Do we have the port infrastructure to support offshore wind development?
August 15, 2024
Offshore wind is emerging as a key part of our renewable energy strategy. But are ports equipped to support this new industry?
Offshore wind is a key strategy to meet the world¡¯s renewable energy targets. But there are several challenges associated with offshore wind development. One of those challenges has to do with our port infrastructure. This is especially true for offshore wind in Australia, where we live. The country¡¯s ports are facing a critical test. These vital gateways are not equipped to handle the massive turbines and specialised vessels required for offshore wind projects. This poses a significant barrier to the sector¡¯s growth.
So, let¡¯s review the challenges that our ports must overcome to unlock the full potential of offshore wind¡ªwhether in Australia or around the world. After all, the energy transition may depend on it.
Gaining momentum for offshore wind in Australia
Australia is primed to be a leader in offshore wind energy. With more than 30,000 kilometres of coastline, there¡¯s huge potential for offshore wind in Australia to provide reliable and affordable energy. Even better, offshore wind development can help create economic opportunities and jobs in the region. Chris Bowen, Australia¡¯s Minister for Climate Change and Energy, has already declared numerous areas suitable for offshore wind. These include the Bass Strait in Tasmania, New South Wales¡¯ Hunter region, and a stretch of ocean off the coast of Bunbury, Western Australia. However, this is just the first step in a multiyear process that involves rigorous licensing, approvals, and environmental compliance. And that¡¯s before construction can even begin.?
Port of Melbourne in Victoria, close to Gippsland and Bass Strait declared renewable energy zones.
Fortunately, engineering firms in Australia and around the world are committed to supporting renewable energy projects. Many are expanding their workforce and upskilling their teams to support these endeavours. Guiding offshore wind projects from proposal through to construction and grid connection will be a critical focus in the coming years. Having facilitated more than 40 offshore wind projects in countries such as the US and the UK, our teams are ready to help power the growth of Australia¡¯s burgeoning offshore wind industry.
Overcoming infrastructure roadblocks to offshore wind
While the potential is great, Australia¡¯s ports face several key challenges to becoming offshore wind hubs. The biggest of these challenges? The limitations of the physical infrastructure.
The depth and width of port channels is crucial here. Why? For the safe and efficient transport of turbine components to their installation sites. These channels must also be able to accommodate the huge vessels required to construct offshore wind projects. On top of making them safe and navigable, they need to be resilient against siltation or sedimentation over time. Right now, many of Australia's ports and channels are neither deep nor wide enough to fit the bill.
There is also the challenge of storage. Our ports currently lack the storage facilities to store the size and volume of wind turbine components. In the US, an offshore wind facility might have access to more than 30 hectares of land. Most Australian ports do not have this kind of space. However, our team is leading conversations with organisations that already operate in and around Australia¡¯s ports. Hopefully, this will help to determine if their underutilised land may be repurposed to allow for this storage requirement¡ªan agreement that would be beneficial for both parties.
With 30,000 kilometres of coastline, Australia is set to become a leader in offshore wind energy. Image of Tasman Sea Coastline off the coast of Victoria, Australia.
Another key challenge lies in the cranage limitations of our ports. Why is that? The existing cranes are not strong enough in terms of weight-bearing capacity. So, we will need to upgrade many cranes to lift the turbine components. This can be challenging as some cranes can weigh up to 800 tonnes apiece.
Port owners, investors, and engineers must work together. Unitedly, we can drive the port development required to get the offshore wind industry off the ground in the region.
Tackling regulatory hurdles for offshore wind
It¡¯s not all about infrastructure limitations. The regulatory environment also threatens the success of offshore wind in Australia. As with any emerging sector, the way forward isn¡¯t always clear. The Australian Government has developed a framework for offshore wind generation in Commonwealth waters. But there are regulatory challenges that further complicate the development of port infrastructure for offshore wind projects.
A recent example is the port extension proposal in Victoria. This project¡¯s environmental ¡®referral¡¯ was submitted by the Victorian State government. And it was endorsed by Bowen. However, it was blocked by Tanya Plibersek, the Federal Minister for the Environment and Water, on environmental grounds.
This case illustrates the need for alignment between and within government departments. It will be critical to streamline the processes for moving these projects through the pipeline. The goal should be to achieve a balanced approach. It should put value on both environmental protection and recognising the strategic importance of renewable energy development.
Who foots the bill?
It¡¯s clear that securing investment will be crucial for upgrading Australia¡¯s port infrastructure. But there¡¯s much discussion around where the funding will come from. Will it come from the public or private sector? Many experts believe it will be a combined effort. This is also referred to as a public-private partnership. External investors are willing to contribute billions toward offshore wind in Australia. We see private equity firms actively pursuing opportunities. But we will also need federal funding in the form of grants and incentives.
Australia¡¯s ports face several key challenges to becoming offshore wind hubs. The biggest of these challenges? The limitations of the physical infrastructure.
A varied funding strategy likely will encourage more investment. But it should also help mitigate the risks associated with fluctuating investment and construction timelines. The goal should be to direct both public and private funds toward critical infrastructure projects in Australia¡¯s Renewable Energy Zones. This way, offshore wind projects can contribute to achieving renewable energy targets.
Upfront costs will be significant. But over the long term, offshore wind projects are not only commercially viable but also cost-effective. There are proven international models we can look to¡ªin Europe and the US in particular¡ªthat demonstrate an encouraging decline in the cost of energy. Right now, the cost of energy is high in Australia. But that is expected to decrease over time.
Looking forward
Despite the challenges our ports face, the outlook for offshore wind in Australia remains positive. After all, we¡¯re in the business of solving challenges. We¡¯re committed to helping our clients and communities transition to renewable energy. There will be significant costs to make it happen, but what is the cost if we don¡¯t? And are we willing to let future generations pay for it?
With the right investments and coordinated efforts from both the public and private sectors, the country is well on its way to unlocking the potential of offshore wind energy. This industry is crucial for meeting Australia¡¯s renewable energy targets. It will help provide cleaner, cheaper energy and create positive economic outcomes. And investing in this sector can help pave the way for a more sustainable, resilient energy landscape and help drive the energy transition forward.?