Following yesterday’s announcement that BlueFloat Energy will be withdrawing from its offshore wind projects in Taranaki, the region remains committed to the development of offshore wind energy.

Te Puna Umanga Venture Taranaki, the regional development agency, acknowledges BlueFloat Energy’s commercial decision to cease the development of its offshore wind portfolio in New Zealand. The agency is quick to recognise BlueFloat Energy’s pioneering efforts in the establishment of the industry alongside Taranaki-based Elemental Group and identifying the offshore wind potential for Taranaki and the nation.

Chief Executive of Venture Taranaki, Kelvin Wright, said, "BlueFloat Energy are to be commended for their contributions. They invested significantly in environmental assessments, feasibility studies, and community engagement, creating a strong foundation for future offshore wind development in Taranaki. Their leadership and presence will be missed."

However, the departure of the organisation could galvanize stakeholders in the region and nationwide, who remain committed to the opportunity of offshore wind.

Following BlueFloat Energy’s announcement, Taranaki Offshore Partnership announced an offshore wind joint venture between Copenhagen Infrastructure Partners and the New Zealand Super Fund to conduct New Zealand’s first offshore wind marine baseline study in the South Taranaki Bight.

"We’re fortunate to have other interested developers, like the Taranaki Offshore Partnership, who continue to invest in this region," Wright added. "As we navigate the complexities of building this new sector, we will keep pushing forward. A coordinated effort from all stakeholders is required to ensure that offshore wind in Taranaki has a future and becomes a reality."

"The withdrawal of BlueFloat Energy highlights several ongoing challenges within the offshore wind sector in New Zealand. These include competition for shallow seabed space, the absence of a clear regulatory regime, the need for revenue stabilisation mechanisms like Contracts for Difference (CFD), and the establishment of a viable national sector size. Additionally, there remains the challenge of securing demand-side contracts and addressing commercial viability. These issues require urgent and strategic attention from policymakers."

Wright continues, "Offshore wind will play a critical role in our renewable energy mix; however, the Government needs to provide clarity and create an attractive investment environment. We must work across sectors and political lines to ensure investment certainty."

Following a recent visit by a UK delegation in August, which announced its interest in supporting the establishment of an offshore wind industry in the region, Venture Taranaki has been invited to join a UK Government Offshore Wind Delegation in December. The delegation will bring together key stakeholders from New Zealand and Australia to share best practices with UK counterparts, leveraging the UK’s 20 years of experience in offshore wind development.

"This delegation provides a valuable opportunity to learn directly from one of the world’s leaders in offshore wind development. It’s a chance to engage with experts on everything from regulatory frameworks to social license, ensuring that Taranaki is well-positioned to lead New Zealand’s offshore wind future."

Anne Probert, Director of Strategic and Sector Partnerships at Venture Taranaki, highlights the global nature of the offshore wind industry, where international investors assess competitive markets for the best returns."The departure of BlueFloat Energy sends a signal that we need to ensure New Zealand remains an attractive destination for offshore wind developers. If we are serious about building a thriving offshore wind sector, and securing the benefits which could flow from it, we need to demonstrate leadership and foster a globally competitive investment environment," said Probert.