Equinor and Oceanex Energy partnership Novocastrian Wind has decided not to proceed with the feasibility licence offered by the Australian Government for the proposed 2GW Novocastrian offshore project in the Hunter offshore wind zone.
The company said the decision reflected a combination of broader global challenges affecting the offshore wind industry and developers, as well as project-specific factors.
“We recognise this will be disappointing to many across the Hunter region and the broader energy sector,” the joint statement added.
The government has taken “important steps” to advance the energy transition and establish a framework for offshore wind in Australia, Novocastrian said. These efforts had played a key role in progressing projects such as Novocastrian Wind.
The developer acknowledged the role of Andy Evans and Peter Sgardelis, founders of Oceanex Energy, who established the project in early 2020, and their partner Green Tower.
Since Equinor entered the project alongside Oceanex in late 2022, “significant work has been undertaken”, Novocastrian said, highlighting Oceanex’s local knowledge and Equinor’s project management and global experience.
That collaboration resulted in a proposal which led to Novocastrian Wind being the only party offered a feasibility licence in the Hunter zone.
The Hunter was selected for its “strong characteristics” for offshore wind, including a legacy of heavy industry and innovation, established infrastructure, regional supply chain potential and high-quality wind resources.
Novocastrian said the region remained well positioned to lead Australia’s energy transition.
While the feasibility licence will not be taken up, Oceanex said it remains committed to exploring options for offshore wind to support jobs, investment, energy supply and security, and prosperity for the Hunter and New South Wales.
Equinor added that it is committed to a low-carbon future, pointing to more than 20 years of offshore wind experience and its status as one of the largest global developers.
“While we are not progressing with this feasibility licence, we believe Australia continues to have a significant role to play in the global energy transition, with its world class wind resources, industrial capability, and the potential to develop a competitive offshore wind sector over time,” the partners said.