Chris Bowen accuses Coalition of creating ‘sovereign risk’ by opposing offshore projects as Nationals celebrate ‘major win’
An offshore windfarm developer has asked the Albanese government to pause its application to progress its project off the Illawarra until after the coming federal election, after the Coalition campaigned against it.
BlueFloat Energy was the only applicant asking for a seven-year feasibility licence to further develop its project in the deep waters of the Illawarra offshore wind zone.
The company did not say why it had asked for the pause, but the zone is one of at least two of the six declared by the Albanese government that the Coalition has pledged to scrap.
The Coalition has also said that if elected, it would scrap the Southern Ocean offshore zone, where the climate change and energy minister, Chris Bowen, on Friday announced the Spinifex offshore windfarm had been granted a feasibility licence.
The Novocastrian Offshore Wind Farm in the Hunter zone was also granted one of the licences, which require companies to develop management plans, seek environmental approvals and consult with local community, industry and authorities.
On Friday, the Nationals leader, David Littleproud, celebrated BlueFloat’s decision in the Illawarra zone, calling it a major win.
He said: “The Nationals were the first political party to have the courage to commit to ruling this project out last year and instead prioritise protecting the natural environment.”
BlueFloat’s separate Gippsland Dawn offshore wind project was awarded a feasibility licence in June 2024.
Bowen on Friday said the opposition leader, Peter Dutton, had created “sovereign risk” by opposing the offshore projects.
He said: “[The Coalition’s] commitment to scrapping the Illawarra zone will undermine energy security for the region and create operating risks for major energy users.”
Ria Voorhaar, a spokesperson for the Illawarra-based pro-offshore wind group Good for the Gong, said: “People are sick and tired of the politically divisive approach to the energy transition in this country.
“The majority of Illawarra want climate action and this offshore wind project but the political uncertainty and thus the investment uncertainty created by this pseudo Trump approach of Dutton’s makes it harder for businesses to go all in.”
The Electrical Trades Union national secretary, Michael Wright, said the Illawarra decision had placed 2,500 direct jobs in doubt.
He said: “The facts are simple, to keep the lights on we need projects like this to create good union jobs that families can depend on. Dutton’s campaign of fear and misinformation is now costing jobs in the Illawarra.”
Campaigners in Gippsland celebrated the news – also announced on Friday – that the country’s most advanced offshore wind project, Star of the South, was in talks with BlueScope steel to potentially use its steel for boat landings and platforms for turbine foundations.
Wendy Farmer, of Friends of the Earth in Gippsland, said: “This shows how building renewables is good for manufacturing jobs in the regions and is building a stronger future for our young people.”