Lockton appointed for $3.5 billion renewable power project

Lockton has been selected as the insurance adviser and broker for the Marinus Link Project, which involves construction of an undersea electricity and telecommunications connection between Tasmania and Victoria.

The proposed $3.5 billion project will allow more renewable hydro and wind power generation from Tasmania to enter the national electricity grid as coal-fired generation in mainland states is retired.

Marinus says the 1500-megawatt capacity development includes 255 kilometres of undersea high voltage direct current cable, further underground cables and converter stations in Tasmania and Victoria and construction of supporting transmission lines.

The insurance advisory role would extend support through to commercial operations anticipated towards the end of the decade. A Marinus feasibility and business case assessment was completed in 2019 and it’s currently in the design and approvals phase, which includes finalising contracting, procurement and insurance strategies.

Lockton says it has assembled an experienced major project insurance team, with on-the-ground experts working with international colleagues.

Around the world, numerous interconnectors are planned, underway or have been recently completed, but the projects face underwriting challenges.

“The availability of insurance capital is discerning in a ‘harder’ market and very selective to which projects to support,” Lockton National Manager and project lead Antony Meakin said.

“Lockton’s proven major project approach will maximise the market response to what is an epoch-defining project for Australia and the country’s commitment to unlocking renewable energy.”

The Marinus project would operate in addition to the Basslink interconnector, a smaller capacity cable crossing Bass Strait that has been in service since 2006.

The new connection will unlock estimated emission reductions of at least 140 million tonnes of CO2 by 2050, equivalent to taking about a million petrol and diesel cars off the road.

“Achieving a successful, bankable-insurance program for such a critical project in delivering Australia’s net-zero commitments is our top priority,” Lockton National Manager Power and Energy Ranga Jayaratne said.

“Helping to deliver the battery of the nation to the mainland, harnessing Tasmania’s world-scale renewable energy generation, is a once in a generation opportunity and our team is immensely honoured to have been selected by Project Marinus.”