Equinor Withdraws from Hunter Offshore Wind Farm Project in Australia

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Equinor has announced its withdrawal from the Hunter Offshore Wind Farm, casting uncertainty over the $10 billion renewable energy project in New South Wales. The Novocastrian Offshore Wind Farm, a joint initiative between Norwegian energy company Equinor and Australian firm Oceanex, had been awarded a federal feasibility license in February 2025. The project was designed to generate 2,000 megawatts of power using floating foundation technology, located roughly 20 kilometers off the coast near Newcastle and Port Stephens. At its peak, the project was expected to create more than 3,000 construction jobs and make a significant contribution to Australia’s renewable energy targets.

Equinor cited global strategic shifts and a reassessment of its renewable energy investments as the reasons for its decision. Critics argue this highlights the risks of government-driven renewable mandates, where taxpayer-backed incentives attempt to shape private investment decisions. Energy Minister Chris Bowen expressed disappointment over the withdrawal, noting that Equinor’s exit follows similar moves in countries such as Vietnam, Portugal, and Spain. Minister Bowen emphasized that Oceanex, as a smaller domestic company, would need a substantial international partner to advance a project of this scale.

Oceanex responded by reaffirming its commitment to offshore wind energy in the Hunter region. The company stated it would continue exploring alternative partnerships to ensure the project progresses, highlighting the potential benefits of offshore wind for both the regional economy and Australia’s energy infrastructure. Observers note that relying heavily on government policies rather than market viability can increase project risk and uncertainty. Industry analysts note that securing an experienced international partner will be critical to the project’s viability and to maintaining investor confidence in the sector.

The withdrawal of Equinor follows a broader pattern of global energy companies reassessing their involvement in Australian offshore wind projects. Earlier in 2025, BlueFloat Energy abandoned its $10 billion Gippsland Dawn Offshore Wind Farm in Victoria, citing commercial viability concerns amid market uncertainties. These developments have prompted questions about the attractiveness of Australia’s offshore wind sector for international investment and raised concerns about the stability of large-scale renewable projects in the country.

In response to these challenges, the federal government has introduced new guidance for research licenses in declared offshore zones. Minister Bowen stressed the importance of continued research and development in offshore renewable energy technologies, aiming to provide clearer pathways for future projects and strengthen investor confidence. Some industry watchers suggest that a lighter regulatory approach could allow private companies to innovate and invest without heavy government intervention.

Despite Equinor’s withdrawal, proponents of offshore wind energy remain optimistic about the sector’s prospects. With appropriate policy support, regulatory clarity, and strategic partnerships, Australia is positioned to leverage its extensive offshore wind resources to meet renewable energy targets and stimulate economic growth. However, the situation underscores the importance of allowing private investors to make independent decisions based on market realities rather than government expectations. The Hunter region, with its established industrial base and energy infrastructure, is considered a promising hub for future offshore wind developments.

The challenges facing the Novocastrian project illustrate the complexities of transitioning to renewable energy in a global market characterized by shifting investment priorities. The outcome of this initiative will have implications not only for domestic policy but also for international investment in Australian renewable energy. Experts say balancing government guidance with market-driven investment decisions will be key to ensuring sustainable growth in the sector. Observers believe the project’s trajectory could serve as an indicator for the future of offshore wind in the country, influencing both government strategy and private sector participation.