The historic tiny village of Port Albert has achieved international status since a private company announced a proposed offshore wind farm, offshore in Bass Strait.
Port Albert was one of the shipping immigration points into Gippsland in the 19th century and these days has a resident population of about 250 people.
The announcement last month of offshore electricity generation was expected to power most of the private households in Melbourne; or 18 per cent of households across Victoria.
It would also utilise existing energy infrastructure in the Latrobe Valley.
However, it would be at least 13 years before construction was complete, if the proposed project goes ahead.
South Gippsland Shire Council was waiting to be briefed on the project, of 250 wind turbines offshore southeast from Port Albert, generating 2000 megawatts.
With the title, ‘Star of the South Energy Project’, the proponents are Offshore Energy Pty Ltd, with links to the onshore wind farm at Waubra in Victoria’s western district.
Offshore Energy was established in 2012 to investigate the potential for renewable energy projects offshore Australia. It is currently looking for investment partners for the ‘Star of the South Energy Project’.
Offshore Energy’s managing director, Andy Evans, played with St Kilda AFL club for three years and his corporate profile includes not-for-profit disability advocacy and legal services in the technology and resources industries. Mr Evans described Gippsland as ideal for the offshore wind farm project.
“Gippsland is a very windy area and you magnify that when you go out to sea,” Mr Evans said.
“It blows hard and it blows constantly. If the wind farm was built now it would be the largest offshore wind farm in the world.”
Offshore Energy Pty Ltd has scoped a feasibility study process, including community consultation, to take at least three years. If the project was considered viable and sufficient capital was raised, a 10-year construction phase would follow.
Mr Andy said the energy infrastructure already in the Latrobe Valley – of undersea and underground transmission cables – lent itself to supporting offshore wind farm energy generation. A local population skilled in offshore (fly-in, fly-out) work in the resources sector would support construction – at least 50 per cent of the 12,000-strong workforce would be local employees.
It was figures like this that excited the Victorian government, which has seen mass job losses this year from the closure of Hazelwood Power Station in the Latrobe Valley and the likely closure of Heyfield’s sawmill operated by Australian Sustainable Hardwoods.
The Victorian and Commonwealth governments have assisted Offshore Energy to to progress the proposal to a formal feasibility assessment.
“If successful, the project will generate investment of around $8 billion, create 12,000 jobs during the construction phase and 300 ongoing operational and maintenance jobs,” said Minister for Energy, Environment and Climate Change, Lily D’Ambrosio.
The project would be located between 10 and 25 kilometres off the Gippsland coastline, in Bass Strait, and deliver 8000 gigawatts of electricity per year – servicing about 18 per cent of Victoria’s households.
Preliminary analysis of the proposed site, 10-25km off the Gippsland coast, showed high-capacity for reliable power generation, Minister D’Ambrosio said.
Offshore Energy has a memorandum of understanding with the Commonwealth and Victorian governments which, if the project received the appropriate rights from the Commonwealth Government to commence exploration activities, would assist with progressing the permitting process for this project.
“If the project goes ahead, it’s hoped the windfarm could be generating power in time to contribute to the government’s Renewable Energy Target of 40 per cent by 2025,” Minister D’Ambrosio said.
Offshore Energy estimated the windfarm’s contribution to the electricity grid would support 1,416,511 private dwellings per year. At the 2011 census, there were 1,494,672 private dwellings in Melbourne.
The company estimated reduction of 2,862,768 tonnes of carbon dioxide per year and 66,576 tonnes of sulphur dioxide per year.
Concerns about environmental and commercial impacts would be addressed during the feasibility study, including any effect on commercial and tourism fisheries out of Port Albert. It is a favoured offshore fishing destination for recreational anglers.
The Bald Hills Wind Farm in South Gippsland, an onshore wind 52-turbine facility, went ahead against community protests and was commissioned in 2015. Strategic planning documents focussed on Gippsland regularly refer to lack of community support for onshore wind energy facilities.
Local residents believed significant infrastructure changes would be needed to support the offshore construction of 250 wind turbines over 10 years – with concerns about housing, public amenity, roads and port facilities topping the list.
The Gippsland Regional Plan has long advocated for construction of a second deep water port in Gippsland – up to now the Port of Hastings was the preferred site.
There were air and heli-port facilities at nearby Sale that supported an existing fly-in, fly-out workforce in Gippsland; and a major helimed facility in the Latrobe Valley that already serviced on- and offshore medical and trauma evacuations.
However, ExxonMobil constructed the Barry Beach Marine Terminal, a privately owned port, to support maintenance of its 23 offshore oil and gas drilling platforms in Bass Strait. The terminal, near Port Welshpool (and not far from Port Albert), supports movement of supply vessels – moving approximately 70,000 tonnes of cargo per year – and the 300 people who service those platforms.
“A project of the size and significance of Star of the South has a large number and diversity of important stakeholders and we recognise the importance of early and sincere consultation,” Offshore Energy’s Mr Evans said.
He said the project could play a major role in transitioning the Gippsland economy, place downward pressure on wholesale electricity prices and improve power system security and reliability.
“Our project provides an opportunity for Australia to meet a number of energy security, economic and environmental objectives and, importantly, creates large and sustainable opportunities for the local community,” Mr Evans said.
The Star of the South Energy Project was named after a 19th century passenger ship that travelled from Britain to the region.
