Major milestones push massive Project Marinus towards construction

A landmark agreement has been signed between the Tasmanian and Australian Governments, green lighting the delivery of Project Marinus. 

Project Marinus is comprised of two significant projects that will help drive down electricity prices. The projects are: 

• Marinus Link – an undersea and underground electricity and telecommunications interconnector between North West Tasmania and the Latrobe Valley in Victoria. This will be built in two stages, each delivering 750MW capacity. The project’s cable will span 345 kilometres – including 255 kilometres of undersea cables across Bass Strait and 90 kilometres of underground cables in Gippsland, Victoria. Marinus Link Pty Ltd is leading the delivery of this project. 

• North West Transmission Development (NWTD) – this project will upgrade Tasmania’s transmission network, enabling it to support additional capacity in the electricity grid. NWTD will include 240 kilometres of new and upgraded overhead transmission lines and related infrastructure. TasNetworks will be delivering this project. 

“We have worked closely with the Australian and Victorian Governments to ensure Marinus stacks up for Tasmanians. 

“Marinus will deliver lower power prices, create more than 2,000 jobs in Tasmania, generate huge economic stimulus, and deliver intergenerational energy infrastructure. 

“It is estimated an additional $470 million will be added to the State’s bottom line each year on average, ensuring we can invest more in hospitals, schools, roads and keep power prices low. 

“All these benefits to Tasmania are being delivered from Tasmania’s capped $103 million investment into Marinus. 

“We will be in the corner of Tasmanians. This agreement is a win for investment, a win for jobs and a win for keeping our power prices low,” Premier Jeremy Rockliff said. 

With the agreement signed, the Australian Government will now commit its share of the NWTD. 

Under the agreement: 

• Tasmanian households and small businesses will pay lower power prices with Marinus than without it 

• Tasmanian taxpayers no longer need to contribute further equity into the project while retaining shareholder say in key decisions affecting Tasmanians 

• The cost of the NWTD is fairly shared 

• A $346 million grant to the State to develop the NWTD 

• $650 million additional concessional financing for Tarraleah 

• More than 7GW of private sector energy investment is unlocked 

• Economic benefits and Hydro profit returns are protected 

In addition to the landmark agreement with the Australian Government, the Tasmanian Government has also reached Final Investment Decision (FID) to enable Stage 1 of Project Marinus to proceed. 

“Marinus provides a once-in-a-generation opportunity to create jobs, industries and grow our economy to support the lifestyle that Tasmanians expect and deserve. 

“It will deliver the energy Tasmania needs to grow and for our communities to continue to electrify, while ensuring that our State reaps the benefits of our unique energy assets and their contribution to Australia’s renewable energy transition. 

“With this deal in place, I can confirm Tasmania has made a positive final investment decision, agreeing to move the project forward to construction,” Minister for Energy and Renewables Nick Duigan said. 

“Today is a great day for Tasmania, and this milestone reflects the importance and role the NWTD and Marinus Link will play in our energy landscape. 

“TasNetworks was already on-track to deliver the North-West Transmission Developments efficiently and cost-effectively. This new contribution of $346 million from the Commonwealth will save Tasmanians even more. And it shows just how much value our leaders see in this visionary project. 

Marinus Link alignment (source: Marinus Link)

Moreover, Marinus Link has been given approval under the Environment Protection and Biodiversity Conservation Act 1999. This will set out environmental-related conditions for the project’s construction, operation and decommissioning. 

Final primary approvals for Marinus Link under the State legislation are expected later this year. 

“This is another major step forward – we are on the home stretch, and our organisation is mobilising to construct this nationally significant project in 2026. 

“As the project progresses, we will continue to engage with key stakeholders, including landholders, to implement the conditions and deliver the project to a high environmental standard,” Marinus Link CEO Stephanie McGregor said. 

A thorough and detailed analysis carried out by RecFIT and Treasury, along with independent consultants, shows that Project Marinus will help keep the State’s power prices low while creating an economic boon for Tasmania. 

Economic stimulus that results from an additional investment of around $4.4 billion in Tasmania is forecasted as well as an increase in Hydro profits that will directly benefit the State’s bottom line. 

Benefits from Project Marinus will flow to every Tasmanian household through lower electricity prices and increased dividends from Hydro Tasmania. 

Construction on Project Marinus Stage 1 is expected to commence in 2026 and be completed in 2030. 

“Marinus Link will bring more of Tasmania’s hydroelectricity to the mainland. 

“It will deliver an economic boost to Tasmania and wider Australian industry during construction as well as having long lasting benefits by improving the transmission of cleaner reliable renewable energy. 

“The Albanese Government is committed to delivering a clean energy future that benefits all Australians,” Minister for Climate Change and Energy Chris Bowen said. 

Source: Premier of Tasmania – Latest News; Renewables, Climate and Future Industries Tasmania (RecFIT); TasNetworks (1, 2); Marinus Link (1, 2, 3); Minister for Climate Change and Energy