‘Incorrect’: Bowen returns serve on Illawarra wind claim

The Energy Minister insists there are still companies bidding for the controversial Illawarra Offshore Wind Zone, despite a leading global firm backing away from the project

Chris Bowen has refuted “incorrect” claims a controversial wind project in the Illawarra is on life support, insisting he remains in ongoing negotiations with a prospective bidder.

Responding to the story in today’s Daily Telegraph, which revealed another leading energy company was backing away from the Illawarra, the Energy Minister revealed he was “in the middle of the decision-making process”.

“I’ve declared six (wind) zones. They are all at various stages and varying degrees of interest,” Mr Bowen said.

“Gippsland had more than 30 applicants and I’ve awarded 12 licenses. Different zones are at different levels of interest … but all have received interest. The Illawarra I’ve declared and has received interest,” he said.

It comes after this masthead revealed the top bidder for the Illawarra, BlueFloat Energy, had curiously removed several references to the Illawarra from its website.

The firm had publicly backed the project since December 2021, claiming the region “has a strong and consistent wind resource” and there were “significant opportunities … to maximise local employment”.

Renewable Energy giant BlueFloat has quietly removed plans for the Illawarra Wind Zone from their website ., Picture: supplied

However, it’s understood BlueFloat recently decided to focus on Victoria after winning a separate wind contract from Mr Bowen in Gippsland.

An industry source with knowledge of the situation said political concerns had slowed decision-making in the Illawarra and there was a growing belief further progress, including the awarding of licenses, may be delayed until after the election.

Applications for companies to apply for a feasibility licence on the Illawarra project ran between June to August 2024. No update has been provided to the public since.

BlueFloat Energy declined to comment.

In October, Norwegian firm Equinor and its local partner Oceanex pulled their Illawarra Wind Zone bid, with insiders claiming the smaller declared area was "financially unattractive" and "too complicated" for operators.

A separate report in Nine newspapers recently determined BlueFloat were the only company who were likely to still be in the running for the Illawarra.

When approached for comment on Monday, Mr Bowen’s office said “the assertion that there is no interest in the Illawarra offshore wind zone is factually inaccurate”

“We are not rushing this process because we want to get it right – for the community and for the industry,” Mr Bowen’s office said.

The Illawarra Offshore Wind Zone has been the subject of immense community feedback, with over 14,200 submissions during public consultation. The backlash from residents, business operators and marine experts forced Minister Bowen’s department to reduce the size of the wind zone and move it further offshore.

An example of an Offshore Wind Farm – in this case constructed by Danish wind giant Orsted. (Photo by Thomas Traasdahl / Ritzau Scanpix / AFP) / Denmark OUT

However, the project, which covers 1000 square kilometres and boasts turbines 268 metres high, has some Labor insiders privately fearing it could impact several seats.

Of most concern is the seat of Gilmore, which Labor MP Fiona Phillips holds by a handful of votes. Prominent Liberal candidate Andrew Constance, the former state Transport Minister, will again attempt to win Gilmore.

In response to BlueFloat cooling on the Illawarra, Mr Constance said: “Chris Bowen needs to concede defeat”.

“This is a proposal that has sunk to the bottom of the ocean with massive political ramifications for the Albanese government. It was always a white elephant and polarised the community without reason,” Mr Constance said.

Andrew Constance – the Liberal Party’s candidate for Gilmore – called for Chris Bowen to “concede defeat” with the Illawarra Offshore Wind Zone. Picture: Dylan Arvela

Mr Bowen’s declared wind zones in both the Illawarra and Hunter are set to be a factor with regional voters at the polls.

The Coalition has vowed to scrap both projects should they win back government.

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Originally published as ‘Incorrect’: Bowen returns serve on Illawarra wind claim