The 1.6GW project would start about 15km offshore and extend seaward, and would involve about 100 turbines each 250m above the sea, with 100m-long blades.

Renewables firm Energy Estate and offshore wind developer BlueEnergy are behind the Illawarra proposal, and they're also proposing similar projects off the coast of Newcastle and Gippsland.

"The reason we're here is because of Port Kembla," Energy Estate founder Simon Currie said.

"We've done all that initial pre-feasibility, and we want to be one of the parties both competing ... and collaborating. We see this as an opportunity to create an industry in this region ... an Illawarra Clean Coast Ecosystem."

BlueEnergy country manager Nick Sankey, who said the investment would be about $5 billion, said he understands the visual impact will be a significant concern to Illawarra residents.

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At 15km, turbines would be clearly visible from land at sea level - more so from higher up the escarpment. To help estimate, many of the bulk carriers waiting to enter Port Kembla are moored about 10km out.

Mr Sankey said developing artist impressions to illustrate the visual impact was next.

BlueFloat and European partner Falck Renewables were recently the successful bidders to develop three offshore wind farms in Scotland. BlueFloat is also involved in developing a project off the coast of Catalonia.

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