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The Australian Government has approved Ørsted’s inaugural offshore wind project and plans to grant a license for a second project pending consultation. Ørsted intends to establish extensive offshore wind farms off Gippsland, Victoria, slated for operation in the early 2030s. The licenses grant Ørsted exclusive rights to develop the two offshore wind sites, secured through a competitive evaluation process. Situated 56-100 km off the coast of Gippsland, Victoria, Ørsted’s far-shore project sites are positioned beyond the shore’s visible horizon, boasting exceptional wind conditions.
The projects will advance with site investigations, environmental evaluations, and supply chain enhancements. Ørsted plans to participate in upcoming auctions held by the Victorian Government to help achieve the state’s 9 GW offshore wind target by 2040. The initial auction is anticipated to commence in late 2025.
Pending the outlined procedures and a final investment determination, the projects are set to be executed in stages starting from the early 2030s. The goal is to leverage synergies between the two sites, maximizing efficiency through shared resources and economies of scale.Ørsted expects that the cluster could produce a total of 4.8 GW of renewable energy, eventually supplying enough power for approximately four million Australian households.
,Per Mejnert Kristensen, Senior Vice President and CEO of Region APAC at Ørsted, said,
“With more than 30 years’ experience and unparalleled expertise in large-scale offshore wind projects, Ørsted is pleased to be awarded licences to help launch Australia’s new industry and accelerate the nation’s renewable energy transition.
“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. We’ll continue to work closely with the Commonwealth government, the Victorian State government, and all stakeholders to ensure the projects create sufficient value for all.”
