4 days ago
Offshore wind partners given more time to consider involvement in Hunter project
Novocastrian Wind Pty Ltd has been given more time to weigh up its involvement in the Hunter's offshore wind project due to uncertainty that is rocking the global industry.
Project partners, Australian company Oceanex and Norwegian energy giant Equinor, were offered a feasibility licence for their two GW project in late February.
The government initially gave the partners 90 days to consider the offer, given that the offer was made just prior to the federal election campaign.
The timeframe expired last week. The government has since agreed to allow another 90 days for the partners to develop their commercial arrangements, given the challenges facing the industry.
While Oceanex is keen to move ahead, Equinor's recent public statements have raised questions about its commitment to the project.
If they are unable to resolve their issues, the government could be forced to call for fresh licence applications for the zone, which it declared in 2023.
Oceanex founder and chief executive Andy Evans told the Newcastle Herald that the company remained committed to making the Novocastrian Wind project a reality.
"We love the region and the people, and we know it's the perfect place to start a floating offshore wind industry in Australia," he said.
In previous statements, Equinor has said that it was assessing the government's offer as part of the prescribed legislative framework.
On Tuesday, a spokeswoman said the company continued to believe Newcastle had strong characteristics for an offshore wind industry, including a legacy of heavy industry and innovation, supply chain capabilities, infrastructure and wind resources offshore.
"We will continue to assess the feasibility licence, and if accepted, the initial focus will be on community and stakeholder engagement, supply chain development, as well as environmental studies and baseline surveys," the spokeswoman said.
"This phase is expected to take up to seven years, and consultation with stakeholders is a key component of environmental approvals under legislative and regulatory requirements."
The Herald understands Equinor will also have to make significant milestone payments to its commercial partner if it signs off on the licence.
Equinor, formerly known as Statoil, changed its name in 2018 as part of a rebrand away from oil and gas to broader energy generation.
Throughout 2024, it announced a retreat from offshore wind, closing its office in Vietnam and cancelling all offshore wind projects in Portugal and Spain.
It also reduced the number of employees in its renewable energy division by 20 per cent, roughly a cut of 250 jobs globally.
In February 2025, as part of its Q4 and 2024 annual results, Equinor announced it would halve its renewables investment from US$ 10 billion to US$5 billion. It has also lowered its capacity for renewables from 12 - 16 GW to between 10 -12 GW.
The company recently recommenced construction of its 810-megawatt Empire Wind 1 project off downstate New York after the Trump administration claimed there were "serious issues with respect to the project approvals".
Aside from offshore wind, the company has been lifting its investments in offshore oil, including plans to invest US$6.7 billion each year through to 2035 in Norway's offshore oil sector.
Overall, it is increasing oil and gas production, aiming for a 10 per cent growth from 2024 to 2027.
In April 2025, institutional investors, including a Danish and Swedish pension fund, as well as Australia's Centre for Corporate Responsibility, expressed their concerns at the incompatibility of the plans with Equinor's stated commitment to net zero.
Despite a high-profile campaign against the Hunter Offshore Wind Project in the lead-up to last month's federal election, Labor increased its majority in the seat of Paterson.
Minister for Climate Change and Energy Chris Bowen said on Tuesday that the offshore wind had huge economic and employment potential for the Hunter and Australia.
"When you're starting a new industry, you'll always have challenges to overcome, but the future remains potentially very strong for offshore wind and all the jobs that it involves," he said.
Mr Bowen was in Western Australia's Bunbury offshore wind zone on Tuesday to offer a feasibility licence to Bunbury Offshore Wind Farm Pty Ltd to operate in the northern part of the zone.
The project has the potential to deliver 1.5 gigawatts of reliable renewable electricity, enough to power about one million homes, and could employ 900 workers during construction with 450 ongoing jobs.
The Minister has shortlisted two projects: one from Westward Wind Pty Ltd and an additional project from Bunbury Offshore Wind Pty Ltd for a preliminary feasibility licence in the southern area of the zone. The two applicants will now seek to resolve the overlap between them.
