Illawarra offshore wind zone developer shortlist announced

The federal government has released the shortlist of four development groups that will proceed to the detailed bid stage for the Illawarra offshore wind zone declared in the waters off the New South Wales south coast, representing the most advanced planning to date for what is expected to be Australia's first operational offshore wind project.

The four shortlisted groups include Australian Energy Resources (AER), a consortium led by the Danish offshore wind developer Ørsted, a separate consortium including Shell and BP, and the Australian government-backed Offshore Energy Australia vehicle that is developing capabilities to anchor a domestic offshore wind supply chain.

The detailed bid phase — which will run for 18 months — will require each group to develop detailed environmental impact assessments, grid connection studies, community engagement plans, and commercial structures that demonstrate project feasibility and the capacity to deliver the wind energy generation that the zone is capable of producing.

NSW Energy Minister Penny Sharpe said the shortlisted groups had demonstrated "the technical and financial credibility required to advance the Illawarra zone to this stage," noting that the zone's proximity to the Port Kembla heavy industrial port, the transmission network that BlueScope's operations require, and the undersea cable connection potential to the Sydney grid made it the most favoured location for Australia's first utility-scale offshore wind development.

Community consultation in the Wollongong and Shoalhaven local government areas will be intensified during the bid phase, with a formal consultation framework established to ensure that coastal residents, fishing communities, and commercial marine operators have structured input into the project's design that the government has committed to consider.

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