A crane was used to dismantle the 73m-high structure, which has been a striking feature on Cormorant Drive.
It's been purchased by Tasmanian poultry farmer Robert Nichols, who also runs a business called Blowing in the Wind that dismantles and recycles used wind turbines.
The turbine was installed in 1997 by EnergyAustralia to promote green energy, and was Australia's first large-scale single wind turbine.
But Ausgrid recently decided that, given its age and the cost to maintain it, it was no longer financially viable.
Mr Nichols, who is in Newcastle to personally supervise the turbine's removal, said it was possible it would end up either on his own poultry farm or relocated elsewhere in Tasmania.
He wouldn't disclose how much he'd paid for it, but said most of the cost was in the dismantling and shipping.
The removal of the Kooragang turbine had gone very smoothly, he said, adding that it's the eighth he's dismantled, including six he brought over from Denmark.
Mr Nichols said usually when wind turbines are removed it's to replace them with a larger one, so he's a little surprised Newcastle won't replace this one.
"It's a shame," he said.
"But anyway, we love them in Tasmania.
"It's most likely going to be sold on and relocated to another site, in hopefully a fairly windy part of Tasmania."
He predicts the turbine will generate up to three times the energy it's been producing at Kooragang, due to the windier location it's headed to.
Mr Nichols said just in the past few days there had been wind storms with gusts up to 90km/h in the area.
Wind turbines have often attracted controversy, but Mr Nichols said most of the criticism was usually directed at large-scale wind farms.
"The scale that we play at is what's called embedded generation, so that's single turbines located on farms or small businesses," he said.
"And they seem to be a lot more acceptable by the community than the large wind farms."
Robert Nichols spoke to Jill Emberson on 1233 ABC Newcastle Mornings.
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