Norwegian energy giant Equinor has decided to pull out of the Novocastrian floating wind farm offshore New South Wales.

Equinor has already been granted a feasibility license from Australian authorities for the 2GW project but has decided not to go through with it.

The Novocastrian floating wind farm is the most advanced project of its kind in the state, and the predicted $10bn investment price tag makes Equinor’s move an even bigger hit to Australia’s offshore wind sector.

The project, located 20 kilometres off Newcastle and Port Stephens, was supposed to deploy floating wind turbines across a 500 sq km licence area.

The Novocastrian developers stated that the withdrawal was due to broader industry hurdles and goes hand in hand with Equinor’s previous move in the country, which was a withdrawal from a planned offshore wind farm in Bass Strait in July.

“We will continue to work with all to investigate how we can make offshore wind in the Hunter progress and create huge jobs and investment for the region. While we are not progressing with this feasibility licence, we believe Australia continues to have a significant role to play in the global energy transition,” they said in the statement.