29 January 2026

BlueFloat's Illawarra withdrawal opens up new opportunities, proponents say

| By Zoe Cartwright
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A map showing a proposed offshore energy zone

A map showing the proposed renewable energy zone off the Illawarra coast. Photo: DCCEEW.

BlueFloat Energy has formally withdrawn its application for a feasibility licence in the Illawarra Offshore Wind Zone, but the government says this is the start of a new direction for the Illawarra Offshore Energy Zone.

A joint statement from federal MPs Alison Byrnes, Fiona Phillips and Carol Berry said the zone remained in effect and could be reopened for licence applications in future.

“BlueFloat has made this decision based on commercial reasons, driven by global pressures including supply chain constraints, impacting the offshore wind industry worldwide,” the statement read.

“BlueFloat, a global consortium, is withdrawing from the industry worldwide, including recently surrendering its feasibility licence in the Gippsland Offshore Wind Zone.

“The declared offshore wind zone in the Illawarra remains in effect and could open for applications for feasibility licences again should there be competitive interest for development and will play a role in research and development until then.

“With our deep-water port, heavy industrial background, world-class research university and a workforce that is looking to embrace possibilities of the future, the Illawarra is uniquely placed to play a key role in the national and global energy future.”

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Offshore wind zone opponent Responsible Future Illawarra said the announcement BlueFloat had pulled out reflected concerns the group had raised exactly 12 months ago.

Spokesperson Alex O’Brien hailed the move as an end to uncertainty around the project.

“We raised all of this publicly a year ago because we were concerned about what we were seeing on the ground,” Mr O’Brien said.

“We are not taking satisfaction in being proven right. We simply wish the community had not had to go through such a long and painful period of uncertainty.”

Now, research and demonstration licences are open for application to allow emerging renewable energy technologies such as floating wind turbine foundations, or wave and tidal power, to be investigated and tested in the Illawarra.

The research and demonstration licences will last for 10 years, apply to all of Australia’s six declared Offshore Wind Zones and will be assessed on “appropriateness”. Projects will require community consultation.

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Madeleine Holme from Good for the Gong said her volunteer group was keen to see what might emerge from those licences.

“Delays are frustrating, but the offshore wind zone is a big project and we want to see it done right,” she said.

“It is a new technology and we’re excited to see the opportunities that could stem from the research and development licences to further develop the technology around offshore wind.

“We hope these projects can answer a lot of questions the community has around offshore wind.

“Across Australia, we’re seeing some really positive signs around offshore wind in WA and Gippsland, and we would love the Illawarra to be there, but we’re not yet.”

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