Novacastrian Offshore Wind says it has made a decision not to proceed with the feasibility licence offered to it by the Australian Government for the Novocastrian offshore windfarm
The company said the decision not to proceed with the 2- GW windfarm in the Hunter offshore wind zone designated by the Australian government “reflects a combination of broader challenges facing the offshore wind industry and project specific factors.”
Novocastrian Wind Pty Ltd is owned by oil company Equinor, Green Tower, an early stage investor, and founding members of Oceanex Energy, Andy Evans and Peter Sgardelis, who played a pivotal roles in originating offshore wind in Australia and co-founded Australia’s first offshore wind farm, Star of the South.
Responding to the decision, Mr Evans said Oceanex wanted to express its disappointment with the decision by Novocastrian Wind Pty Ltd not to accept the feasibility licence for the project. He said Oceanex had been unable to reach agreement with its project partner in Novocastrian Wind to accept the feasibility licence offered by the Australian Government. Mr Evans said the shareholders of Oceanex fully supported acceptance.
Novocastrian was established by Mr Evans and Mr Sgardelis, who also held a shareholding in the company. It introduced further investment from Equinor in late 2022.
“The licence was the first offshore wind rights offered in the Southern Hemisphere for floating foundation technology and would have put New South Wales and Australia at the forefront in the deployment of deep-water offshore wind energy,” said Mr Evans.
“Oceanex has always supported, and continues to support, the development of offshore wind off the Hunter Coast and New South Wales, and we look forward to exploring any future possibility in progressing this goal.
“Whilst this is obviously a setback, we will be exploring all options to make offshore wind a reality in the Hunter. With 100 years of industrial history and renowned for powering New South Wales and the nation, the Hunter is key to Australia’s future.
“A number of events have given rise to great optimism in recent months,” said Mr Evans, “including the re-election of a Government committed to renewables and the creation of thousands of Australian jobs, and geopolitical uncertainty in other countries, that create a conflation of opportunity for Australia. When put in that light, it only highlights the disappointment in not proceeding with the Novocastrian windfarm at this time.
“Oceanex will continue examining ways of creating an industry the Hunter, one that it has proven it can easily progress and be a global leader in. Offshore wind remains a key part of Australia’s energy mix and need to decarbonise going forward. In particular, it is essential to ensuring prosperity in Australia’s key regions outside of capital cities, and ensuring that generations of Australians are given the freedom to live where they wish to live, whilst earning fair and just incomes to support themselves, their families and their communities.”
