Marinus Link confirms 2030 start date after signing $1bn supply deal with Italian firm Prysmian

Marinus Link has signed a manufacturing and installation deal worth nearly $1bn with an Italian company, to lock in a 2030 start date for the infrastructure project.

An artist’s impression of the Marinus Link route between Victoria and Tasmania.

Marinus Link, an undersea cable that will allow the transmission of excess renewable energy between Victoria and Tasmania, will be operational in 2030 after the ­developer signed a near-$1bn supply agreement with Italian company Prysmian.

The deal accelerates development of a project earmarked as critical by the Australian Energy Market Operator, as the nation struggles to meet an ambitious shift towards renewable energy.

Tasmania has the nation’s highest penetration of renewable energy as it benefits from hydro facilities and strong winds, although it is currently in a drought. Victoria is one of Australia’s most fossil fuel-dependent states, but has set an ambitious plan to rapidly transition to renewables in just over a decade.

An undersea cable has been earmarked as allowing the transfer of electricity generated between Tasmania and the main­land during periods when one state have insufficient amounts of power. The development has been accelerated with the signing of the contract between Marinus and Prysmian.

Marinus Link CEO Caroline Wykamp.

Marinus Link chief executive Caroline Wykamp said the Italian company was the largest cable manufacturer in the world.

“Prysmian has proven and global expertise in delivering projects like Marinus Link,” Ms Wykamp said.

“We have booked their most advanced cabling vessel – the Leonardo da Vinci. Marinus Link will enable Tasmania to import excess supply of solar and wind produced interstate, while reserving its hydro and storing the extra energy. Clean hydropower can then feed the national grid when it is needed most, acting as a large battery for the nation.”

The project’s cables span 345km – 255km undersea across Bass Strait and a further 90km underground in Gippsland.

Prysmian said the contract was worth €600m ($995m). The Weekend Australian understands Prysmian will begin manufacturing the high-voltage cable in 2028, before installation is completed before 2030.

Prysmian executive vice-president Hakan Ozmen said the deal cemented the company’s global leader position.

“This project strengthens our global leadership, as well as our position in Oceania’s fast-growing renewables market,” Mr Ozmen said.

“We are proud to support Australia in its goal to combine the benefits of renewable energy to deliver low-cost, reliable and clean energy to customers.”

Prysmian will begin manufacturing the high-voltage cable in 2028, before installation is completed before 2030.

The project was destined to be scrapped at one stage last year when Tasmanian Premier Jeremy Rockliff said there had been a “material and a significant increase” in cost, and there was a limit to how much the state would be able to stump up.

The project initially proposed as two 750MW undersea cables between Tasmania’s north­west and Victoria’s Latrobe Valley, was eventually rescued when a deal was struck between the federal government, Tasmania and Victoria. As part of the amended deal, Tasmania’s equity fell from 33 per cent to 17.7 per cent, and it will have the ability to sell its stake to the federal government after the link is commissioned.

The federal government has pledged $20bn to accelerate development of high-voltage transmission lines.