Equinor and Oceanex get boost for giant floating wind plan as Australia opens latest zone

Australia has made the Illawarra area in the Pacific Ocean off New South Wales (NSW) its latest offshore wind zone but amended it to be a third smaller than originally planned and further away from the coast for environmental reasons.

“The Illawarra has been an engine room of the Australian economy for generations, and now it’s ready to power Australia’s clean energy future,” climate change and energy minister Chris Bowen said.

“Declaring this offshore wind zone brings the Illawarra a step closer to becoming a major provider of the building blocks of the net zero transformation – green power, green hydrogen and green steel – along with thousands of new jobs.”

As well as being home to Australia’s largest city Sydney, NSW is seen as ideal for large-scale wind power development thanks to its strong industrial power demand and an economy transitioning away from coal, oil and gas.

Next to providing new energy into the region to replace forecast power station closures, the Illawarra project also speeds up the potential for other new industries planned for the region including hydrogen production and the electrification of transport, Oceanex said on its website.

Australia’s government after consultations with local leaders, industry, unions, First Nations people, community groups and individuals has amended the Illawarra zone to now be 20 kilometres from the coast and trimmed down its area to 1,022 square kilometres, from 1,461 sq km originally planned.

It therefore now excludes significant environmental areas including the Biologically Important Area for the Little Penguin, the Shelf Rocky Reef Key Ecological Feature and the Southern Right Whale migration and reproduction area.

“Amending the zone so that it commences 20 kilometres from the coast and excluding significant environmental areas is a sensible compromise that reflects the majority of community opinion while helping to achieve our shared goals of more renewable energy, more jobs and fewer emissions,” said Alison Byrnes, an Australian Labor Party lawmaker for Cunningham.

She added that an extensive process of studies and approvals will be kicked off now, at which not only environmental standards but also local content and the use of locally produced steel will be examined.

Feasibility licence applications for offshore wind projects in the Illawarra zone have opened today (Monday) and close on 15 August 2024.

Construction can only begin after the feasibility stage is completed and developers have gained subsequent environmental and management plan approvals, as well as demonstrating how projects will benefit Australian industry and jobs.