From potential to prosperity – the major developments reshaping Northern Tasmania’s future

Northern Tasmania’s economic potential could soon grow significantly, following a chain of “game changing” developments – similar in magnitude to those which transformed the state 100 years ago – according to ReCFIT’s Acting CEO, Vanessa Pinto.

The developments are largely being spurred by a Final Investment Decision on the Marinus Link, a deep-sea cable with 750-megawatt capacity, which will enable the efficient transportation of renewables and, importantly, energy firming services between Tasmania and mainland Australia.

Once complete, Ms Pinto says the project will be a “turning point for the state”, which hosts some of Australia’s highest-capacity wind farms.

“We’re now at that stage of being able to unlock these natural resources and push things through at quite a pace,” she said ahead of the Northern Tasmania Investment Conference.

“On top of Basslink, Tasmania’s existing 500 MW cable, Marinus Link will give further access to the national market and enable developers to leverage the phenomenal natural resources that we have here. In fact, nationally, we’ve got Musselroe in Northern Tasmania in the top spot in October, just shy of a 60 percent wind-capacity factor – quite remarkable.

“So, what you’ve got is this beautiful natural resource for renewable developments on island, with access to a bigger market that then helps bankroll the financials.”

Capital injections

Already, the region is seeing unprecedented levels of public and private investment, and Ms Pinto expects this capital to make economic waves, just as it did in Tasmania’s past.

“In some ways it’s reminiscent of where Tasmania was 100 years ago, when it sought, quite courageously, to invest in hydro-generation.

“That delivered towns and communities a form of economic injection that sustained them for quite a period, and that’s what I’m expecting to see this time around. Once you provide those triggers, investment responds,” she said.

Combined, the Marinus Link and North West Transmission Development projects, the 288 MW Northern Midlands Solar Farm, 224 MW Bell Bay Wind Farm, and HIF green methanol e-fuels plant in Burnie, equate to more than $7 billion in real investment planned for the region over the next five years. This figure will grow if the Robbins Island Wind Farm and Whale Back Ridge progress as planned.

Adding to that, Bell Bay Power Fuels green methanol e-fuels project at the Tasmanian Green Hydrogen Hub in Bell Bay will spur further economic progress.

“This is real jobs, and real outcomes,” Ms Pinto said.

“The expectation for the Marinus Link project is that about 45 percent of the workforce will be sourced from the North West, and that will then travel through the supply chain. It’ll benefit local businesses in hospitality and accommodation, and any businesses providing other elements involved in the contracting itself.

“The North West Transmission Development project will require advanced materials, skilled trades, and partnerships across Tasmania and beyond. Large-scale solar in the North West means demand for panels, electrical components, and installation expertise, opportunities for regional businesses and workers.

“And it’s not just electricians that will be needed. It will be builders, bricklayers, concreters, civil works teams, graphic designers, project managers, logistics specialists, technical advisors and assessors, fabricators, welders, gas fitters, plumbers, pipeline experts, engineers, engagement specialists, the list goes on.”

Workforce training

The Australian and Tasmanian governments have already anticipated this uplift in jobs and established the Clean Energy Centre of Excellence in Burnie to bolster the workforce. The $26.4 million (Australian and Tasmanian Government matched funding) education centre will provide career pathways beginning at school and extending to mature workers.

“It’s not just about providing opportunities for our young people, but also pathways for career development. People might be in a later stage of their career but recognise the opportunity to move back to their hometown in the North West and capitalise on all that is happening here.

“There should also be pathways for women re-entering the workforce, and jobs for new arrivals to Tasmania. These projects can be transformational in this regard.”

Hydro developments

Tasmania’s hydro industry is also preparing for a new future – one where its flexible capacity helps provide the firming services needed in both Tasmania and the National Electricity Market.

“Hydro has an extensive capital investment program to bring its existing fleet of power stations into the position of capturing new value opportunities,” Ms Pinto said. “It’ll be going through quite a bit of work to maintain its assets and keep power stations in a healthy state to make the most of the increased interconnection.

“That again means opportunities, including in regional communities, which is really important.”

Green hydrogen and derivatives

The Tasmanian Green Hydrogen Hub is developing further positive news for Tasmania’s north, with the hub gaining Commonwealth backing of $70 million, alongside an $11.9 million contribution from the Tasmanian Government.

“It’s expected to unlock around $1.2 billion in private capital and more than 700 jobs. It’s all premised on providing multi-use enabling infrastructure, things like transmission upgrades, water security through the proposed Tamar Water Scheme, access to land, and the opening up of ports. That then enables large-scale hydrogen projects to be developed.”

Developments in hydrogen derivative industries are also spurring change across the state, with the likes of Bell Bay Power Fuels looking to deliver a green methanol facility in the Bell Bay region, as well as Countrywide providing hydrogen for local heavy transport.

A new proposal from H2U for ammonia further demonstrates the region’s potential.

“We have just secured Bell Bay Power Fuels as a provisional proponent after an expression of interest process,” Ms Pinto said.

Likewise, HIF Global is looking at a $1.2 billion e-methanol facility at the former Burnie Pulp Mill, which will inject upwards of 200 jobs.

“There’s lots of work going on in that space, both with private industry and across multiple government agencies and businesses to help make this project happen,” Ms Pinto added.

Engagement

Engagement work with traditional landowners is also drawing the interest of developers, many of whom are looking to create long-term value in the communities they work within.

“The Tasmanian Green Hydrogen Hub is working closely with George Town Council and provides active engagement with the Palawa people in Tasmania’s north.

“They are providing guidance on how we can work together, making sure we’re inclusive, transparent, and looking at ways we can deliver benefits to First Nations communities as well as the broader region.”

Further insight

Sharing more on the developments reshaping Tasmania’s future, Sean Terry will present at the upcoming Northern Tasmanian Investment Conference.

This year’s event will be held 3–4 December.

Learn more and register your tickets here.