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Opportunities and challenges for regional development and job creation with Gippsland offshore wind industry

Gippsland offshore wind industry will maximise benefits and address challenges for regional development and policy.

By news@gippsland - 2nd August 2023 - Back to News

Gippsland can benefit from the coming energy transition including from offshore wind and hydrogen developments, but only if the right policy settings are in place. The Nationals Member for Gippsland South, Danny O'Brien has outlined a suite of recommendations to ensure that coming changes in the energy sector, especially with respect to offshore wind, actually provide some benefits to Gippsland.

The Nationals Member for Gippsland South, Danny O'Brien, says policy settings must be right for Gippsland to benefit from offshore wind developments

Offshore wind potential

Mr O'Brien has included the recommendations in a report to Parliament after undertaking recent travel to Europe to better understand the offshore wind industry. "Whether we like it or not, it appears there is going to be a significant offshore wind industry off the Gippsland Coast, but there is a risk that the benefits of these developments could pass us by and Gippsland only experiences the negatives like transmission lines."

"Having seen how the offshore wind industry operates in the UK and Denmark, I am optimistic that there are offshore job opportunities for our region, but only if the government gets policy right. This is a port-based industry, and the state government must encourage the development of Barry Beach Marine Terminal in South Gippsland to be used as both an operations and maintenance base and potentially for construction activity if we are to reap the benefits."

"Without utilising a local port, we will see the activity happening off our coast but will reap very few jobs or economic outcomes from the offshore wind sector. The fact the state government has chosen to invest in a new port at Hastings suggests it doesn't understand how Gippsland could miss out," Mr O'Brien said.

Offshore wind recommendations

Other recommendations in Mr O'Brien's report include that state and federal government should actively pursue offshore wind component manufacturing facilities, that fishing and other marine users must be genuinely considered and a seabed HV/DC cable connection to the electricity grid should be investigated.

"There is significant concern from local land holders who would be impacted by a new transmission line through Gippsland. I understand the cost and technical challenges with going underground, but a seabed cable around Wilsons Prom and into Melbourne may well be an option and I urge the state government and developers to investigate it," he said.

Mr O'Brien is also backing the development of a Gippsland hydrogen and carbon capture and storage industry as well as improved outcomes from the creation of a pit lake in Latrobe Valley coal mines. His report has been presented to Parliament this week.

Mr O'Brien's recommendations

Recommendations from Mr O'Brien's report to Parliament:

Barry Beach Marine Terminal

Barry Beach Marine Terminal must be supported to become an operations and maintenance (O&M) base for the Gippsland offshore wind industry.

Barry Beach is operated by the private sector. Government should assist with provision of supporting infrastructure including telecommunications, roads, workforce training and housing availability in the area. As the only suitable port in the Gippsland area for OSW, if Barry Beach does not play a major role, there will be little benefit for Gippsland from the OSW sector.

State government to review decision

The state government should review its decision to not consider Barry Beach for OSW construction activity. Development of Barry Beach can occur without significant taxpayer investment, is closer to the OSW zone and can ensure Gippsland captures benefits.

While it does require significant dredging, there are dredging and other development and environmental requirements at Hastings that mean that, at the very least, both ports should be considered. The Victorian government must also justify the decision to focus on Hastings alone, reveal the full cost to taxpayers of new port development and outline a timeline for preparing ports for OSW projects that will align with developer construction schedules.

OSW manufacturing opportunities

State and federal governments should actively pursue OSW manufacturing opportunities. It would be too easy to say "we can't get them here". The jobs and economic benefits of OSW will be limited if turbines are all imported and installed by overseas ships with international crews.

The big three original equipment manufacturers (OEM) in wind: Siemens Gamesa, Vestas and GE, should have a long-term pipeline of projects in Australia and the Asia-Pacific to make Gippsland, Victoria and Australia an attractive proposition for manufacturing facilities.

Considerate marine consultation

Fishing and other marine users must be genuinely considered, consulted and compensated (where relevant). The commercial fishing industry must be consulted early in the development of OSW wind and OSWFs sited to minimise disruption to fishing grounds and other marine users such as oil and gas. Compensation must be paid if other commercial activities are impacted and the federal government should enforce this if necessary.

Regulatory guidance on fishing access

The federal government should provide clear legislative or regulatory guidance on fishing access (commercial and recreational) within wind farms.

Seabed HVDC Investigation

The state government should investigate whether seabed HVDC cable connection to the electricity grid for Gippsland OSW is feasible. VicGrid has been given the role of coordinating transmission lines to minimise a "spaghetti effect" of cables.

It should investigate whether it is feasible to establish an offshore connection point and seabed HVDC cable through Bass Strait into Melbourne, rather than across Gippsland farmland.

Coordinated community engagement

Federal, state and local governments should assist the coordination of community engagement on OSW in Gippsland. There is a lot of activity in energy both onshore and offshore in Gippsland, particularly in the Wellington and South Gippsland shires.

Once feasibility licences have been awarded for Gippsland OSWFs, governments should work with local councils and developers to help coordinate community engagement, to avoid consultation fatigue from multiple developers holding repeat consultation sessions on virtually the same issues.

