Part of its strategy also includes long-term plans to diversify its retiring coal sites into hubs for lower-carbon energy sources spanning renewable energy generation, big batteries and green tech manufacturing.

Brokhof said the build-out of new infrastructure, skills and supply chains in Gippsland would be critical. “We hope to create a new era of innovation and new careers for the Gippsland region,” he said.

Loading

Another partner in the Gippsland Skies consortium, Direct Infrastructure, chaired by former Woodside Energy chief executive Peter Coleman, said the project brought together a significant track record of global offshore wind development with deep Australian energy industry expertise.

Coleman said the project would invest in regional and national supply chains and was exploring opportunities with local TAFE colleges and universities.

Gippsland, east of Melbourne, has long been central to Victoria’s energy generation as it is home to the state’s three remaining coal-fired power stations.

The area off the Gippsland coast is considered world-class for its untapped energy potential. The strong and consistent wind speeds and relatively shallow ocean areas less than 60 metres deep make it an ideal location to host large fixed-bottom offshore wind farms.

Proponents of offshore wind power say situating turbines way out at sea could reduce the risk of developments facing objections from nearby communities concerned about visual and environmental impacts.

Loading

Star of the South, a proposed 2.2-gigawatt wind farm off the Gippsland coast, whose backers include Copenhagen Infrastructure Partners (CIP) and Australian superannuation fund Cbus, is the most advanced Australian offshore wind farm plan.

On Wednesday, CIP unveiled a new company called Southerly Ten to oversee Star of the South, and another wind farm project off Gippsland, Kut-Wut Brataualung, both of which gained feasibility licences.

“These licences signal that Australia is open for business and open to the economic opportunities offshore wind can provide for our regional communities,” Southerly Ten chief executive Charles Rattray said.

“Offshore wind will play a vital role alongside other forms of generation in giving households and businesses the secure, reliable electricity they need and deserve.”

The Victorian government aims to source about two gigawatts – or 20 per cent of the state’s total power needs – from offshore wind by 2032, before doubling it to four gigawatts by 2035 and nine gigawatts by 2040.

Federal Climate Change and Energy Minister Chris Bowen said Australia’s nascent offshore wind industry presented a huge opportunity for regions such as Gippsland that had “powered our country for generations”.

“Australia’s first offshore wind zone has hit a new milestone, with reliable renewables and secure jobs a step closer for Gippsland,” Bowen said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.