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Elevate Magazine
October 25, 2024

BlueFloat Energy Withdraws from NZ Offshore Wind Projects

bluefloat energy withdraws from nz offshore wind projects

Offshore wind developer BlueFloat Energy has announced its withdrawal from New Zealand, attributing the decision to uncertainties surrounding seabed space allocation.

Nathan Turner, the company’s country manager, confirmed that this choice followed a strategic review, emphasising the challenges facing offshore wind projects in the region.

Project Overview

BlueFloat had proposed two fixed-seabed offshore wind projects: one in South Taranaki and another off the Waikato coast. Together, these projects were expected to generate approximately 1.7 gigawatts of peak electricity. However, the company faced hurdles, particularly due to the fast-tracked approval granted to Trans-Tasman Resources (TTR) for mining vanadium-rich iron sands in the same seabed area also targeted by several wind farm developers, including BlueFloat. 

Regulatory Challenges

This decision follows a complex legal history where TTR’s previous application was dismissed by the Supreme Court and sent back to the Environment Court for reassessment. However, the New Zealand Government’s fast-track legislation has expedited the process, allowing TTR to bypass the usual lengthy approvals. 

TTR has accused wind farm developers of encroaching on its existing property rights, arguing that their proposals overlap with areas where TTR holds mining permits. 

Turner noted that BlueFloat still sees potential in New Zealand’s offshore wind sector for decarbonisation and economic growth but highlighted key uncertainties regarding market access and seabed allocation as pivotal factors in their decision. 

He also encourages the New Zealand government to continue its efforts to create a supportive regulatory framework for offshore wind and assist the industry in navigating these uncertainties.