Ørsted secures licences to develop large-scale offshore wind projects in Australia

Ørsted A/S (Orsted) Ørsted secures licences to develop large-scale offshore wind projects in Australia 01-May-2024 / 08:33 CET/CEST 1.5.2024 08:32:54 CEST | Ørsted A/S | Investor News

The Australian Government has announced that it has granted a feasibility licence for Ørsted’s first offshore wind project in Australia and intends to grant a licence for a second project, subject to consultation. With the licences, Ørsted aims to develop large-scale offshore wind farms off the coast of Gippsland, Victoria, to be operational in the early 2030s.

The licences provide Ørsted with site exclusivity to develop the two offshore wind sites. Ørsted’s successful feasibility licence applications were assessed through a competitive process.

Ørsted’s far-shore project sites are located 56-100 km off the coast of Gippsland, Victoria. They are situated beyond the visible eyeline from the shore and benefit from excellent wind conditions. 

The next steps for the projects include site investigations, environmental assessments, and supply chain development. Ørsted will progress the projects with a view to bid in future auctions run by the Victorian Government, supporting the state’s target of 9 GW offshore wind by 2040. The first auction is expected to start in late 2025.

Subject to the above steps and a final investment decision, the projects are expected to be completed in phases from the early 2030s, with the aim to maximise dual site synergies through shared resources and economies of scale. 

Ørsted estimates the cluster has the potential to generate a combined 4.8 GW of renewable energy, which can eventually power the equivalent of four million Australian homes.

Per Mejnert Kristensen, Senior Vice President and CEO of Region APAC at Ørsted, said:

“With more than 30 years’ experience and unparalleled expertise in large-scale offshore wind projects, Ørsted is pleased to be awarded licences to help launch Australia’s new industry and accelerate the nation’s renewable energy transition.

“We believe that we’ve secured the best possible sites, and that our proposed projects in Victoria will deliver reliable, cost-effective renewable energy. We look forward to delivering long-term benefits for communities, the economy, and the environment in Gippsland and beyond.