Longford heliport collaboration

Developers should work with Esso in the longer term to consider whether the Longford heliport could be used for crew transport to service operations vessels (SOVs) for OSWFs.

While this is a commercial decision for the companies involved, such a move would be a genuine and symbolic move to aid the transition from current energy production to future energy production.

Supporting hydrogen industry

The state government must back the Hydrogen Energy Supply Chain (HESC) project to stimulate the hydrogen industry in Gippsland. The HESC project will ultimately proceed only on commercial terms, but the state government must ensure it does not frustrate the project for political reasons.

While all planning and environmental approvals would of course need to run their course, the government must ignore green hysteria over coal and back this project. HESC has strong potential to give Gippsland the skills, technical knowledge, infrastructure and industry base for a future green hydrogen industry.

It is feasible in decades to come that OSW, when not needed in the grid, could power green hydrogen production for industrial, domestic and power generation purposes. The attendant carbon capture and storage (CCS) project would also offer additional opportunities for new Gippsland industries.

Biomass power conversion

The state government should back any proposal to convert existing brown coal power stations, which would otherwise close, to biomass. The Drax experience shows conversion to renewable biomass is eminently feasible for Latrobe Valley power stations. Logistics changes such as port works and rail lines will be necessary.

A biomass conversion of an existing coal fired power station would maintain and expand Gippsland jobs and, crucially, provide base load power to the grid to help manage the intermittency of wind and solar.

Comprehensive pit lake objectives

The state government must set objectives for Latrobe Valley mine rehabilitation beyond just achieving a "safe, stable and sustainable" landform to include long-term benefits from pit lakes such as agricultural, horticultural, industrial, tourism and residential developments.

