Star of the South 2.2 GW Offshore Wind Project Targets $8 Billion Economic Contribution and 6,000 Australian Jobs

Star of the South, Australia's most advanced offshore wind project, is proposed in Bass Strait off the Gippsland coast of Victoria and aims to generate up to 2.2 gigawatts of clean electricity, enough to power around 1.2 million homes. The project is led by Southerly Ten, a specialist offshore wind developer for Australia and New Zealand, with investment from Copenhagen Infrastructure Partners and Cbus Super, positioning it within a consortium that combines global offshore wind expertise with Australian institutional capital. Over its anticipated 30-year lifespan, Star of the South is expected to add $8 billion to the Australian economy and create up to 6,000 jobs, including hundreds of ongoing positions in the Gippsland region throughout operations.

 

Development Status and Regulatory Timeline

 

Star of the South is currently in the feasibility and development phase, having been granted an exclusive feasibility licence for a 586 square kilometre area within the Gippsland declared offshore wind zone in May 2024. Early feasibility studies were conducted between 2019 and 2024 under a previous Exploration Licence, with completed wind, marine environment and seabed studies confirming the location is technically suitable for offshore wind development. The project aims to begin generating electricity before 2030 to meet Victoria's offshore wind targets of 2 gigawatts by 2032, with construction contingent on completing all required approvals and securing final investment confirmation.

The regulatory pathway for the project is aligned with Australia's newly established offshore wind licensing framework, which created the legal foundation for projects of this scale to progress through feasibility into construction. The Gippsland declared offshore wind zone in which Star of the South is located was identified by the Australian government as a priority area for offshore wind development given its wind resource quality, proximity to existing transmission infrastructure and connection to energy-intensive industrial regions in Victoria. Demonstrating technical feasibility across wind, seabed and marine environment dimensions provides the evidence base needed to support subsequent environmental approvals and investment commitments.

 

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Supply Chain and Procurement Opportunities

 

The project's main procurement categories include offshore wind turbine generators, steel foundations, high-voltage submarine and terrestrial cables, medium-voltage submarine cables, offshore and onshore substations, and transportation, installation, construction and commissioning services. Each of these primary contract categories generates substantial downstream opportunities for Australian businesses with capabilities in plant hire, earthmoving, quarry products, structural concrete, steel fabrication, waste management, security systems, drone services, marine charter and wind turbine consumables. Local companies with relevant skills across the broader supply chain are encouraged to register interest, reflecting Southerly Ten's commitment to building local capacity and capability rather than relying entirely on established international supply chains.

The commitment to working with local suppliers and contractors reflects both a commercial strategy to manage costs and a deliberate social licence objective to ensure the Gippsland community shares economic benefits from the project. Building a regional supply chain for offshore wind also has strategic value beyond this project, as developing local capability creates the foundation for Australia to participate more broadly in the Asia Pacific offshore wind market as it expands. Southerly Ten has identified fostering strategic partnerships and collaborations to drive local supply chain growth as an explicit development priority.

 

Community Engagement and First Nations Recognition

 

Southerly Ten recognises the Gunaikurnai peoples as Traditional Custodians of the lands and waters where the project is proposed and acknowledges their continued connection to Country. The project framework includes a commitment to sharing economic benefits with the region's Traditional Custodians and communities alongside the broader Gippsland population. This approach to First Nations engagement reflects evolving expectations in Australian project development for meaningful consultation and benefit sharing arrangements that go beyond acknowledgement to substantive economic participation.

The integration of community and Traditional Custodian engagement into the project's development framework from an early stage reflects an understanding that social licence is as important as regulatory approval for large-scale infrastructure projects in Australia. Offshore wind development in Bass Strait will affect fishing communities, coastal users and regional ecosystems, making credible and ongoing stakeholder engagement essential for maintaining the community relationships needed to sustain a 30-year operating project. Southerly Ten's explicit commitment to involving local people and businesses across development, construction and operation phases creates a framework for structured community participation throughout the project lifecycle.

 

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Outlook for Australian Offshore Wind Development

 

Star of the South's progress reflects Australia's accelerating offshore wind ambitions, with the federal government having established the legislative and regulatory framework needed to support project development and Victoria setting specific capacity targets that create clear market demand signals. As the most advanced project in the Australian offshore wind pipeline, Star of the South will establish important precedents for environmental approvals, community engagement, supply chain development and project finance structures that will influence subsequent projects across the country. The involvement of Copenhagen Infrastructure Partners, which manages some of the world's largest offshore wind infrastructure funds, brings a depth of international project development and financing expertise that strengthens the project's credibility with regulators, lenders and equipment suppliers.

Whether Star of the South can meet its pre-2030 generation target will depend on the pace of environmental approvals, transmission connection arrangements and the development of the financing package needed to support what will be a multi-billion-dollar construction programme. Sustained progress would deliver a landmark milestone for Australian renewable energy and establish Gippsland as a centre for offshore wind operations and supply chain activity. The project's potential contribution of $8 billion to the Australian economy over 30 years positions it as one of the most significant regional economic development initiatives in Victoria's recent history.