Offshore wind: Consultation opens on fourth development zone off Illawarra coast

The federal government has opened consultation on Australia’s fourth offshore wind energy development zone, and the second for New South Wales, proposing an area of more than 1,400 square kilometres off the coast of the state’s Illawarra region.

The zone being proposed extends from off the coast of Wombarra, a northern suburb of Wollongong, south to waters off Gerringong, and would be located between 10km to 30km out to sea.

Federal energy minister Chris Bowen says the Illawarra has been earmarked for its strong offshore wind resource, major port infrastructure and role as an industrial and manufacturing hub.

Bowen says the draft development zone could host up to 4.2GW of offshore wind capacity to help transition the region – which hosts Australia’s largest crude steel production plant at Port Kembla – from coal to renewables.

“Offshore wind is energy rich and jobs rich but despite having some of the best wind resources in the world, Australia doesn’t currently have any offshore wind,” the minister said on Monday.

“This presents a huge economic opportunity for the regions that help power Australia – like the Illawarra, to continue to power our nation for generations to come.”

Bowen says the “comprehensive consultation period” for the proposed new development zone will remain open until October 16 and will include six community information sessions across the Illawarra.

“This is a genuine consultation and I encourage all community members to get involved and have their say on the proposed zone,” he said.

“Communities often have questions about amenity, environmental impacts, shipping and fishing. The community consultation process is an opportunity for those questions to be raised so that the government has the chance to address them in a final decision.”

Off and racing

The launch of consultation on a fourth wind energy development zone for Australia comes as the nation’s second declared offshore wind development zone – off the coast of the NSW Hunter region – opens to expressions of interest to proposed projects.

The Hunter zone was formally declared just last month, as a nearly 2,000km square area in the Pacific Ocean, which stretches between Swansea and Port Stephens, and will be the first in Australia to host floating turbines.

Australia’s first official offshore wind development zone was formally declared in the Bass Strait off the coast of Gippsland in Victoria in December 2022.

A second development area proposed for off the coast of Victoria, the Southern Ocean zone, was opened for consultation in June.

The area proposed for the Southern Ocean zone stretches across 5,100 square kilometres from Warrnambool in Victoria to Port MacDonnell in South Australia, and has the potential to host up to 14GW of offshore wind capacity.

All up the Albanese government has earmarked six zones around Australia for offshore wind development, including the Bass Strait region off northern Tasmania and the Indian Ocean region off Perth/Bunbury.

See RenewEconomy’s Offshore Wind Farm Map of Australia

“Unalloyed good news”

In a speech to the Illawarra Clean Energy Summit on Monday, minister Bowen described the launch of consultation on the latest offshore wind zone as “unalloyed good news” for the region.

“It means jobs, jobs, jobs.

“It means there is a new source of affordable and clean power for Illawarra industries.”

It’s also good news for renewable energy developers. Already there a three offshore wind farms proposed for development in the new zone, including the 2GW Illawarra project from Oceanex and Equinor, and the 1.6GW Southern Pacific Offshore wind project from BlueFloat Energy.

But there will doubtless be more. A test of interest in the Illawarra renewable energy zone by the former Labor NSW government nearly a year ago received a huge response, including eight offshore wind projects.

A “powerful” policy signal

“The designation of another offshore wind zone in Australia within six months is a powerful demonstration of Australia’s ambitions in offshore wind and showcases the scale of ambitions needed to build an industry,” said Equinor’s senior director for offshore wind in Australia, Thomas Hansen.

“We need offshore wind projects in NSW and other jurisdictions to capitalise on the opportunities that come with the development of a new, large-scale industry and accomplish a rapid transition to net zero emissions,” added Oceanex CEO Andy Evans.

“We’re hoping to be able to leverage our strong relationships with local Illawarra businesses to deliver a significant portion of the Illawarra Offshore Wind Farm,” Evans said.

For more information on the Illawarra offshore electricity area public consultation, visit https://consult.dcceew.gov.au/oei-illawarra