Proponents walk away from offshore wind project

PROJECT proponents Equinor and Oceanex Energy have made the decision not to proceed with the Novocastrian Offshore Wind Farm.

The project partners had, in February 2024, been offered a licence to explore the feasibility of a two gigawatt offshore wind farm off the coast of the Hunter, however this has now been turned down.

Minister for Climate Change and Energy Chris Bowen declared an area off the Hunter coast as suitable for offshore renewable energy, including offshore wind, in July 2023.

Novocastrian Wind was the only project offered a feasibility licence in the Hunter zone.

“The decision (to turn down the licence) reflects a combination of broader global challenges affecting the offshore wind industry and developers, and project-specific factors,” Novocastrian Wind said in a statement.

“We recognise this will be disappointing to many across the Hunter region and the broader energy sector.”

Oceanex Energy co-founder Andy Evans expressed disappointment in the decision.

“The [feasibility] licence was the first offshore wind rights offered in the Southern Hemisphere for floating foundation technology and would have stamped NSW and Australia at the forefront in the deployment of deep-water offshore wind energy,” he said.

“Oceanex has always supported, and continues to support, the development of offshore wind off the Hunter coast and NSW, and we look forward to exploring any future possibility in progressing this goal.

“Whilst this is obviously a setback, we will be exploring all options to make offshore wind a reality in the Hunter.

“Since starting the Novocastrian Offshore Wind Farm in early 2020, we have received nothing but support from all in the region.”

The decision comes after years of local campaigning against the project, with fears of impacts to the marine ecosystem and the fishing sector among the key concerns raised.

Federal Member for Lyne Alison Penfold welcomed the decision and called for the Federal Government to completely rescind the offshore wind zone.

“Equinor walking away from this project is a huge win for the region – a community that saw from the very beginning that the Hunter coast was never the right place for an industrial offshore wind farm,” Ms Penfold said.

“This project would have had devastating impacts both offshore and onshore, including through a Ramsar wetland.”

Among the leaders of the campaign to halt the project was Newcastle Port Stephens Game Fish Club president Troy Radford, who said locals will “continue to fight to protect our waters” until the zone is rescinded.

“If the Government is serious about listening to the community, they must act now to cancel this zone.”

“Our ocean is not an industrial site – it’s a living environment, a fishing ground, and the heart of a thriving coastal economy.”

Hunter-based Nationals Senator Ross Cadell said Labor’s ongoing pursuit of offshore wind in the Hunter shows the party is “out of touch” with communities and the energy industry.

“For more than two-years, Chris Bowen has treated the people of Port Stephens and the Illawarra with complete contempt,” Cadell said.

“He has continued to scream from the mountains about an energy plan that even he, deep in his own heart, knew wouldn’t work.

“Despite that, he has tortured everyday Australians with his floating renewable fantasy.”

A Liberal candidate in the recent Federal Election, Laurence Antcliff campaigned heavily on the issue of offshore wind.

He said the decision to walk away from the project validated the concerns of locals.

“Our community stood together because we were frustrated,” he said.

“Frustrated that Meryl Swanson, Chris Bowen and Anthony Albanese tried to ram this project through without genuine consultation.

“They ignored locals, dismissed concerns, and treated our pristine coastline as a political experiment. Labor tried to divide our community.

“They branded decent, ordinary Australians as ‘cookers’ simply because they dared to ask questions.

“This is a win for those who were told they were wrong, belittled, and mocked simply for speaking up.”

While it is unlikely the Hunter will be home to an offshore wind farm anytime soon, the government’s hopes for utilisation of the declared zone continue.

On Friday, Energy Minister Chris Bowen released new guidelines to support developers, researchers, scientists and other interested parties apply for Research and Demonstration licences in declared offshore zones.

Mr Bowen said the Hunter offshore wind zone remains ripe for investment given the local workforce, experience with heavy industry, and large energy use.

Projects might include using monitoring equipment such as special buoys to assess the feasibility of a region, or demonstration projects to investigate viability of new technology before applying for a feasibility licence to progress to a full commercial project.

Research and Demonstration licences are proposed to last for 10 years and will be available across all six declared areas.

Applications will be assessed for their appropriateness and projects will require community consultation.

“These Research and Demonstration licences are a big green light to domestic and international investors, signalling that Australia wants to be home to the next technological advance when it comes to offshore renewable development,” he said.

“Our first priority for Australia’s offshore renewables areas is to deliver cleaner and cheaper energy.

“We know there’s a huge reserve of renewable resources on offer if we can develop the technology to harness it.

“Australian waters are the perfect place to research and develop these technologies, demonstrate their viability and work towards turning our clean energy potential into gigawatts of power.”

The Government is seeking feedback to improve and finalise its Research and Demonstration licence application guidelines, with public consultation open 22 August to 3 October 2025.