The offshore wind farm planned for the Illawarra takes a turn as major developers Equinor and Oceanex choose not to bid for a licence in the $10 billion project.

Norwegian oil and gas giant, Equinor, has announced its decision to abandon plans for the 2.9 gigawatt project off the coast of the Illawarra.

"Equinor decided not to submit a feasibility licence application for the Illawarra offshore wind zone," a spokesperson for the company confirmed.

The decision comes as part of an ongoing review of the company's early-stage investments.

"We carefully evaluated risk factors currently affecting the global industry and conducted project-specific and site-specific assessments."

Equinor and Oceanex have secured a provisional feasibility licence for the Hunter offshore wind zone, which extends from Norah Head to Port Stephens. They will now focus their efforts on this region, with the project expected to generate enough energy to power 1.2 million homes.

Amanda de Lore, Vice President of anti-offshore wind farm group Responsible Future, welcomed the developers' exit from the Illawarra project.

“We would welcome the opportunity to discuss viable alternatives for the Illawarra with the Minister [Bowen] and re-engage with the community so we can start to heal” says de Lore. 

In a press conference today, Energy Minister Chris Bowen has quashed any suspicions that the government should readdress the size of the zone to attract larger developers.

“The suggestion that there are no applications for the Illawarra zone is utterly wrong,” Bowen says, “There are six zones around Australia, not every proponent has to apply for every zone.”

Former Liberal MP for Bega, Andrew Constance, commented on the decision, criticising the current government.

"The decision of Equinor and Oceanex to walk away is embarrassing for the Albanese Government, who have achieved nothing other than dividing our community again."

Member for Gilmore, Fiona Phillips has hit back at Constance’s claims and has stated the project remains on track.

“I really wish Andrew Constance and Responsible Future Illawarra would stop with the misinformation and negativity.”

With feasibility licence applications now closed, construction in the offshore wind area can only proceed once developers receive environmental and management plan approvals, in line with relevant legislation.