Equinor Withdraws From Australia's Bass Offshore Wind Energy Project

Equinor ASA EQNR, a Norwegian integrated energy company, has withdrawn from the third offshore wind project in Australia, as the company continues to scale back its investment in renewable energy projects. This comes as a major setback to the government’s plans for setting up an offshore wind industry in Australia.

In early 2025, EQNR quietly exited the Bass Offshore Wind Energy (BOWE) project in Australia. The company had held a majority stake in the BOWE project since December 2022, when it entered into a collaboration with the Australian firm Nexsphere. With Equinor revoking its support, Nexsphere has assumed full ownership of the project. The company intends to proceed with the BOWE project and has stated that it will work with international offshore wind partners.

This is the third offshore wind development project that Equinor has withdrawn from in Australia. In the past year, Equinor has also canceled certain offshore wind projects in Spain and Portugal. This raises concerns regarding Equinor’s involvement in the Novocastrian wind farm off the coast of Newcastle in New South Wales. It is the only remaining wind project in Australia that EQNR is part of.

Over the past year, Equinor has scaled back its investment in several clean energy projects, shifting its focus back to traditional fossil fuels in an effort to increase shareholder returns. The offshore wind industry globally has faced several challenges in recent months, including supply chain issues, regulatory setbacks, inflation and high interest rates, which have resulted in rising costs for offshore wind developers.

The BOWE project, located near the coast of Tasmania in Australia, is anticipated to have approximately 70-100 wind turbines, with a capacity to generate up to 1,500 megawatts (MW) of renewable energy. In April, the BOWE project failed to obtain a feasibility license, the first regulatory permit required for developing any offshore energy infrastructure in Australia. The permit allows the holder to conduct feasibility studies to evaluate the commercial viability of an offshore renewable energy project.

EQNR’s Zacks Rank & Key Picks

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

Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, Subsea7 S.A. SUBCY and Oceaneering International OII. While both Flotek Industries and Subsea7 sport a Zacks Rank #1 (Strong Buy) at present, Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

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This article originally published on Zacks Investment Research (zacks.com).

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