Equinor has pulled out of Australia’s planned Novocastrian Offshore Wind Farm near Newcastle after failing to agree terms with partner Oceanex. The 2 GW project, once slated for 2028–2031, now faces uncertainty, reflecting broader challenges for global offshore wind investments.
In a significant setback for Australia's renewable energy ambitions, Norwegian energy firm Equinor has officially declined to proceed with the Novocastrian Offshore Wind Farm development in New South Wales. The project, in collaboration with local partner Oceanex Energy and backed by a feasibility license from Canberra, aimed to deploy a 2 gigawatt floating wind installation located over 12 miles off Newcastle’s coast.
Energy Minister Chris Bowen disclosed that Equinor and Oceanex failed to reach agreement on the conditions required to advance to the next stage, prompting Equinor to withdraw. The project was penciled in for construction starting around 2028, with operations slated for 2031, and was expected to drive substantial job creation during the build phase.
Equinor’s retreat is not isolated; earlier this year, the company exited its third Australian offshore wind venture—the Bass Offshore Wind Energy project near Tasmania—handing full ownership to Nexsphere. This pattern underscores mounting economic and logistical challenges facing offshore wind development globally. Also highlighted was a recent exit from European projects, reinforcing a broader strategic repositioning.
Minister Bowen emphasized the government’s continued support for renewable energy, noting that despite this setback, research licenses and pilot programs will still advance offshore wind development in other potential zones.