The developer of the 2.1GW Gippsland Dawn offshore wind farm, BlueFloat Energy, has abandoned the project, set to be built in the Bass Strait off the coast of Australia.

The proposed $6.5bn (AUD 10bn) project was cancelled despite receiving major project status from the Australian government in November. Construction was supposed to begin in 2029, with the project set to be operational in 2031.

The offshore wind farm was supposed to consist of up to 140 bottom-fixed turbines situated 10 to 33km off the Gippsland coast, with the potential to power more than 1m homes.

BlueFloat’s decision came after major shareholder, Quantum Capital, decided that it was no longer commercially viable to invest in the sector.

This brings into question Australia’s renewable energy targets, as this is the second wind farm which was dropped in quick succession.

Equinor has recently cancelled its plans to build a wind farm off the coast of Tasmania. The Norwegian firm has also not yet committed to building its other Australian offshore wind farm, Novocastrian Wind, despite being offered a second extension to accept a feasibility license.

Nationally, Australia has a target of achieving 82% renewable energy by 2030. The federal government believes it is on track to meet its 2030 emissions reduction target. However, industry experts claim that the country is not on track.