Interview with Leon Compton, ABC Hobart and Northern Tasmania Mornings

LEON COMPTON (HOST): So, after all of the planning, and let's be real, we've been critical of the delays that it takes for anything to get done when it comes to renewable energy and energy infrastructure in Tasmania over many, many years. The last piece of renewable that generated a kilowatt of electricity out of Tasmania happened back in 2020, six years ago. So, with the unlocking of what we're told could be the final piece of the Marinus Link project story, is that the final countdown? I don't know. I'm looking for reasons to smile this morning. It's a tough day in the news, so let's get around the idea that it might be the final investment decision, or rather, the final permit approval for Marinus Link. For people that are new to Tasmania, we're talking about in the first instance, so cable one up to 750 megawatts of capacity that'd go in two directions, across and back, from Tasmania to the mainland. What's it for? Well, I feel like that story is changing, even as the project evolves. Is it for Tasmania to sell high-value electricity into the mainland at peak times? Is it to keep the lights on here? Is it to create opportunities for things like data centres in Tasmania. What's it for? And is it now time just to start getting it done? Josh Wilson is Assistant Minister for Climate Change and Energy in the federal government. Josh Wilson, good morning to you. 

JOSH WILSON: Good morning, Leon. I love the musical introduction. 

COMPTON: It's a tough news day. It sometimes must get tough for you to look at it, as well. We've got stories like, what have we got? I mean, stories involving you know babies that have been stabbed, children that have been shot. We've got Donald Trump. We've got AI. It's all going on in the news this morning. So, let's talk about a project that most people are interested in watching unfold. You will not be surprised to know that some in Tasmania have reservations. Is this go now, Josh Wilson, is this the last piece in the Marinus puzzle? 

WILSON: Well, it's a really big step forward. It's a big milestone to get to the point of issuing the licence. It's the first licence that we've issued under the new transmission and infrastructure offshore arrangements, and it paves the way now for Marinus Link to move towards construction. As you say, people have watched it and waited for it to get going for a period of time, and we really look forward to see that work start to connect a 345-kilometre cable between Burnie and Waratah Bay in Tasmania and Victoria, respectively, because it would mean that Tasmania is better connected for a whole range of reasons, and we’re confident, and I think Tasmanians should be confident that that represents a positive step forward for Tasmania's energy future. 

COMPTON: I feel like the story keeps changing as to why we need Marinus at all, and is it to help the mainland kick its reliance on coal, or is it for something else? 

WILSON: Well, it’s certainly not got anything to do with reliance on coal. It's based on a simple principle, which is that energy systems work best and most flexibly when they're connected, and to some degree, the fact that the way we look at it changes just shows the nature of life in the 21st century, particularly the evolution of our energy systems. They are going to keep changing, and we're going to keep dealing with innovation and new developments. Some of which we can see, some of which will emerge, but there's no question that that being better connected as a grid, and I say that as a Western Australian, when you know we are the part of the Australian system that isn't connected and doesn't really have a prospect of being connected, being connected is good. It will mean that Tasmania can have access to cheaper renewables that are present in the national energy market on the mainland side, and it will mean that the mainland can benefit from the deep storage that is derived from Tasmania's status as the hydropower king. Both of those things are good. That flexibility and interconnectedness is good, and the project will have a range of broader economic and employment benefits as well. 

COMPTON: The project delivery deadline has been pushed back and back and back and back. It was going to be two cables. Now it's one. Are you still confident that there will be a Marinus Link operating, carrying electricity across Bass Strait by 2030?

WILSON: Well, I'm confident that we're on track with a timetable that has changed, as you say. I mean, it is the nature of particularly of these kinds of infrastructure projects, and when I say these, I mean there aren't that many subsea electricity cables of this kind. This will be a pretty remarkable undertaking, but we're confident, we've certainly borne down on getting the steps executed that put us in a position, puts Marinus Link in a position to kick off the construction phase. And as you've noted, it's intended to deliver 750 megawatts by 2030, and then there's an option for a further 750-megawatt link beyond that, which would be stage two. But obviously, we focus now on stage one and get cracking with all of the work that that requires, but also all of the opportunities. I mean, the process will involve 2,400 jobs. You know, I know what your representative Anne Urquhart, the Member for Braddon, has said in relation to Tasmania's Clean Energy Centre of Excellence. You know, the opportunity to link up new training opportunities with the work opportunities that come with it. Those things will be good, but ultimately the best thing will be when the cable's established and those both way energy system benefits can be experienced. 

