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Equinor Withdraws From Australian Offshore Wind Projects

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Key Takeaways

  • Equinor declined a license for the 2 GW Novocastrian Offshore Wind Farm in New South Wales.
  • The company also exited the Bass Offshore Wind Project, leaving Nexsphere as the sole owner.
  • Minister Chris Bowen said Oceanex and Nexsphere now seek new global investors to proceed.

Equinor ASA (EQNR - Free Report) has announced that it will not proceed with its planned offshore wind projects in Australia, marking a significant setback for the country’s emerging renewable energy sector, per media reports.

The decision affects the proposed Novocastrian Offshore Wind Farm, a 2 GW floating wind project off the Hunter coast of New South Wales, slated to begin construction in 2028 and commence operations in 2031. The venture, in partnership with Oceanex Energy, had been selected earlier this year by the Australian government to receive a feasibility license. However, energy minister Chris Bowen confirmed that Equinor declined the license after the two companies failed to agree on terms for the next phase.

No official reason was given for the decision, but it comes amid Equinor’s wider retreat from several offshore wind projects worldwide.In Australia alone, this is EQNR’s third withdrawal, following its recent exit from the Bass Offshore Wind Project near Tasmania, where its local partner, Nexsphere, has assumed full ownership.

The Novocastrian project was considered a frontrunner in advancing deep-water floating wind technology, and Oceanex remains keen to push forward despite financial hurdles. Minister Bowen expressed that both Oceanex and Nexsphere are now seeking new international investors to continue development.

Equinor’s decision comes at a time when broader offshore wind ambitions face mounting pressures. Rising costs, investment uncertainties, and shifting market conditions have affected projects globally, with companies such as Ørsted and Blue Float Energy recently shelving major projects in the UK and Australia.

Despite these challenges, the Australian government maintains that it is firmly committed to expanding renewable energy infrastructure. However, achieving national clean energy targets will be increasingly difficult if flagship offshore wind projects fail to progress beyond the feasibility stage.

EQNR’s Zacks Rank and Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) , Precision Drilling Corporation (PDS - Free Report) and Enbridge Inc. (ENB - Free Report) . While both Antero Midstream and Precision Drilling sport a Zacks Rank #1 (Strong Buy) at present, Enbridge carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Precision Drilling is an oilfield services company. It provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.

PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.

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