Major Setback: Equinor Walks Away From Australia’s Most Advanced Offshore Wind Farm

The future of New South Wales’ offshore wind energy ambitions has suffered a major setback after Norwegian energy company Equinor confirmed it would withdraw from the state’s most advanced project - the 2 GW Novocastrian Offshore Wind Farm off Newcastle and Port Stephens.

Project Background

The Novocastrian Offshore Wind Farm, in Australia, was first announced by Oceanex in 2020, and was designed as a USD 10 billion development capable of generating 2,000 megawatts of clean energy. 

The project, located 20 kilometres off the coastline, aimed to harness floating foundation technology across a 500-square-kilometre licence area. The project was expected to potentially transform the power supply in the region.

Earlier this year, the federal government granted a feasibility licence to the consortium of Equinor and Oceanex, marking a significant milestone for NSW’s offshore wind industry. 

Equinor’s Withdrawal

Despite the federal government’s approval, Equinor announced it would not be accepting the feasibility licence, thereby withdrawing its support from the project altogether.

In a joint statement, the Novocastrian consortium attributed the decision to broader industry hurdles. The move echoes similar strategic retreats by Equinor in Australia, including its withdrawal earlier this year from a planned offshore wind farm in Bass Strait.

Broader Industry Context

The collapse of the Novocastrian project follows another major blow for NSW’s offshore wind sector. In July, the only company pursuing development in the Illawarra offshore wind zone also pulled out, citing financial and regulatory hurdles.

Together, these developments raise questions about the immediate viability of offshore wind in New South Wales, which had been seen as a critical component of Australia’s renewable energy transformation.

Equinor’s withdrawal underlines the rising difficulties facing offshore wind developers worldwide, including mounting costs, supply chain constraints, and tightening capital conditions.