving investment in renewables from $US10 billion to $US5 billion while investing more heavily in offshore oil.
Final no
Bowen also made a final call not to offer a feasibility licence to the Seadragon proposal for the Gippsland zone.
The Flotation Energy project was one of the surprise losers last year in the Gippsland zone after its proposed area overlapped with another project and was seen to be the less valuable of the two.
Flotation won a reprieve last year when the Federal Court sent its proposal back to Bowen for a second look.