Andrews government gives $40m to kickstart offshore wind projects

A $40m government funding boost for three major offshore wind projects could bring thousands of jobs and billions of dollars in investment to Victoria.

The Victorian government will provide $40m to kickstart three major offshore wind projects.

The funding boost, announced on Tuesday morning, will support feasibility studies and pre-construction development, including environment assessments.

The funded projects – from Star of the South, Macquarie Group and Flotation Energy – will have the potential to power around 3.6 million homes, create up to 5600 jobs and bring more than $18bn in new investment to Victoria.

They will power 40 per cent of Victoria’s total energy demand.

Daniel Andrews said wild winds off Victoria’s coastline could help the state become an offshore wind powerhouse.

The Premier said the projects would help to achieve Victoria’s target or 50 per cent renewable energy by 2030.

Daniel Andrews says wild winds off Victoria’s coastline could help the state become an offshore wind powerhouse. Picture: AFP

“This is absolutely massive,” he said.

“Offshore wind is the next step to create thousands of high skilled jobs, and we know we’re ready with a highly skilled workforce able to step into them.”

The Star of the South project will receive $19.5m to support pre-construction development activities for an offshore wind farm off the Gippsland coast.

If built to its full, proposed scale, it would have up to 2.2GW of capacity – enough power to provide nearly 20 per cent of Victoria’s energy needs.

Star of the South chief executive Caspar Frost Thorhauge said the funding was an “important step forward” for Australia’s offshore wind industry.

“Governments around the world are looking to offshore wind to power their energy systems into the future and Victoria is leading the way – attracting investment and creating jobs for workers in the regions,” Mr Frost Thorhauge said.

“This partnership will enable us to keep investing where its most needed, while ensuring benefits for government and the community through knowledge-sharing.

“Star of the South would continue Gippsland’s proud history of power generation into the future and make Victoria the home of offshore wind in Australia.”

Macquarie Group will receive $16.1m to facilitate initial development stages of a 1GW offshore wind farm off the Bass Coast.

Meanwhile, Flotation Energy will get $2.3m for scoping studies and surveys for a 1.5GW offshore wind farm off the coast of Gippsland.