Orsted receives license to develop offshore wind farms in Australia

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Orsted has received feasibility license from the Australian Government for its first offshore wind project in Australia. Orsted is also expected to receive license for a second wind power project from the Govt., subject to consultation.

Orsted aims to develop offshore wind farms off the coast of Gippsland, Victoria, to be operational in the early 2030s. Orsted did not reveal financial details of the wind energy project.

Orsted will have site exclusivity to develop the two offshore wind sites. Australian Government assessed Orsted’s feasibility license applications through a competitive process.

Orsted’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.

Facts about Orsted’s Gippsland offshore wind sites

Potential capacities: 2.8 GW (licence area 1) and 2 GW (licence area 2)
Location: 56-100 km off the coast of Gippsland, Victoria
Water depth: average 60 m
Size of the sites: 700 km2 (license area 1) and 490 km2 (license area 2)
Expected completion: the early 2030s

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

Orsted 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.

“We’ve secured the best possible sites, and that our proposed projects in Victoria will deliver reliable, cost-effective renewable energy,” Per Mejnert Kristensen, Senior Vice President and CEO of Region APAC at Orsted, said.

The project is set to create thousands of jobs and will support local talent in joining the industry through technical knowledge and skills transfer programs.

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