Oceanex Energy is in the early planning stages for a 1.8 gigawatt floating windfarm off the Hunter coast.

Newcastle Lord Mayor Nuatali Nelmes outlined the city's ambition to embrace the opportunities of wind generation at an online forum on Thursday night hosted by The Climate Council and Friends of the Earth.

"Our strengths are our existing skilled workforce, a major export port and the strongest grid in the national energy market," Councillor Nelmes said.

"The Australian Energy Market Operator has already suggested the Hunter offshore wind zone has the lowest cost to expand of any renewable energy zone in the national electricity market.

"These features mean Newcastle is perfectly positioned to be the location for this type of clean energy infrastructure."

A Blue Economy Cooperative Research Centre report released in July said Australia was yet to capitalise on significant offshore wind capacity despite the International Energy Agency nominating it as one of the "big three" likely sources of renewable energy globally alongside solar and onshore wind.

It said sites that had traditionally been electricity generation hubs, such as the Hunter and Latrobe valleys and Gladstone, were found to be particularly suitable as they were close to transmission grids and had strong offshore winds at times when solar and onshore wind output was limited.

More than 2,000 gigawatts could potentially be installed within 100 kilometres of current substations and excluding environmentally restricted and low wind areas - far in excess of total current electricity generation.

Oceanex Energy is in the early planning stages for a 1.8 gigawatt floating windfarm off the Hunter coast. It is one of five projects with a combined capacity of 9 gigawatts that the company wants to develop.

The company believes the projects will support new industries such as green hydrogen and electric transport as well as avoid the environment issues with land based infrastructure and energy projects.

Newcastle councillors endorsed a Lord Mayoral minute about the potential of wind-generated energy late last year.

A report attached to the motion said that with the correct legislative and regulatory framework, offshore wind could unlock billions in new investment in renewable energy infrastructure.

It would also help to diversify Newcastle's economy by pivoting thousands of jobs in the local manufacturing, construction, maritime, transport and logistics industries into the renewable energy sector.

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