The Spinifex Offshore Wind Farm project has officially lodged an application for a feasibility licence for a site off Port Fairy - a crucial step for the proposed one gigawatt wind farm.
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The companies behind the $4 billion project now hope a licence will be awarded "as soon as possible".
A feasibility license would give the project the go-ahead to explore the viability or practicality of the proposed project within a designated area.
It is a requirement that also allows projects to conduct further research, tests and consultation.
It does not provide an approval for or endorsement of the design of the projects or other matters to be handled under planning and environmental approvals.
The proposed project, which was originally planned for Portland, had switched focus to a location off Port Fairy.
But Spinifex still hopes to connect to the grid through the Portland Aluminium smelter - a potential customer.
Spinifex project development manager Linden Blair and project director Peter Caluwaerts said reaching this key milestone had been a big team effort over many years.
"It's taken almost four years of early development work to get to this stage. We've submitted an extensive application in what's a key milestone for the Spinifex project," Mr Blair said.
"Our early work has included several initial environmental and technical studies as well as early engagement with key stakeholders and the community," Mr Caluwaerts said.
Parkwind co-chief executive officer Francois Van Leeuw said it was hoping licences would be awarded as soon as possible.
"In the meantime, we will continue to undertake pre-licence award work such as environmental surveys for marine life, wind monitoring, and stakeholder engagement where appropriate," he said.
"We'll continue to provide updates on the project and if we are awarded a licence, we will begin our detailed studies and consultation process. There will be many more opportunities for community input to come.
"The Victorian and Commonwealth governments have set ambitious renewable energy targets and we're confident that a completed Spinifex project will play a critical role in enabling this transition."