Bowen blow: Leading firm pulls out of Illawarra Wind Zone

A world-leading offshore wind company has decided it won’t bid on the controversial project, with Chris Bowen’s office refusing to confirm if other companies are still in the race.

A world-leading offshore wind company has officially abandoned plans to build the Illawarra Wind Zone, despite previously expressing overwhelming interest in the project.

And now the federal government is refusing to confirm if other bidders remain in contention.

Norwegian firm Equinor and its Australian partner Oceanex are no longer interested in developing the 1,000 square kilometre area stretching between Kiama and Stanwell Park.

Proposal plans have been removed from their websites and The Daily Telegraph has discovered they decided not to submit a formal application for a feasibility licence.

Equinor and Oceanex had previously claimed construction in Illawarra could start in 2028, with the turbines providing power by 2030.

An offshore wind farm. Picture: Oceanex

Last year Oceanex chairman Andy Evans said they “hoped to be lucky enough” to win the Illawarra project, which would “provide thousands of jobs over a long period of time.”

However, it’s understood they chose not to proceed after the government reduced the zone by a third and pushed it 20 kilometres offshore, following significant community and political backlash.

One person with knowledge of the situation said the smaller zone made the project “unattractive” and “too complicated” for investment and development.

“My understanding is Equinor and Oceanex have decided to put all their eggs into other wind projects - including in the Hunter - which is almost double the size” the source said.

After announcing the details of the Illawarra project in June, Minister for Climate Change and Energy Chris Bowen invited the private sector to bid for a 7-year feasibility licence. Applications closed on August 15 and there has been no public update since.

Mr Bowen’s office declined to comment on Equinor and Oceanex’s withdrawal, and also refused to reveal if other companies had submitted applications.

The project has become a political firestorm, with a strong reaction from locals, which has the potential to harm two Labor seats. More than 14,000 submissions were received during public consultation.

The office of Minister for Climate Change and Energy, Chris Bowen wouldn’t say if other companies remained in contention. Picture: NewsWire / Martin Ollman

The Coalition has already vowed to scrap the Illawarra Wind Zone if it wins the next election. Shadow Energy Minister Ted O’Brien told this masthead “Labor has irreversibly fractured trust with coastal communities as it steamrolls over them in a desperate attempt to reach its renewable energy targets.“

“Now it seems all of this pain could have been for nothing, as companies walk away from the prospect of offshore wind due to the economics of such projects” he said.

Local community group, Responsible Future added: “we have always known floating offshore wind was a difficult and costly venture for the Illawarra.”

“If major players like Equinor and Oceanex are not interested, it raises serious questions about the financial viability of this project” they said.

With continued warnings Australia is falling behind harsh renewable targets, a number of major companies have cancelled projects. Origin Energy pulled the pin on two solar farms due to “unfavourable market conditions.”

Earlier this year Shell shelved plans to invest in offshore wind in Victoria, while Ark Energy is no longer proceeding with a wind farm near Armidale due to planning issues.

Originally published as Bowen blow: Leading firm pulls out of Illawarra Wind Zone