Equinor has pulled out of a $10 billion offshore wind farm project off the coast of New South Wales, Australia, dealing a major setback to the country’s renewable energy ambitions. The Norwegian energy company confirmed on Friday it will not proceed with the feasibility licence for the Hunter Offshore Wind Farm, citing changes in its global strategy and investment priorities.
The decision effectively halts what was intended to be one of Australia’s largest offshore renewable energy projects. The Hunter Offshore Wind Farm, located off the coast near Newcastle and Port Stephens, was planned to deliver up to 2 gigawatts of floating wind power and create approximately 3,000 construction jobs. The 500-square-kilometre development area had been declared by the federal government in July 2023 as part of a broader initiative to boost clean energy infrastructure.
Equinor, a major global player in energy transition, partnered with Australian firm Oceanex to develop the project. Equinor’s exit was confirmed just days before it was expected to formally accept the feasibility licence issued by the federal government. The company said the decision aligns with its shift away from select international offshore wind markets, including recent withdrawals from projects in Portugal, Vietnam and Spain.
Australia’s Energy Minister Chris Bowen acknowledged the decision, attributing it to Equinor’s reprioritisation of capital but insisted it was not a reflection on the potential of the Hunter region or Australia’s regulatory environment. Oceanex, Equinor’s local partner, expressed disappointment over the withdrawal, but signaled continued interest in the site, stating that it remains committed to advancing offshore wind development in Australia.
Equinor confirms strategic retreat from global offshore wind
However, industry analysts note that without a global financial backer, Oceanex faces significant hurdles in progressing a project of this magnitude on its own. Local and political reactions have been sharply divided. Federal MP Alison Penfold, a vocal critic of the project, welcomed Equinor’s withdrawal, calling it a victory for the Hunter community.
She argued that the region’s coastline was unsuitable for industrial-scale offshore wind infrastructure and urged the federal government to rescind the declared wind zone entirely. Environmental and recreational fishing groups have also raised concerns about the impact of large offshore wind farms on marine life and coastal industries.
Senator Ross Cadell, representing the Hunter region, went further, declaring the project “dead in the water” and calling for the resignation of the energy minister over the collapse. Critics claim the government moved too quickly in declaring offshore wind zones without securing long-term industry or community backing.
Equinor joins BlueFloat in abandoning billion-dollar projects
Equinor’s departure follows a similar decision by Spanish company BlueFloat Energy last month, which cancelled its A$10 billion Gippsland Dawn offshore wind project in Victoria after failing to attract buyers and investors. Both exits come amid rising global interest rates, inflationary pressure, and mounting challenges in securing equipment and vessels for offshore wind construction.
The back-to-back withdrawals by major international developers have raised fresh doubts about the feasibility of Australia’s offshore wind targets. The federal government has committed to 82 percent renewable energy generation by 2030, but industry stakeholders warn that such goals are now at risk unless market conditions and regulatory certainty improve.
Investors have also expressed concern over a lack of clear infrastructure planning, port readiness and financial support mechanisms. While Australia has abundant offshore wind potential, particularly along the southern and eastern coasts, developers continue to face complex permitting processes and high upfront costs.
With Equinor stepping away and BlueFloat’s exit still fresh, confidence in Australia’s ability to attract and retain major players in the offshore wind sector is being tested. The government has yet to confirm whether a new proponent will be sought for the Hunter zone or if the licence area will be reallocated. – By Content Syndication Services.