Asset Energy wants Newcastle offshore gas permit PEP-11 back as Australian federal government looks at offshore wind pontoons

A spokesperson for the Department of Industry, Science, Energy and Resources said on Friday that it would be "inappropriate to comment" as "the matter is before the courts" - a reference to a challenge that Asset Energy lodged in the Federal Court on June 1 alleging "bias" by the Morrison government in refusing to renew the PEP-11 permit.

The Labor government's Climate Change Bill passed the House of Representatives last week. Once through the Senate, it will be the pathway to ensuring 2030 greenhouse gas emissions are 43 per cent less than in 2005, or about 27 per cent down on last year.

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Asked how Australia could justify new gas exploration or production in the light of this legislation, Mr Breeze said yesterday: "Each proposed energy project should be judged on its own merits.

"Our project can help Australia on its transition to a cleaner energy future and should not be arbitrarily dismissed because of protesters who completely ignore household energy needs and our national interests."

Friday's announcement of the Hunter coast as a potential site for floating offshore wind turbines means the ocean off Newcastle may be the site of considerable industrial activity, even without PEP-11.

"Clean natural gas has long been recognised as the key ingredient in the transition to a cleaner energy future," Mr Breeze said.

"It is 50 per cent lower in carbon intensity than coal and will assist in lowering Australia's carbon emissions, so it is a win-win for government to support projects like PEP-11 in its bid to reduce emissions, while keeping the power on."

Asset Energy fact sheets say it hopes to tow a drilling rig to the "Seablue 1" test site, 25 kilometres from the coast and 30 kilometres south-east of Newcastle.

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