The federal government has decided to delay the assessment of a feasibility licence application for an offshore wind project in New South Wales’ Illawarra region until after the upcoming federal election. Energy Minister Chris Bowen explained that this postponement came in response to a request from BlueFloat Energy, a US-owned renewables company that applied for a licence back in August 2024. The company has expressed worries about moving forward without clear bipartisan backing, particularly given the political environment shaped by figures like Peter Dutton and Ted O'Brien.

Minister Bowen acknowledged the rationale behind the request, noting that proceeding with the licence could lead to a significant financial commitment for further feasibility work and consultation, a step the company is reluctant to take without some electoral certainty. The offshore wind area, originally defined by a 1,461 square kilometre zone, was later reduced to 1,022 square kilometres when the government officially declared it in June 2024, covering a stretch of coastline between Stanwell Park and Kiama. While public consultation on the project began in August 2023, BlueFloat remains the sole applicant in this part of the zone, which only represents a minor segment of the overall designated area.

Political opposition to the project has been evident, with several Coalition candidates vocally criticizing the proposal during their early campaign efforts. Opposition leader Peter Dutton and Nationals leader David Littleproud have both expressed strong reservations, with local residents reportedly supporting the delay. Littleproud, in particular, highlighted that the decision stemmed more from community pressure than from the government's proactive engagement with local concerns. Amid those voices of dissent, the government noted that other offshore wind projects, which have already been granted feasibility licences in different regions, are expected to generate significant job opportunities.