BlueFloat Energy Abandons 2.1GW Gippsland Dawn Offshore Wind Farm Project

The developer of the 2.1GW Gippsland Dawn offshore wind farm, BlueFloat Energy, has made the decision to abandon the project that was set to be built in the Bass Strait off the coast of Australia. This comes as a major setback for the renewable energy sector in the country.

The proposed $6.5bn (AUD 10bn) project was cancelled despite receiving major project status from the Australian government in November. Originally, construction was scheduled to begin in 2029, with the wind farm expected to be operational by 2031.

The offshore wind farm was planned to consist of up to 140 bottom-fixed turbines located 10 to 33km off the Gippsland coast, with the potential to power more than 1 million homes in the region.

BlueFloat Energy’s decision to abandon the project was influenced by its major shareholder, Quantum Capital, who deemed it no longer commercially viable to invest in the offshore wind sector. This move raises concerns about the future of renewable energy projects in Australia.

This recent development adds to the uncertainty surrounding Australia’s renewable energy targets, as this is the second wind farm project to be dropped in quick succession. Equinor, another energy company, also recently cancelled its plans to build a wind farm off the coast of Tasmania.

The Norwegian firm has not yet committed to building its other Australian offshore wind farm, Novocastrian Wind, despite being offered a second extension to accept a feasibility license. These cancellations cast doubt on the country’s ability to meet its renewable energy goals.

Australia has a target of achieving 82% renewable energy by 2030, but the recent setbacks have raised questions about the nation’s progress towards this target. While the federal government believes it is on track to meet its 2030 emissions reduction target, industry experts argue that more needs to be done to accelerate the transition to renewable energy.