Pictures from Danny O'Brien MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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  Latrobe City Council has urged Victorian leaders to back jobs, housing, investment, community safety, energy transition projects and infrastructure to strengthen long-term regional economic growth.
• New Heart Morass watering infrastructure strengthens Gippsland Lakes wetland health and protects freshwater flows for future generations
  New watering infrastructure at Heart Morass enables controlled freshwater flows, reducing salinity and supporting wetland health, wildlife habitat and long-term resilience across the Gippsland Lakes.
• Darren Chester blames Labor-Greens timber shutdown as Maryvale Mill job losses hit Gippsland workers and families
  Federal MP Darren Chester says 84 more Maryvale Mill job losses stem from Labor-Greens forestry policies, urging state and federal governments to fund an economic transition plan for the Latrobe Valley.
• The Nationals pledge weekly rubbish collection for Gippsland households to ease costs and improve waste services
  The Nationals have pledged weekly general rubbish collections across Gippsland, promising to review landfill levies and waste charges to reduce costs and ease pressure on families.
• The Nationals call for urgent public housing repairs as 147 Gippsland South properties remain vacant amid growing housing crisis
  The Nationals MP Danny O'Brien is calling for urgent repairs to 147 vacant public housing properties across Gippsland South, saying homes should be occupied amid the region's housing crisis.
• Walhalla Museum launches virtual reality experience bringing gold mining history to life for visitors through new Regional Tourism upgrade project
  Walhalla Museum has launched a $50,000-funded virtual reality experience showcasing its gold mining history, with multilingual and accessible visitor facilities supported through the Victorian government's Tiny Towns Fund.
• Darren Chester releases 2026 Age Pension Guide to help older Gippslanders navigate retirement support and services
  Federal Member for Gippsland Darren Chester has released his 2026 Age Pension Guide, providing older Gippslanders, pensioners, carers and families with information about pensions, concessions, aged care and government services.
• Darren Chester joins Annabel Crabb for locally sourced Gippsland feast on ABC's Kitchen Cabinet series
  Darren Chester will feature on ABC's Kitchen Cabinet with Annabel Crabb, showcasing Gippsland produce and locally sourced food when the episode airs August 25.
• Baw Baw Employment Expo returns this September to connect job seekers with local employers and training providers
  Baw Baw Employment Expo returns September 30, connecting job seekers with local employers, vacancies and training providers. The free event also offers resume support, networking opportunities, industry insights, coffee vouchers and lunch.
• Mobile Service Centres bringing government support across South Gippsland communities an August and September
  Australian government Mobile Service Centres will visit 12 South Gippsland communities, offering Medicare, Centrelink, myGov and Veterans’ Affairs assistance, with accessible facilities and Wi-Fi.
• Bass Coast Shire Council traineeships open pathways to local careers and opportunities
  Bass Coast Council’s 2026 traineeship program supports seven trainees with practical experience, qualifications and career pathways. Applications for 2027 are expected early next year, with opportunities showcased at Phillip Island September expo.
• Darren Chester says growers and industry groups are concerned Labor's visa processing pause is creating uncertainty for farmers
  Australian farmers warn delayed visa processing for seasonal and skilled workers could worsen labour shortages, disrupt harvests, reduce food production and push fresh produce prices higher for Australian families.
• Moondarra Reservoir gains new pathway and native garden beds, enhancing recreation, accessibility and Aboriginal cultural connections
  Gippsland Water has completed a new pathway and native garden beds at Moondarra Reservoir, improving visitor access, enhancing recreation and incorporating local flora, Aboriginal cultural information and community collaboration.
• Flight test command centre opens, strengthening Latrobe's role in Australia's advanced aviation innovation sector and creating new opportunities
  Latrobe's new Flight Test Range Command Centre has opened at Latrobe Regional Airport, supporting advanced aviation research, drone technology, investment, manufacturing growth and skilled jobs across the region.
• New Flight Test Command Centre opens at Latrobe Airport, boosting advanced aviation jobs, investment and innovation
  A new Flight Test Range Command Centre at Latrobe Regional Airport has opened, supporting advanced aviation research, attracting investment, strengthening local businesses and creating new jobs across Gippsland.
• Cann River Cafe creates local employment pathways through community training and youth opportunities
  Cann River has opened Fern & Feather Cafe, a community-owned training initiative providing hospitality skills, employment pathways, youth opportunities and funding for local community programs.
• The Nationals blame Labor government after 84 more jobs cut at Maryvale paper mill in Latrobe Valley
  Nationals MP Martin Cameron blamed the Victorian Labor government after Opal announced 84 job cuts at Maryvale, arguing forestry policy and timber supply failures caused ongoing workforce losses.
• Latrobe Council urges Premier Carroll to fast-track investment, industry growth and secure future jobs in Valley
  Latrobe City Council has urged newly appointed Premier Ben Carroll to meet urgently on economic diversification, investment and job creation as the region faces energy transition, manufacturing job losses and Yallourn 2028 closure.
• Latrobe City Business Festival returns with free October events connecting businesses, employers, job seekers and industry partners
  Latrobe City’s 2026 Business Festival runs October 14–23, offering free jobs expos, workshops, networking, professional development and business events connecting employers, workers, students and industry.
• Martin Cameron seeks government answers over delays threatening Latrobe Magnesium's commercial project and regional investment
  Martin Cameron is pressing the Victorian government over delays affecting Latrobe Magnesium’s commercial project, warning investment and hundreds of Latrobe Valley jobs could be lost.
• Melina Bath accuses Labor of failing to curb illicit tobacco crime and escalating violence across regional Victoria
  The Nationals have criticised Labor over ongoing illicit tobacco crime, citing alleged abductions, violence, intimidation and suspected illegal stores, while questioning Victoria’s tobacco licensing scheme effectiveness.
• Martin Cameron renews call for PSOs at Morwell and Moe Stations, citing rising Gippsland public transport crime figures
  Morwell MP Martin Cameron has renewed calls for PSOs at Morwell and Moe stations, citing a 49 percent increase in Gippsland public transport crime between 2021 and 2024.
• Parliamentary inquiry reveals CFA resource shortfalls after years of Labor neglect, leaving Gippsland communities increasingly vulnerable
  A Parliamentary inquiry has highlighted declining CFA volunteer numbers, ageing firefighting vehicles, workforce shortages and poor fuel management, prompting Nationals' Danny O'Brien to demand urgent action to protect Gippsland communities.
• Upgraded Traralgon Indoor Stadium welcomes more community sport and elite events with $6M investment
  A $6 million upgrade to Traralgon Gippsland Regional Indoor Sports Stadium delivers improved facilities, creates local jobs, and positions the venue to attract more elite sporting events and community participation.
• New drinking fountains improve free water access across Sale's popular recreation facilities
  Sale's major recreation facilities now offer improved free drinking water access, with new fountains at Aqua Energy, Port of Sale and Gippsland Regional Sports Complex, supporting hydration and reusable bottle use.
• Danny O'Brien says Nationals' Bill will strengthen agricultural land protections, safeguard and recognise Gippsland farms as strategic asset
  The Nationals' agricultural land Bill would strengthen protections for Gippsland farms, recognise agriculture as a strategic asset, require impact assessments and consultation, and ensure food security is considered before major developments.
• Become a Great Southern rail trail passport collection point with other updates from the South Gippsland Shire Council
  South Gippsland Council seeks Rail Trail Passport collection points, announces a youth bravery award, Toora roadworks, grants, community events, transport updates, tenders, services and opportunities.
• Councils begin planning for renewable energy growth across Wellington and South Gippsland communities
  Wellington and South Gippsland councils have begun a major renewable energy planning project, backed by $4.7 million, to prepare communities for future growth through housing, infrastructure, employment, services and economic development.
• Darren Chester demands urgent Labor investment to fix dangerous Princes Highway and Gippsland arterial roads
  Darren Chester urged Labor governments to urgently fund Gippsland roads, citing dangerous conditions, poor maintenance and reduced investment while highlighting previous Coalition funding for highway and arterial road upgrades.
• Darren Chester congratulates Maffra student Jaxon Marshall on National Youth Parliament selection representing Gippsland in Canberra
  Maffra Secondary College student Jaxon Marshall will represent Gippsland at the 2026 National Youth Parliament, earning praise from Darren Chester for bringing regional and agricultural perspectives to Canberra.