On Thursday, the Australian government reportedly granted Equinor ASA (NYSE:EQNR) and Oceanex Energy a license to assess the feasibility of constructing a wind farm in waters off the country's east coast.
The feasibility license permits developers to conduct environmental assessments and geotechnical surveys, reported Reuters.
Energy Minister Chris Bowen announced that the proposed Novocastrian Wind project, located more than 20 km offshore Newcastle in New South Wales, could potentially generate over 2 gigawatts (GW) of electricity, sufficient to power 1.2 million homes, per the report.
Bowen added that if feasibility is confirmed, Oceanex, in partnership with Equinor, will be eligible to apply for a commercial license to develop the offshore wind project.
The decision was made a day after the opposition Coalition proposed on Wednesday to build seven nuclear plants by 2050 to replace coal-fired power, despite Australia's current ban on nuclear power.
Prime Minister Anthony Albanese criticized the policy, describing it as "a recipe for an economic catastrophe" that would increase costs for taxpayers.
Albanese has been focusing on expanding renewable energy projects to achieve its goal of reaching net zero emissions by 2050 and phasing out coal-fired power.
The government aims for 82% of the power supply to be sourced from renewables by 2030, but currently, the figure stands at about 40%. This is despite committing over A$40 billion ($26.7 billion) to support new wind, solar, and battery projects through underwriting, the report further added.
Also Read: Equinor Executes Offtake Agreement For Empire Wind 1: Details
Investors can gain exposure to the stock via Macquarie ETF Trust Macquarie Energy Transition ETF (NYSE:PWER) and Pacer Developed Markets International Cash Cows 100 ETF (BATS:ICOW).
Price Action: EQNR shares are up 0.78% at $27.26 premarket at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.