Marinus Link Pty Ltd has achieved financial close and issued notices to proceed on its cable and converter contracts following a $3.8 billion investment from the Clean Energy Finance Corporation (CEFC).
The CEFC investment is the biggest since it began and will provide critical backing for the 750MW Stage 1 of Marinus Link, the undersea and underground electricity and data interconnector between north-west Tasmania and the Latrobe Valley in Victoria.
The investment completes the financing requirements for Marinus Link Stage 1, which received equity commitments from the Commonwealth, Tasmania and Victoria in August.
The confirmation of project financing has enabled the issuance of notices to proceed for Marinus Link’s cable and converter technology suppliers, Prysmian Powerlink and Hitachi Energy, who will now finalise engineering designs and commence pre-construction activities.
MLPL CEO, Stephanie McGregor, said the two pivotal milestones are a major landmark in transitioning to the Manufacturing, Construction and Commissioning phase.
“Marinus Link Stage 1 is now fully funded, we have key Commonwealth and Victorian environmental approvals, a draft regulatory decision and almost all major contracts in place,” she said.
“Our expert team is mobilising for construction in 2026, and we are thrilled to deliver this critical national energy infrastructure, which will bolster energy security, promote renewable energy investment and deliver tangible benefits to consumers in Tasmania, Victoria and the broader National Electricity Market (NEM).”
MLPL is jointly owned by the Commonwealth of Australia, the State of Tasmania and the State of Victoria. MLPL is responsible for progressing the Marinus Link interconnector project.
The interconnector will support the two-way exchange of Tasmania’s vast hydropower and wind developments with the excess solar and wind generated from abundant renewable energy assets in Victoria and NSW.
The CEFC investment, in the form of long-term concessional debt finance, is part of a broader funding package that includes equity investment from the Australian, Tasmanian and Victorian Governments, as co-owners of Marinus Link.
MLPL said that this long-term finance is expected to deliver $900 million in benefits to Tasmanian and Victorian electricity consumers during the first five years of the project’s operation alone – which means that the concessional finance will reduce the impact of transmission-related consumer costs by 45 per cent.
“The ability to access the concessional loan through the CEFC enables us to deliver this critical infrastructure at the lowest possible cost to consumers,” Ms McGregor said.
CEFC CEO, Ian Learmonth, said that Marinus Link is another critical piece in the renewable energy transformation of Australia’s electricity grid.
“As a specialist green energy investor, the CEFC is committed to using our capital to accelerate the delivery of nation building projects of this scale. As with all our transmission-related investments, we have taken care to structure our finance in a way that maximises the benefits to consumers, by lowering project borrowing costs, which in turn will lower overall project costs,” he said.
“With its capacity to distribute Australia’s abundant renewable energy resources to where they are needed, Marinus Link is truly a vital part of Australia’s clean energy infrastructure of the 21st century.”
Marinus Link is the seventh project to be financed through the CEFC Rewiring the Nation (RTN) Fund, with the total value of CEFC RTN Fund commitments exceeding $7 billion, across grid modernisation projects in New South Wales, Victoria, the ACT and Tasmania. The projects include the Central-West Orana Renewable Energy Zone, HumeLink and elements of the Victoria-New South Wales Interconnector.
CEFC RTN Chief Investment Officer, Paul McCartney, said the Rewiring the Nation Fund was created to spearhead investment in transmission infrastructure, long duration storage, electricity distribution network infrastructure and distributed energy resources.
“Our backing for Marinus Link will deliver substantial investment and economic benefits across large parts of the Australian economy, with cleaner, more affordable renewable energy replacing ageing coal-fired generators as they exit the electricity system,” he said.
“This visionary project will enable Tasmania to share its substantial hydro power energy and wind resources with the much larger NEM, helping firm the grid.
“It will also provide Tasmanian consumers with access to abundant low cost solar and wind energy from the mainland, as well as enhanced energy security. This is a win-win for both ends of Marinus Link. This significant investment of CEFC concessional finance will mean Marinus Link will cost less to build and operate, lowering the impact on energy bills.”
Marinus Link includes high voltage direct current cables, fibre optic cables, a communications station, and converter stations at each end. The cables span 345 kilometres, including 255km of undersea cables across Bass Strait and 90km of underground cables in Gippsland, Victoria.
“Australia has embarked on an historic transformation of our energy system, driven by the advanced retirement of ageing coal-fired power stations and the urgent need to transition our economy to a net-zero emissions future. Switching to a reliable and secure renewable energy electricity system is the first critical step in this transition, paving the way for widespread electrification in our homes and businesses, on our roads and our farms,” Mr Learmonth said.
“In investing on behalf of the Federal Government, the CEFC RTN Fund has a particular focus on using our capital to deliver these complex energy projects in a manner that reduces costs while accelerating project timelines.”
Marinus Link is listed as a priority for decarbonisation on the Federal Government’s National Renewable Energy Priority List and is classified as urgent in the Australian Energy Market Operator’s 2024 optimal plan for the national grid. Construction is expected to commence in 2026, with Stage 1 scheduled for completion by 2030.