Novocastrian Wind Pty Ltd has been given more time to weigh up its involvement in the Hunter's offshore wind project due to uncertainty that is rocking the global industry.
Project partners, Australian company Oceanex and Norwegian energy giant Equinor, were offered a feasibility licence for their two GW project in late February.
The government initially gave the partners 90 days to consider the offer, given that the offer was made just prior to the federal election campaign.
The timeframe expired last week. The government has since agreed to allow another 90 days for the partners to develop their commercial arrangements, given the challenges facing the industry.
While Oceanex is keen to move ahead, Equinor's recent public statements have raised questions about its commitment to the project.
If they are unable to resolve their issues, the government could be forced to call for fresh licence applications for the zone, which it declared in 2023.
Oceanex founder and chief executive Andy Evans told the Newcastle Herald that the company remained committed to making the Novocastrian Wind project a reality.
"We love the region and the people, and we know it's the perfect place to start a floating offshore wind industry in Australia," he said.
In previous statements, Equinor has said that it was assessing the government's offer as part of the prescribed legislative framework.
On Tuesday, a spokeswoman said the company continued to believe Newcastle had strong characteristics for an offshore wind industry, including a legacy of heavy industry and innovation, supply chain capabilities, infrastructure and wind resources offshore.
"We will continue to assess the feasibility licence, and if accepted, the initial focus will be on community and stakeholder engagement, supply chain development, as well as environmental studies and baseline surveys," the spokeswoman said.
"This phase is expected to take up to seven years, and consultation with stakeholders is a key component of environmental approvals under legislative and regulatory requirements."
The Herald understands Equinor will also have to make significant milestone payments to its commercial partner if it signs off on the licence.
Equinor, formerly known as Statoil, changed its name in 2018 as part of a rebrand away from oil and gas to broader energy generation.
Throughout 2024, it announced a retreat from offshore wind, closing its office in Vietnam and cancelling all offshore wind projects in Portugal and Spain.
It also reduced the number of employees in its renewable energy division by 20 per cent, roughly a cut of 250 jobs globally.
In February 2025, as part of its Q4 and 2024 annual results, Equinor announced it would halve its renewables investment from US$ 10 billion to US$5 billion. It has also lowered its capacity for renewables from 12 - 16 GW to between 10 -12 GW.
The company recently recommenced construction of its 810-megawatt Empire Wind 1 project off downstate New York after the Trump administration claimed there were "serious issues with respect to the project approvals".
Aside from offshore wind, the company has been lifting its investments in offshore oil, including plans to invest US$6.7 billion each year through to 2035 in Norway's offshore oil sector.
Overall, it is increasing oil and gas production, aiming for a 10 per cent growth from 2024 to 2027.
In April 2025, institutional investors, including a Danish and Swedish pension fund, as well as Australia's Centre for Corporate Responsibility, expressed their concerns at the incompatibility of the plans with Equinor's stated commitment to net zero.
Despite a high-profile campaign against the Hunter Offshore Wind Project in the lead-up to last month's federal election, Labor increased its majority in the seat of Paterson.
Minister for Climate Change and Energy Chris Bowen said on Tuesday that the offshore wind had huge economic and employment potential for the Hunter and Australia.
"When you're starting a new industry, you'll always have challenges to overcome, but the future remains potentially very strong for offshore wind and all the jobs that it involves," he said.
Mr Bowen was in Western Australia's Bunbury offshore wind zone on Tuesday to offer a feasibility licence to Bunbury Offshore Wind Farm Pty Ltd to operate in the northern part of the zone.
The project has the potential to deliver 1.5 gigawatts of reliable renewable electricity, enough to power about one million homes, and could employ 900 workers during construction with 450 ongoing jobs.
The Minister has shortlisted two projects: one from Westward Wind Pty Ltd and an additional project from Bunbury Offshore Wind Pty Ltd for a preliminary feasibility licence in the southern area of the zone. The two applicants will now seek to resolve the overlap between them.
