Orsted celebrates advance of 4.8GW mega project as Australia grants first ever offshore wind licences

CIP and Mainstream Renewable Power also confirm feasibility licences for gigascale wind farm projects

Orsted's is the biggest of the projects in the licensing processing in Australia, but CIP's is not far behind.
Orsted's is the biggest of the projects in the licensing processing in Australia, but CIP's is not far behind.Foto: Orsted

Orsted has been granted a licence for its first major offshore wind project in Australia, targeting a dual 4.8GW wind farm development off the coast of Gippsland, Victoria, expected to be operational early next decade.

The feasibility licence gives the Danish wind developer exclusive rights to develop its chosen offshore wind site. The Australian government has already indicated that it intends to award similar rights to a second area off Gippsland, Orsted stated today (Wednesday).

The rights were awarded following assessment of applications submitted in a competitive process whereby Australia looks set to launch its first offshore wind farm projects, with six in the pipeline.

The Danish company's project sites are located between 56 and 100 kilometres off the coast of Gippsland, Victoria. Orsted described their potential capacities as 2.8GW and 2GW, respectively, with an average water depth of 60 metres.

The first, described as licence area 1, covers an area of 700km2 while licence area 2 spans 490km2.

“They are situated beyond the visible eyeline from the shore and benefit from excellent wind conditions,” Orsted said in its statement.

“The next steps for the projects include site investigations, environmental assessments, and supply chain development."

The company eventually intends to bid the wind farms in future auctions run by the Victorian Government, supporting the state’s target of 9GW offshore wind by 2040.

The first such allocation auction is expected to start in late 2025.

Orsted’s CEO for the APAC region Per Mejnert Kristensen commented: “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.

“We’re confident that Australia has all the ingredients to become a thriving and highly investable offshore wind market.”

CIP and Ocean Winds among winners

Copenhagen Infrastructure Partners’ has also confirmed that that it is among a group of developers to which the government has handed out the hotly fought-over licenses.

CIP said today that it too has gained site exclusivity to develop offshore wind projects over two areas one 586km2 and the other 689 km2.

The two projects, called 'Star of the South' and Kut-Wut Brataualung, have the potential to deliver up to 4.4 GW of capacity, CIP said.

Ocean Winds, a joint venture between Iberian developer EDPR and France’s Engie, was also awarded a license for its 1.3GW High Sea Wind Project North project, on an area spanning 150km2 off the coast of Gipplsand.

Blue Mackerel North and the Kut-Wut Brataualung Project were also reportedly successful.

And another joint venture, Gippsland Skies, was confirmed as a winner today.

Mainstream Renewable Power announced that this consortium has been granted a feasibility licence for a fixed bottom 2.5GW offshore wind project off the Gippsland coast.

Gippsland Skies, which also comprises Reventus Power, AGL Energy and DIRECT Infrastructure, will now carry out detailed studies and multi-year offshore and onshore environmental surveys.

Subject to the usual approval and consultation processes, the first phase of the project is expected to be operational in 2032, according to Mainstream.

Mary Quaney, CEO for Mainstream Renewable Power, said: “Mainstream is a pioneer in the global offshore wind industry and our track record includes developing the world’s largest offshore wind project in operation today — Hornsea 2 in the UK.

"We have been present in Australia since 2019, developing a 1.5GW portfolio of greenfield projects onshore and we're now excited to add offshore wind to our pipeline in this very promising market for renewable energy development.”

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