The Australian government has offered a feasibility licence to Equinor and Oceanex’s 2GW Novocastrian floater in the Hunter declared offshore wind area in New South Wales.
Only one feasibility licence is being proposed because other applications were for overlapping areas and found to be of lower merit, said the Albanese administration.
Should the project go ahead, it would employ around 3000 workers during construction and create around 200-300 permanent local jobs. It would inject development expenditure worth hundreds of millions of dollars into the Hunter region and leverage existing heavy industry, it added.
The project could power 1.2 million homes or two Tomago smelters.
Minister for Climate Change and Energy Chris Bowen will conduct further consultation with applicants and First Nations groups before a final decision is made, aaid the government.
Consultation with First Nations groups, communities, unions and marine users will continue throughout the feasibility licence process, while environmental studies and a detailed management plan is prepared.
As well as providing reliable renewable energy to Australian industry, offshore wind projects will be required to maximise their use of Oz supply chains and closely consult with local industry and workers on their project plans to ensure local workers and businesses benefit from the establishment of this new industry.
There are also clear requirements for the offshore wind developer to consult with fishers and avoid, mitigate and offset any impacts on fishing, said the government.
The Minister also announced he expects recreational fishers will be able to travel and fish within offshore wind zone, which already occurs internationally in the United Kingdom and Denmark.
In those jurisdictions turbines are around 2km apart with an exclusion zone of just 50 metres around turbines. It means fishing vessels can go about their normal operations within the wind farm.
If feasibility for the Novocastrian floater is proven, the developers can apply for a commercial licence to build an offshore wind project.
Minister Bowen said the shortlisted project did the most to support the Hunter’s industries and communities while protecting the environment and sharing the ocean.
“The Hunter has been an industrial and economic powerhouse for generations, and my decision today is a big step towards providing that powerhouse with reliable renewables,” he said.
“The project I’ve shortlisted offers the biggest rewards for the Hunter and Australia – supporting our workforce and energy security, protecting our environment and sharing our marine space with the people and industries who rely on it today.”
Member for Newcastle Sharon Claydon said there is no other region as well placed as Newcastle to take advantage of the fantastic opportunities presented by renewable energy and the offshore wind industry.
“Newcastle’s world class infrastructure, our deepwater port, skilled workforce, abundant resources and energy smarts means our region is poised to lead this transformation,” said Claydon.
“A new offshore wind industry in Newcastle means new jobs in local manufacturing, construction, maritime, transport and logistics industries, as well growing our vocational education and training pathways – at TAFE and University.
“This announcement builds on the Albanese Labor Government’s strong commitment to ensuring that regions like Newcastle and the Hunter play a lead role in generating, storing and distributing clean energy now and into the future.”