Marinus Link advances under new deal

Marinus Link has welcomed the new deal struck between the Tasmanian and Australian governments to take the project forward. 

Chief Executive Officer Caroline Wykamp said today’s announcement was a signal of confidence for the project, which stood to deliver significant environmental, economic and social benefits. 

“Marinus Link is more than an interconnector; it’s an enabler,” she said.

“This project will deliver more renewable generation development in Tasmania and the mainland, more energy security to both Tasmania and the mainland and more movement and access to lower-cost renewable energy sources, helping deliver lower energy costs in the long term.

“Importantly, Marinus Link will unlock new renewable enterprise and support the research, development, advanced manufacturing and operations of this industry. The project stands to deliver more than 3300 jobs and $3.3 billion in economic stimulus.

“The first stage of the cable, which we are prioritising while negotiations continue for the second stage, will deliver 75 per cent of the gross market benefits and more than 60 per cent of the economic benefits. That’s more than $2 billion in economic stimulus and more than 2400 jobs, particularly in regional areas such as the North West of Tasmania and Gippsland in Victoria.

“On behalf of the project team, I want to acknowledge the commitment of the Australian, Tasmanian and Victorian governments to progress this nationally important project.”

Marinus Link is currently undertaking a global tender process for HVDC cables and converter stations as it works towards a final investment decision by the end of 2024.

Announcement highlights: 

• The Commonwealth’s equity share in a joint venture equity is now 49%, with Tasmania’s share at 17.7% and Victoria at 33.3%. 
• Tasmania will have the option to sell its stake to the Commonwealth upon commissioning of the project.  
• There’s an increase in concessionality of Commonwealth debt financing via the Clean Energy Finance Corporation (CEFC) – subject to CEFC independent decision making and due diligence, delivering lower costs for consumers.  
• Updated economic analysis from Marinus Link indicates that stage one of the project is expected to deliver economic stimulus of over $2 billion and over 2400 jobs. 
• The project will focus on one cable in the first instance, with cable two negotiations to continue and be considered as part of final investment decision making.  
• Marinus Link’s latest cost estimates indicate that stage one of the project will cost in the range of $3.0-3.3 billion, which will deliver two-thirds of the economic benefits of the project.  
• Based on the updated arrangements the Tasmanian Government estimates its investment to be $106-117 million.