Offshore Windfarm Developer Seeks Election Delay for Illawarra Project Application

• Feb 28, 2025

Labor Accuses Coalition of ‘Sovereign Risk’ Over Offshore Wind Opposition as Nationals Celebrate Victory

An offshore windfarm developer has requested the Albanese government to postpone its application for a feasibility licence for an Illawarra offshore wind project until after the upcoming federal election, following opposition from the Coalition.

BlueFloat Energy was the sole applicant for a seven-year feasibility licence to advance its project in the deep waters of the Illawarra offshore wind zone. While the company did not specify its reasons for the delay request, the Illawarra zone is one of at least two of the six declared offshore wind zones that the Coalition has pledged to cancel if elected. The Southern Ocean offshore zone is another target of the Coalition’s opposition, despite the government’s recent announcement that the Spinifex offshore windfarm had been granted a feasibility licence in the area.

In addition, the Novocastrian Offshore Wind Farm in the Hunter zone was among those granted feasibility licences, which require companies to draft management plans, secure environmental approvals, and engage with local communities, industry stakeholders, and authorities.

Following BlueFloat’s decision, Nationals leader David Littleproud hailed it as a significant victory. “The Nationals were the first political party to commit to blocking this project last year, prioritizing the protection of the natural environment,” he said.

Meanwhile, BlueFloat’s Gippsland Dawn offshore wind project was awarded a feasibility licence in June 2024.

Energy Minister Chris Bowen criticized the Coalition’s stance, accusing opposition leader Peter Dutton of creating “sovereign risk” by opposing offshore wind projects. Bowen warned that the Coalition’s pledge to cancel the Illawarra offshore wind zone would undermine energy security in the region and create operational challenges for major energy consumers.

Ria Voorhaar, a spokesperson for the Illawarra-based pro-offshore wind group Good for the Gong, condemned the political uncertainty surrounding the energy transition. “The majority of Illawarra residents support climate action and this offshore wind project. However, Dutton’s divisive tactics are making investment in renewables more difficult,” she said.

Michael Wright, national secretary of the Electrical Trades Union, expressed concern over the impact on jobs, stating that the delay in the Illawarra project jeopardized 2,500 direct jobs. “The facts are clear: to maintain energy security, we need projects like this that provide stable, well-paying union jobs. Dutton’s fearmongering is now costing jobs in the Illawarra,” he said.

Despite setbacks in Illawarra, renewable energy campaigners in Gippsland welcomed positive developments. The country’s most advanced offshore wind project, Star of the South, announced discussions with BlueScope Steel regarding the potential use of its steel for boat landings and turbine foundation platforms.

Wendy Farmer, from Friends of the Earth in Gippsland, emphasized the economic benefits of renewables for regional manufacturing. “This demonstrates that investing in renewables strengthens local manufacturing jobs and secures a brighter future for young Australians,” she said.