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Equinor floating wind project in crosshairs of Australian opposition wins key approval

Norwegian oil giant is developing project with local developer Oceanex, while another offshore wind project led by Japan’s JERA Nex has also won a feasibility licence

The licence means the Novocastrian Wind project can begin assessment work needed to determine its feasibility
The licence means the Novocastrian Wind project can begin assessment work needed to determine its feasibilityPhoto: Equinor
Journalist

Equinor has won a feasibility licence for a 2GW floating wind project it is developing off New South Wales – although Australia’s opposition leader has vowed to “rip up” contracts for the zone it sits in if he wins power in the country's looming election.

The Australian government announced on Friday that it had handed a feasibility licence to the Novocastrian Wind project being developed by the Norwegian oil giant and local offshore wind developer Oceanex.

Oceanex chief Andy Evans wrote on LinkedIn that the licence represented the “first offshore wind rights for a floating foundation project in the Southern Hemisphere.”

The licence means the project, which received a preliminary approval last year, can begin assessment work needed to determine its feasibility, including seeking environmental approvals and consulting with local community and First Nations groups.

The project sits in the Hunter offshore wind zone off the coast of New South Wales, near the city of Newcastle north of Sydney. It could power more than a million homes, says the government.

The Hunter area is however one of several offshore wind zones declared by the Labor government led by Prime Minister Anthony Albanese that is under threat as Australia closes in on an election that must take place by May.

Opposition leader Peter Dutton, whose right wing Liberal Party heads the opposition Coalition, vowed in December to “rip up” contracts for the zone and several other offshore wind areas declared by the Albanese administration.

Another zone that Dutton has vowed to cancel is he wins power is the Southern Ocean offshore wind zone off the coast of Victoria.

On the same day it awarded the licence to Novocastrian Wind, the government also announced awarding a feasibility licence to Spinifex Offshore, a 1.2GW project being developed in that zone by Japan’s JERA Nex and Hong Kong-owned Alinta Energy.

Recharge has reported on how the prospect of a Dutton government has cast a shadow on Australia’s burgeoning offshore wind sector. Oceanex chief Evans recently described the opposition leader’s plan to ditch the Albanese government’s focus on renewables in favour of building a fleet of nuclear power stations as “farcical”.
Former Australian Prime Minister Malcolm Turnbull recently told Recharge Dutton’s plan is akin to Soviet-style state planning that “made no economic sense”.
In a sign of the chilling effect Dutton’s threats are having on developers, Spain’s BlueFloat Energy recently asked the government to pause assessment of an offshore wind project until after the upcoming election.
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Published 3 March 2025, 10:31Updated 3 March 2025, 10:31
AustraliaEquinorNorwayAsia-PacificOceanex Energy