Barry Beach, the Exxon spokesman said, could “safely accommodate both ongoing offshore support and onshore recycling, and, importantly, dredging is not required”.

A spokeswoman for Victorian Environment Minister Steve Dimopoulos said Esso was yet to formally approach the state government about the project.

Federal Environment Minister Tanya Plibersek declined to comment on the proposal, but a department spokeswoman said Esso would be required to refer the project under environmental laws if the company believed its plans “could cause a significant impact to nationally protected matters”.

Luke Anedda, president of the Corner Inlet Fisheries Habitat Association, is a second-generation fisherman who has spent his working life on sustainable fishing practices. He is concerned Esso’s proposal could place Victoria’s seafood supply at risk.

“The last bay and inlet fishery in Victoria is Corner Inlet, which the whole of Victoria relies on for garfish, King George whiting, calamari, rock flathead and all sorts of species,” he said.

“Is it worth the risk of these big companies coming in here and doing that?”

Friends of the Earth condemned the plan to take 60,000 tonnes of steel and other materials, including those contaminated with mercury, radioactive material and hydrocarbons, to Corner Inlet.

Offshore fossil gas campaigner Jeff Waters said: “That Esso wants to build a massive, highly toxic, multi-storey breaking yard in the middle of this fragile wetland is just another demonstration of how it holds Australia in contempt.

“How are they going to remove thousands of tonnes of hazardous radioactive waste? Where will it be stored? This is an enormous toxic threat to an internationally important wetland, and governments need to act immediately.”

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Corner Inlet is listed as a wetland of international importance under the Ramsar Convention on the conservation of wetlands.

Anedda, who is also an industry director for Seafood Industry Victoria, said Esso had yet to approach Corner Inlet fishers or the industry about its plans.

He questioned how Esso would measure the effects of its decommissioning works on Corner Inlet, and whether it would compensate locals in the event of oil or other pollutants being spilled.

“That’s what a lot of these big industries can’t tell us,” he said.

Plibersek rejected a Victorian proposal for wind turbines at the Port of Hastings in December over concerns the wind farm would pose “clearly unacceptable” risks to the Ramsar wetlands there.

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A spokesman for the National Offshore Petroleum Safety and Environmental Management Authority said it had no jurisdiction over the Barry Beach proposal because it was on shore, but Esso would be required to submit an environment plan for any operations in Commonwealth waters.

A Victorian government spokeswoman said any projects that could impact a Ramsar-listed area would be required to be assessed under federal environment and biodiversity protection and state environment effects acts.

“The Victorian government has not been approached by Esso about a proposal for a breaking and recycling yard for retired oil and gas platforms from Bass Strait at Corner Inlet,” she said.

“As there is no official proposal lodged with the Victorian government, no referrals for under the [acts] have been triggered.”

An Exxon spokesman said Esso had awarded a contract to Allseas Marine Contractors earlier this year to remove up to 12 offshore platforms from Bass Strait in late 2027 and transport the materials to Barry Beach for dismantling and recycling.

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