6 Bidders Win Feasibility Licenses For Australia's First Offshore Wind Farm

(Source: Commonwealth of Australia)
The proposed offshore wind projects in waters off Gippsland

6 developers have been granted feasibility licenses for offshore wind farm development in Australia. High Sea Wind, Gippsland Skies, Blue Mackerel North, Kut-Wut Brataualung, Ørsted Offshore Australia 1, and Star of the South Wind Farm have all been chosen to proceed after submitting applications last year.

The feasibility licenses allow developers to undertake detailed environmental assessments, geotechnical surveys, obtain approvals and undertake further consultation on their proposed projects. The announcement is set to be made during an address by federal Minister for Climate Change and Energy Chris Bowen at the Energy Users of Australia Association annual conference in Melbourne on Wednesday morning.

Additional projects asked to review proposals
The government said it also intended to grant a further six licenses to Iberdrola Australia OW 2 (Aurora Green wind farm), Greater Gippsland 2 OWP Project (Gippsland Dawn), Navigator North Project, Ørsted Offshore Australia 1 (Gippsland 02), Kent Offshore Wind, and Great Eastern Offshore Wind Farm Project Co. These additional proponents have been asked to revise and resubmit their applications to remove any overlap with other projects. Meanwhile, a decision has been made not to grant feasibility licenses to the remaining 25 applicants.

Bowen first declared the area off Gippsland as a suitable location for renewable wind energy in December 2022. Additionally, it is estimated the projects may create more than 15,000 jobs during construction and another 7,500 ongoing positions once the turbines are operational.

Victorian Minister for Energy and Resources Lily D'Ambrosio said the projects were key to meeting the state's renewable energy target of 2 GW of offshore wind energy generation by 2032. It is important to note that the developer can be only gained the final approval for building offshore wind farm after the proposed feasibility has been further proven and approved.

(Source: Ørsted)
Ørsted's far-shore project sites are located 56-100 km off the coast of Gippsland, Victoria.

Ørsted's first offshore wind project in Australia
Ørsted Offshore Australia 1 has been granted a feasibility license for the development of an offshore wind farm in Australia, located 56-100km off the coast of Gippsland, Victoria, out of sight of the coast, benefiting from favourable wind conditions and expected to be operational in the early 2030s. The next steps for the projects include site investigations, environmental assessments, and supply chain development. Ørsted stated that the company will progress the projects with a view to bid in future auctions run by the Victorian Government, supporting the state’s target of 9 GW offshore wind by 2040. The first auction is expected to start in late 2025.

Subject to the above steps and a final investment decision, the projects are expected to be completed in phases from the early 2030s, with the aim to maximize dual site synergies through shared resources and economies of scale.

Ørsted estimates the cluster has the potential to generate a combined 4.8 GW of renewable energy, which can eventually power the equivalent of four million Australian homes.

Ørsted's Gippsland offshore wind sites:
Potential capacities: 2.8 GW (license area 1) and 2 GW (license area 2)
Location : 56-100 km off the coast of Gippsland, Victoria
Water depth: average 60 m
Size of the sites: 700 km2 (license area 1) and 490 km2 (license area 2)
Expected completion: the early 2030s

Source: Commonwealth of Australia｜Ørsted｜ABC NEWS