Two major offshore wind companies have pulled out of Australian projects, raising doubts about the industry's future without federal government support.

BlueFloat Energy, backed by US investors, has withdrawn its interest in the proposed Gippsland offshore wind project. The decision also impacts a planned offshore wind farm in the Illawarra region in New South Wales.  

This follows Norwegian energy giant Equinor's decision earlier this year not to proceed with the Bass Strait project — off the north coast of Tasmania — casting doubt over its future plans in Australia.

So, why are offshore wind companies walking away from Australia?

• Guest: Bruce Mountain, Director, Victoria Energy Policy Centre 
• Producer: Eddy Diamond