Marinus Link has received a multi-million dollar boost in the federal budget to help advance the design and approval phase.
The Bass Strait interconnector was funded as part of a $250 million package to accelerate major transmission projects across Australia.
Marinus Link will get a share of the millions along with other projects, such as the interconnector between Victoria and New South Wales, VNI West.
The federal government will also establish a special type of corporate entity, a "Special Purpose Vehicle", to progress Marinus Link to the design and approval phase.
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Minister for Energy and Emissions Reduction Angus Taylor said that would "enable a financial investment decision by 2024".
"Unlocking new forms of energy generation in Tasmania is a priority of the Morrison government," he said.
"Together with the government's existing support for HumeLink and the QNI Interconnector, this means we are accelerating all priority transmission projects, creating thousands of new jobs, putting downward pressure on prices and shoring up the reliability of the grid."
Marinus Link aims to facilitate the development of renewable energy export projects across Tasmania.
The $3.5 billion project is also designed to work in conjunction with other renewable energy projects, such as Battery of the Nation.
The $250 million funding boost for transmission infrastructure comes after Prime Minister Scott Morrison announced in June that Marinus Link would be fast tracked to help create jobs in the wake of the coronavirus crash.
It also builds on the $56 million allocated in the 2019-20 budget to complete a feasibility study.
Mr Taylor said the Commonwealth was "continuing to deliver a more affordable and reliable electricity system for Australians through measures to lower bills, secure our grid and drive investment in new energy infrastructure".
The next step for Marinus Link is to finalise costs so a financial investment decision can be made in conjunction with the Tasmanian government.
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