Six developers exit WA offshore wind farm project

Six companies have decided not to pursue the offshore wind project in Western Australia, despite having invested millions. The project was approved by Federal Energy Minister Chris Bowen last September, covering about 4,000 square kilometers off Bunbury's coast. The latest withdrawals include Scottish company Flotation Energy and Danish firm Copenhagen Energy. They join other companies like Oceanex and Skyborn Renewables in stepping back from the project. Bowen said he remains "pleased with the level of interest" and noted that three new international developers have applied for feasibility licenses. Copenhagen Energy's CEO, Jasmin Bejdic, cited significant challenges as the reason for pulling out. He stated that the remaining companies are likely to be large conglomerates. He also expressed concern that a reduction in competition could hurt the local community's chances of benefiting from the tender process. Bejdic mentioned that their decision came from doubts about the necessary grid connections and demand for electricity in West Australia. Flotation Energy's Carolyn Sanders echoed these concerns, saying delays in approvals acted as a deterrent for operating in Australia. Both companies complained about a lack of support from the WA government and insufficient collaboration between state and federal officials. They suggested that renewable projects get much less financial support compared to the oil and gas industries. The federal government recently canceled a similar project in Victoria due to regulatory problems. With elections approaching, some believe political uncertainty is affecting developers’ decisions regarding offshore wind farms. Despite the setbacks, WA Premier Roger Cook has expressed support for offshore wind, viewing it as important for the future. After years of effort, some industry experts are considering shifting their focus to other renewable energy projects.