The future of offshore wind in the Hunter has been dealt a setback after Equinor confirmed it will not proceed with the Novocastrian Offshore Wind project, leaving joint venture partner Oceanex Energy unable to continue without a major backer.
Novocastrian Wind Pty Ltd, made up of Oceanex Energy and Equinor, had been the only group offered a feasibility licence in the Hunter offshore wind zone. The consortium has now declined that offer, citing global investment challenges and the complexity of the project.
In a joint statement, Novocastrian Wind said its decision reflected “a combination of broader global challenges affecting the offshore wind industry and developers, and project-specific factors.”
Business Hunter Acting CEO Amy De Lore said the outcome was not unexpected but still disappointing.
“The withdrawal of Equinor, while not unexpected, is disappointing for the region and demonstrates yet again that the path to energy transition is not straightforward and will take time,” she said.
Ms De Lore noted the Hunter zone remains declared, with the Federal Government now shifting its focus to research and development opportunities. She said the change reinforced the need to keep energy affordable while the transition plays out.
“Energy cost is one of the biggest economic pressures facing business and households, and we need to ensure all resources are used while the path to Net Zero continues to evolve.”
Climate and Energy Minister Chris Bowen told ABC Newcastle that Equinor’s decision was linked to its global retreat from renewable projects, not just the Hunter.
“They’ve withdrawn from projects in Vietnam, Portugal and Spain. They’ve cut their renewables budget from 10 billion to 5 billion and we’re caught up in that, so that’s disappointing,” he told ABC Newcastle.
Mr Bowen said Oceanex Energy was still committed but did not have the resources to deliver such a large-scale project without an international partner. “They’re too small. They’re a great company, but they are too small to undertake such a big project alone. They don’t have the access to the capital,” he said.
Instead, the Hunter offshore wind zone will now be used for research and development licences to maintain momentum and prepare for future projects. Mr Bowen said offshore wind in Australia remains a long-term prospect. “This was always about the 2030s and I think that remains the case. Maybe a bit later in the 2030s than we originally envisaged, but this is a long term project.”
Novocastrian Wind acknowledged community disappointment and paid tribute to Oceanex founders Andy Evans and Peter Sgardelis, as well as partner Green Tower, for their role in building the project since 2020. It also stressed that the Hunter remains a strong candidate for offshore wind in the future due to its industrial base, infrastructure and wind resources.
Oceanex Energy confirmed it will continue exploring opportunities to develop offshore wind in NSW, while Equinor said it remains committed to a low-carbon future but is scaling back its renewable investment portfolio internationally.