Novocastrian Wind Pty Ltd has been given more time to weigh up its involvement in the Hunter's offshore wind project due to uncertainty that is rocking the global industry.
Project partners, Australian company Oceanex and Norwegian energy giant Equinor, were offered a feasibility licence for their two GW project in late February.
The government initially gave the partners 90 days to consider the offer, given that the offer was made just prior to the federal election campaign.
The timeframe expired last week. The government has since agreed to allow another 90 days for the partners to develop their commercial arrangements, given the challenges facing the industry.
While Oceanex is keen to move ahead, Equinor's recent public statements have raised questions about its commitment to the project.
If they are unable to resolve their issues, the government could be forced to call for fresh licence applications for the zone, which it declared in 2023.
Oceanex founder and chief executive Andy Evans told the Newcastle Herald that the company remained committed to making the Novocastrian Wind project a reality.
"We love the region and the people, and we know it's the perfect place to start a floating offshore wind industry in Australia," he said.
In previous statements, Equinor has said that it was assessing the government's offer as part of the prescribed legislative framework.
On Tuesday, a spokeswoman said the company continued to believe Newcastle had strong characteristics for an offshore wind industry, including a legacy of heavy industry and innovation, supply chain capabilities, infrastructure and wind resources offshore.
"We will continue to assess the feasibility licence, and if accepted, the initial focus will be on community and stakeholder engagement, supply chain development, as well as environmental studies and baseline surveys," the spokeswoman said.
"This phase is expected to take up to seven years, and consultation with stakeholders is a key component of environmental approvals under legislative and regulatory requirements."
The Herald understands Equinor will also have to make significant milestone payments to its commercial partner if it signs off on the licence.
Equinor, formerly known as Statoil, changed its name in 2018 as part of a rebrand away from oil and gas to broader energy generation.
Throughout 2024, it announced a retreat from offshore wind, closing its office in Vietnam and cancelling all offshore wind projects in Portugal and Spain.
It also reduced the number of employees in its renewable energy division by 20 per cent, roughly a cut of 250 jobs globally.
In February 2025, as part of its Q4 and 2024 annual results, Equinor announced it would halve its renewables investment from US$ 10 billion to US$5 billion. It has also lowered its capacity for renewables from 12 - 16 GW to between 10 -12 GW.
The company recently recommenced construction of its 810-megawatt Empire Wind 1 project off downstate New York after the Trump administration claimed there were "serious issues with respect to the project approvals".
Aside from offshore wind, the company has been lifting its investments in offshore oil, including plans to invest US$6.7 billion each year through to 2035 in Norway's offshore oil sector.
Overall, it is increasing oil and gas production, aiming for a 10 per cent growth from 2024 to 2027.
In April 2025, institutional investors, including a Danish and Swedish pension fund, as well as Australia's Centre for Corporate Responsibility, expressed their concerns at the incompatibility of the plans with Equinor's stated commitment to net zero.
Despite a high-profile campaign against the Hunter Offshore Wind Project in the lead-up to last month's federal election, Labor increased its majority in the seat of Paterson.
Minister for Climate Change and Energy Chris Bowen said on Tuesday that the offshore wind had huge economic and employment potential for the Hunter and Australia.
"When you're starting a new industry, you'll always have challenges to overcome, but the future remains potentially very strong for offshore wind and all the jobs that it involves," he said.
Mr Bowen was in Western Australia's Bunbury offshore wind zone on Tuesday to offer a feasibility licence to Bunbury Offshore Wind Farm Pty Ltd to operate in the northern part of the zone.
The project has the potential to deliver 1.5 gigawatts of reliable renewable electricity, enough to power about one million homes, and could employ 900 workers during construction with 450 ongoing jobs.
The Minister has shortlisted two projects: one from Westward Wind Pty Ltd and an additional project from Bunbury Offshore Wind Pty Ltd for a preliminary feasibility licence in the southern area of the zone. The two applicants will now seek to resolve the overlap between them.
