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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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  Darren Chester reflects on Gippsland Christmas, mourning Bondi Beach victims, appreciating essential workers, and urging unity, gratitude, and hope while wishing everyone a safe, happy, and prosperous New Year.
• Danny O'Brien seeks explanation for South Gippsland entering fire danger period earlier than neighbouring regions
  Danny O'Brien has urged the Emergency Services Minister to explain why South Gippsland entered the Fire Danger Period early, leaving farmers concerned about limited time for essential burn-offs and cleanup.
• Join the conversation and help shape South Gippsland and other council projects, programs and initiatives
  Join the conversation this spring! Share your ideas on South Gippsland's future through community consultations, including Pre-Prep, Draft Plans, Governance Rules, and the 2026/27 Budget.
• Entries close for Darren Chester's 14th #lovegippsland Calendar showcasing iconic scenes across Gippsland
  Entries have closed for Darren Chester's 14th #lovegippsland Calendar, with 344 stunning photos submitted capturing Gippsland's iconic landscapes. Winners will feature in the free 2026 calendar, distributed later this year.
• Two weeks left to join Darren Chester's 2026 #lovegippsland Calendar Competition celebrating iconic Gippsland
  Two weeks remain to enter Darren Chester's 2026 #lovegippsland calendar competition, celebrating Gippsland's landscapes and talent. Entries close October 3, with winners featured among 30,000 distributed calendars showcasing 'Iconic Gippsland'.
• Danny O'Brien warns Bayside Health merger threatens Gippsland communities, confirming hidden health service consolidation
  Danny O'Brien criticises Labor's Bayside Health merger, warning it will reduce local hospital autonomy, limit community input, and risk services for Gippsland residents, prioritising bureaucratic cost-saving over patient care.
• Darren Chester congratulates Infusa Distillery founders for showcasing Gippsland's produce, driving growth in local food and beverage industry
  Darren Chester congratulated Infusa Distillery founders Stu and Jo Taylor for their award-winning spirits, local partnerships, and contribution to Gippsland's food and beverage industry, praising their innovation, growth, and regional pride.
• Inverloch dairy farmer Mick Hughes highlights community collaboration survive South Gippsland's dry season challenges
  Inverloch dairy farmer Mick Hughes credits collaboration with the Inverloch Cluster and local water authorities for navigating South Gippsland's recurring dry conditions and improving farm drought resilience.
• Martin Cameron says Yallourn job cuts devastate workers and mark first blow in Power Station closure
  Up to 40 Yallourn Power Station jobs will be cut by 2025, sparking concern from Martin Cameron over Labor's failure to support the Latrobe Valley through the energy transition.
• Tim Bull slammed labor for $13M machete amnesty waste, penalising Gippslanders while failing to target urban crime effectively
  Gippsland East MP Tim Bull criticized Labor's $13 million machete amnesty, calling it wasteful, ineffective, and unfairly punishing rural Victorians while targeting areas with no machete problem.
• Omeo gains new modular worker accommodation, supporting healthcare staff and strengthening regional community
  Omeo District Health's new modular worker accommodation is underway, providing housing for healthcare staff, supporting regional jobs, and helping the town attract and retain doctors, nurses, and essential workers.
• Melina Bath slams Agriculture Minister Ros Spence for ignoring Gippsland farmers' struggles under Labor's tax regime
  Melina Bath criticised Agriculture Minister Ros Spence for refusing to advocate for Gippsland farmers, citing VFF survey results showing overwhelming concern over new taxes and Labor's disregard for regional agriculture.
• Southern Rural Water upgrades over meters across Gippsland to improve accuracy and fair water management
  Southern Rural Water is replacing 1,000+ outdated meters across southern Victoria by 2026, boosting accuracy, compliance, and fair water management under national standards - with no cost to customers.
• Tim Bull urges state government to fund Surf Life Saving, preventing East Gippsland ratepayers covering government shortfalls
  Gippsland East MP Tim Bull urges state government to fund Surf Life Saving Victoria, warning councils face doubled contributions while new Emergency Services levy strains East Gippsland and Wellington budgets.
• Darren Chester congratulates Hillywood Tree Nursery on expanding Gippsland-grown business with new online store
  Hillywood Tree Nursery in Briagolong has launched an online store, expanding access to Gippsland-grown plants. Darren Chester praised owner Ed Mosley for fostering innovation, sustainability, and local job growth in horticulture.
• Danny O’Brien condemns sudden AKD Yarram timber mill closure, 73 jobs lost, pledges support for affected community
  Gippsland South MP Danny O’Brien says sudden AKD Yarram timber mill closure, costing 73 jobs, devastates the community, pledging support for affected families, workers, and local businesses during this crisis.
• Have Your Say on Wonthaggi structure plan review aiming to guide growth, community needs and opportunities
  Bass Coast Shire Council is reviewing the Wonthaggi Structure Plan. Have your say on the town's growth, housing, jobs, heritage, and future opportunities to help shape Wonthaggi as Bass Coast regional hub.
• Danny O'Brien announces finalised Loch Sport groyne designs, Gippsland Ports to seek tenders before Christmas
  Erosion works on Loch Sport foreshore will begin next year, with designs finalised for new groynes. Danny O'Brien praised the community's persistence and vowed to push for further coastal protection.
• Danny O'Brien slams Labor's repeated 'Better Roads Blitz' claims as Gippsland roads continue crumbling
  Nationals MP Danny O'Brien has slammed Labor's latest "Better Roads Blitz," saying Gippsland roads remain neglected, unsafe, and underfunded, with locals enduring potholes, hazards, and long-term speed reductions instead of real maintenance.
• Cr Nathan Hersey elected as Mayor and Cr Brad Snell as Deputy Mayor for South Gippsland and other council updates
  Councillor Nathan Hersey was elected Mayor and Councillor Brad Snell Deputy Mayor of South Gippsland Shire for 12 months, marking Hersey’s second and Snell’s first term in these roles.
• Darren Chester commends Mac Waste Group for community commitment and support for Gippsland families
  Darren Chester praised Mac Waste Group for its community commitment, local job creation, youth training initiatives, and support for Gippsland families through its partnership with the Little Jem Foundation and fundraising efforts.
• Darren Chester applauds Metung Primary Footy Colours Day, showcasing student enthusiasm and schools' vital role in regional life
  Darren Chester joined Tim Bull at Metung Primary Footy Colours Day, praising student enthusiasm, community spirit, and schools' vital role in fostering connections, participation, and regional community life through fun events