Equinor and Oceanex pull out of Illawarra/Southern Sydney Offshore Wind Project
15 October, 2024: The Daily Telegraph reported that Equinor & Oceanex had withdrawn from the Illawarra Offshore Wind project. While some see this as the end of the proposed floating offshore wind development, that is not the case. We understand at least one company remains interested in pursuing this proposal. We remain firmly opposed and will continue fighting to stop it.
Background: On June 15, 2024, the Federal Government declared a 1,022 km² offshore renewable energy zone off the Illawarra and southern Sydney coastline, stretching from Wombarra to Kiama. The area begins around 20kms offshore, with proposed turbines potentially as close as 26kms from homes in the Cronulla-Sutherland Shire. Details of the DCCEEW Illawarra declaration can be viewed here.
This proposal involves floating wind turbines up to 268 metres high—taller than most city skyscrapers. Because of the ocean depth, the turbines would be anchored to the seabed using tethering systems. According to the Department of Climate Change, Energy, the Environment and Water (DCCEEW) the project could involve multiple large-scale developments across the marine environment off the Illawarra and southern Sydney shoreline.
This proposal is expected to generate 2.9 GW electricity and would require multiple offshore substations, extensive undersea cabling and significant onshore infrastructure to connect the grid. This would be a substantial industrialisation of the marine and coastal environment..
UPDATE: 23 January 2026
The Federal Government announced a preliminary decision not to issue feasibility licences for offshore power generation projects in the Illawarra Renewable Energy Zone, due to insufficient competitive bids. A similar decision was made for the Bass Strait zone.
While this was an important development, both zones could still be used for research and development projects under Research and Demonstration (R&D) licences.
Why Research and Development (R&D) Licences Matter
R&D licences are now available in all six offshore renewable energy zones. This newly created R&D licence category provides a new pathway for offshore renewable energy developers to test emerging technologies.
Floating wind turbines, wave energy generators, and other experimental offshore power systems could still be trialled in the Illawarra zone. T
Responsible Future (Illawarra Chapter) Inc believes any R&D or demonstration project MUST BE subject to rigorous environmental assessment, transparent community consultation, financial assurance and clear decommissioning obligations before approval.
Learning from Past Experience
The Illawarra has firsthand experience of the risks associated with offshore demonstration projects. In 2010, the Oceanlinx Wave Energy Converter off Port Kembla broke free from its moorings during heavy seas and later sank near the breakwater.
After the developer encountered financial difficulties, the structure remained semi-submerged for an extended period before public funds were used to assist with cleanup efforts.
This experience demonstrates why strong financial safeguards are essential for offshore projects. Developers should be required to provide bonds or other financial security to ensure that decommissioning, cleanup, and remediation costs are covered, protecting taxpayers from future liabilities.
Mooring, Swell and Offshore Safety Considerations
The waters off the Illawarra and Newcastle coast are subject to powerful ocean swells and challenging marine conditions. Any proposal to deploy floating offshore infrastructure must demonstrate that it can safely withstand these conditions over the long term.
Deep-water projects located far from shore bring significant engineering, maintenance and emergency response challenges. Prior to any Research and Demonstration (R&D) licence being approved, the full risks associated with mooring systems, vessel operations, equipment failure, and environmental impacts should be independently assessed and publicly scrutinised.
What was Initially Proposed for the Illawarra Offshore Wind Development?
The Illawarra coastline was the proposed site for a substantial offshore wind energy initiative. In August 2023, Minister for Climate Change and Energy, Chris Bowen, announced plans for a Renewable Energy Zone, 10 kilometres offshore from Wombarra and Wollongong extending to 30 kilometres offshore from Kiama.
The proposal involved the installation of around 300 turbines, each over 260 metres in height—structures that would stand taller than most city skyscrapers. The scale of the project, as advised by the DCCEEW, would likely result in a significant transformation of the seascape, integrating “multiple large scale developments” into the marine environment.
According to the details shared by BlueFloat Energy, an operation of this magnitude would require substantial support infrastructure, including around 6 floating substations for every 300 turbines to manage the generated power. This element of the project underscores the extensive nature of the proposed offshore grid connection that aims to link the ocean-based technology with the onshore energy network.
Additional Information
There is additional information including research links on the website nooffshoreturbines.com.
We will not replicate the research here but instead over time, include relevant reports we have compiled concerning risk factors associated with offshore wind turbines. We would encourage you to review the extensive content on this website and explore other sources of information to further validate the research.
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