Novocastrian Wind Pty Ltd has been given more time to weigh up its involvement in the Hunter's offshore wind project due to uncertainty that is rocking the global industry.
Project partners, Australian company Oceanex and Norwegian energy giant Equinor, were offered a feasibility licence for their two GW project in late February.
The government initially gave the partners 90 days to consider the offer, given that the offer was made just prior to the federal election campaign.
The timeframe expired last week. The government has since agreed to allow another 90 days for the partners to develop their commercial arrangements, given the challenges facing the industry.
While Oceanex is keen to move ahead, Equinor's recent public statements have raised questions about its commitment to the project.
If they are unable to resolve their issues, the government could be forced to call for fresh licence applications for the zone, which it declared in 2023.
Oceanex founder and chief executive Andy Evans told the Newcastle Herald that the company remained committed to making the Novocastrian Wind project a reality.
"We love the region and the people, and we know it's the perfect place to start a floating offshore wind industry in Australia," he said.
In previous statements, Equinor has said that it was assessing the government's offer as part of the prescribed legislative framework.
On Tuesday, a spokeswoman said the company continued to believe Newcastle had strong characteristics for an offshore wind industry, including a legacy of heavy industry and innovation, supply chain capabilities, infrastructure and wind resources offshore.
"We will continue to assess the feasibility licence, and if accepted, the initial focus will be on community and stakeholder engagement, supply chain development, as well as environmental studies and baseline surveys," the spokeswoman said.
"This phase is expected to take up to seven years, and consultation with stakeholders is a key component of environmental approvals under legislative and regulatory requirements."
The Herald understands Equinor will also have to make significant milestone payments to its commercial partner if it signs off on the licence.
Equinor, formerly known as Statoil, changed its name in 2018 as part of a rebrand away from oil and gas to broader energy generation.
Throughout 2024, it announced a retreat from offshore wind, closing its office in Vietnam and cancelling all offshore wind projects in Portugal and Spain.
It also reduced the number of employees in its renewable energy division by 20 per cent, roughly a cut of 250 jobs globally.
In February 2025, as part of its Q4 and 2024 annual results, Equinor announced it would halve its renewables investment from US$ 10 billion to US$5 billion. It has also lowered its capacity for renewables from 12 - 16 GW to between 10 -12 GW.
The company recently recommenced construction of its 810-megawatt Empire Wind 1 project off downstate New York after the Trump administration claimed there were "serious issues with respect to the project approvals".
Aside from offshore wind, the company has been lifting its investments in offshore oil, including plans to invest US$6.7 billion each year through to 2035 in Norway's offshore oil sector.
Overall, it is increasing oil and gas production, aiming for a 10 per cent growth from 2024 to 2027.
In April 2025, institutional investors, including a Danish and Swedish pension fund, as well as Australia's Centre for Corporate Responsibility, expressed their concerns at the incompatibility of the plans with Equinor's stated commitment to net zero.
Despite a high-profile campaign against the Hunter Offshore Wind Project in the lead-up to last month's federal election, Labor increased its majority in the seat of Paterson.
Minister for Climate Change and Energy Chris Bowen said on Tuesday that the offshore wind had huge economic and employment potential for the Hunter and Australia.
"When you're starting a new industry, you'll always have challenges to overcome, but the future remains potentially very strong for offshore wind and all the jobs that it involves," he said.
Mr Bowen was in Western Australia's Bunbury offshore wind zone on Tuesday to offer a feasibility licence to Bunbury Offshore Wind Farm Pty Ltd to operate in the northern part of the zone.
The project has the potential to deliver 1.5 gigawatts of reliable renewable electricity, enough to power about one million homes, and could employ 900 workers during construction with 450 ongoing jobs.
The Minister has shortlisted two projects: one from Westward Wind Pty Ltd and an additional project from Bunbury Offshore Wind Pty Ltd for a preliminary feasibility licence in the southern area of the zone. The two applicants will now seek to resolve the overlap between them.
