Up to four major offshore wind energy developers have abandoned a proposed project in Western Australia, citing challenges and a lack of support from the state and federal governments. The project, worth approximately AUD 4,000 square kilometers, was approved in 2022 to be located 40 kilometers off the coast of Bunbury in the South West region. Flotation Energy, Danish developer Copenhagen Energy, and previously Oceanex, Skyborn Renewables, and Alinta Energy have withdrawn from the project, leaving only four remaining international developers in the running.
The withdrawal of major proponents has raised concerns about the competitiveness of the project, with Copenhagen Energy CEO Jasmin Bejdic stating that the lack of evidence on grid connections and offtake demand meant that even if they were granted a feasibility license, they probably would not have taken it. Bejdic also expressed disappointment with the lack of government support for offshore wind projects, noting that the focus on gas and the lack of electrification in WA made the project unviable.
Flotation Energy’s head of Australian operations, Carolyn Sanders, also criticized the delays and lack of government support, stating that it was a “disincentive to operating in Australia.” She noted that the company would invest elsewhere, citing lower-risk opportunities.
The withdrawal of major proponents has left the project in limbo, with the federal government refusing to name the remaining four international developers. Offshore wind consultant Tim Sawyer attributed the uncertainty to the election year, stating that developers had struggled with uncertainty surrounding projects in a double election year. The federal opposition has also vowed to scrap the project, citing community opposition.
The development is a setback for the WA government, which has faced criticism for its lack of support for offshore wind projects. Premier Roger Cook has expressed support for the project, although the state’s previous stance on offshore wind was that it was not viable for the foreseeable future. The ongoing uncertainty surrounding the project is likely to continue until the federal election, with the outcome of the project hanging in the balance.