COMPTON: Yeah, it's just a confusing time to be looking at the energy space and it's complex in Tasmania. On the one hand, we were producing extra renewables to help coal-fired power come out of the system on the mainland and sell into it at peak times when we could firm. Then data centres popped up, and suddenly we've got hundreds of megawatts of electricity that are available to sell there. Tasmanians are still trying to understand what all of that looks like. At the same time, Minister, and to the question, have you got any more information about a power deal for Rio Tinto's aluminium smelter at Bell Bay? It expires in three months. Are you helping with a new contract? 

WILSON: Well, look, we want to see that resolved. We know how important it is. We know how important Bell Bay is to Tasmania, to its economy and sort of broader economic and social well-being in Tasmania. It's a matter for the operator and Tas Hydro come into an arrangement in in relation to that offtake agreement or that sort of long-term power purchase. 

COMPTON: But are you more heavily involved now? You were in the extension of the Tomago power deal up to your ears as a federal government, but not this one. Are you now involved three months out from the already extended power contract expiring? 

WILSON: Well, it's really a matter for the Tasmanian government and the operator to come to an arrangement. The levers are in the hands of those two sides of the equation. Certainly, in the hands of the Tasmanian government in relation to the power purchase side of it and Bell Bay, in this case, it's not a situation where this is conditional on some sort of further decarbonisation or other kind of industrial shift that might involve the Commonwealth. We want to see this unresolved matter get resolved because we know how significant Bell Bay is to Tasmania. So, we encourage both sides to keep working in a cooperative, focused way, and we encourage the Tasmanian government to use the levers that that they have at their disposal in relation to Tas Hydro. 

COMPTON: But to be clear, is there any federal money, Minister, as there was in the case of Tomago in New South Wales and the Rio Tinto smelting operations there? Is there any federal money that's on the table to help that deal get done?

WILSON: That's not what's required to resolve this. It’s a question for the Tasmanian government, which operates the utility, to work with the operator of Bell Bay and strike an agreement, as they have had an agreement in the past in relation to the use of power, it's something that can occur. You understand how these negotiations can take a little while, while both sides find a point of comfort in the middle, and we encourage both the operator and the Tasmanian government that has that has all the levers at its disposal to reach an agreement with Rio Tinto to do so in a timely way. 

COMPTON: 936 ABC Hobart, ABC Northern Tasmania, news that the federal approval for the laying of the cable in Commonwealth waters, which happens just off the coast of Burnie, and indeed just before you get to the physical coastline of Victoria, has been approved. Josh Wilson's our guest, Assistant Minister for Climate Change and Energy, and also on this Grand Final Eve, Friday, the Minister, or rather, the Member for Fremantle, Josh Wilson, are you in Victoria? Have you got tickets to the G tomorrow? 

WILSON: I don't. I want to be in Fremantle. I want to be in my community. It's been a big build-up here. The town is covered in purple. All of the shops and businesses are getting involved. There are new murals that pop up every day. The other day I had a cupcake with an anchor on it, and then I had an ice cream that was purple, and even a purple a beer, which was which was named ‘Purple Rain’. So, it's sort of, yeah, AFL premiership fever in Fremantle, and I really want to be here with my community on Saturday, and despite the fact that we're expecting a little bit of rain, I think it will be a fantastic occasion, and we've got everything crossed that we might be successful, at our second time of asking, playing in the grand final for the first time since 2013.

COMPTON: We've got to keep moving because your captain, Alex Pearce, of course, is a proud North West Tasmanian. This week, we've spoken to the woman that helped deliver him. We've spoken to Alex's dad, the president of the local footy club, and his mum is coming up in a few minutes from now. Josh Wilson appreciate you talking with us this morning. Thank you. 

WILSON: Thanks, Leon.