Parkwind and Alinta Secure Feasibility Licence for Wind Farm Project Offshore Australia

September 26, 2024, by Adnan Durakovic

The Australian government has preliminarily offered a feasibility licence to Spinifex Offshore Wind Farm, a potential offshore wind farm to be developed off Southwest Victoria by Alinta Energy and Parkwind.

The feasibility license grants the project, located in the Southern Ocean zone, off Victoria’s south-west coast, the opportunity to explore the viability or practicality of the proposed project within a designated area.

It is a requirement that allows projects to conduct further research, tests and consultation. It does not provide an approval for, or endorsement of, the design of the projects or other matters to be handled under planning and environmental approvals.

Should the project go ahead, it could generate 1.2 GW of electricity, enough to supply around ten per cent of Victoria’s current electricity needs – equivalent to 650,000 Victorian homes.

The project is expected to create hundreds of jobs during construction and operation as well as injecting hundreds of millions of dollars into Southwest Victoria’s economy.

This industry could support future onshore manufacturing for Victoria, as it builds on the local industrial expertise and infrastructure in Portland and surrounds, Australia’s Ministry for Climate Change and Energy said.

To maximise the proposed project’s potential economic and social benefits for the region, workers, and local supply chains, the government will convene a Southern Ocean Wind Industry Committee, bringing together the licence holder, state and local governments, First Nations groups, local industry and workers’ representatives.

Consistent with the government’s approach on establishing an offshore wind industry, the Committee will work to maximise local content, as well as broader local benefits, delivering benefits for workers, local industry and the regional economy.

Spinifex will also have a community benefit sharing program and have already identified local businesses and industry that can be part of the project.

Minister for Climate Change and Energy Chris Bowen will now undertake further consultation with First Nations groups before making a final decision on the feasibility licence.

Consultation with First Nations groups, local communities, unions and marine users will continue throughout the feasibility licence process to ensure any planned offshore wind farm benefits the community and the region.

If feasibility for the Spinifex Offshore project is proven, the developer must obtain all necessary approvals, including rigorous environmental assessments, before applying for a commercial licence which would enable construction to commence, the Ministry said.

”My decision today is a big step towards powering communities and industries across Southwest Victoria with reliable renewables delivered by an offshore wind industry,” Minister Bowen said.

”I’ve made a preliminary decision to offer a feasibility licence to Spinifex’s project, which will support hundreds of new, high-value jobs and a future made in regional Victoria. Offshore wind represents a huge opportunity for regional Australia, providing reliable renewables to power homes and heavy industry while creating highly skilled and well-paid jobs now and into the future.”

The state of Victoria, home to the country’s first offshore wind development area, is targeting at least 2 GW of offshore generation capacity by 2032, 4 GW by 2035 and 9 GW by 2040.

”Victoria has world-class offshore wind resources and we look forward to Spinifex harnessing that to create reliable renewable energy for our homes and businesses and to share the benefits of this with the local community through jobs, local supply chains and community benefit sharing program,” Victorian Minister for Climate Action, Energy and Resources, Lily D’Ambrosio, said.

”This is another step closer to delivering our target of at least 2 GW of offshore wind energy by 2032 and will also help us get to net zero by 2045. Offshore wind will create real benefits for Victoria and Australia’s renewable energy production – creating hundreds of jobs, support for our key industries and reliable renewable energy as coal-fired power plants close.”