Australia's first offshore wind farm could be ready in 2030 and power up to one million homes after being granted major project status.
The announcement on Thursday comes at a critical time in the 1.5 gigawatt project and for the nation as Australia tries to get back on track for 82 per cent renewable energy by 2030.
The federal status given to Flotation Energy's Seadragon project, located in the Gippsland Offshore Wind Zone, cuts red tape on approvals and makes financing more attractive to investors.
Flotation Energy Australia's head of operations Carolyn Sanders said the project will bring $6 billion of investment into the region.
"This forms part of an estimated $40 billion of proposed energy projects that are already creating employment opportunities and will ultimately lead to a construction boom and long-term operation and maintenance jobs," she said.
The company has been working with the community in Gippsland, Victoria, since 2019 to develop the project.
Ms Sanders said the Gippsland region has a wealth of renewable energy resources and a 50-year energy legacy to draw upon.
Situated adjacent to oil and gas platforms, the project is designed to replace coal-fired electricity generation.
Flotation Energy is a subsidiary of TEPCO Renewable Power, which is part of Japan's largest utility and one of the largest in the world.
Another project off the coast of Gippsland, the Star of the South offshore wind farm, was granted major project status last December and also aims to be Australia's first offshore wind project.
The Star of the South plans to supply up to 2.2GW of renewable energy to the national electricity market, contributing up to 20 per cent of Victoria's electricity.
Experts say world-class winds off Victoria's coast could support 13GW of capacity by 2050 – five times the state's current renewable energy generation.
