The trip came just hours after the announcement that the state and federal government would sign a memorandum of understanding to provide a boost to Tasmania's interconnection with the mainland.

However, Labor's energy spokesperson David O'Byrne said Mr Morrison brought with him more questions than answers.

Related: Feds to own more than half of Marinus Link in new deal

The Prime Minister visited the state to meet with Premier Peter Gutwein and key stakeholders in the project and to sign the MoU.

Mr Morrison said the document would lead Tasmania into the next phase of the Battery of the Nation and Marinus Link projects.

"Commonwealth is increasing our investment up to $150 million to get us through the design and approval phase," he said.

"In the agreement today we establish the special purpose vehicle which will carry the project forward.

"The technical and economic feasibility is very, very sound and so that gives us great confidence, Minister [Angus] Taylor and I, to take this next step."

The Marinus Link project has been the target of controversy ever since it was announced, over who will pay for the second electricity interconnector, which will see the mainland directly benefit from energy produced in the state.

Mr Morrison confirmed that the government's investment would see them hold a 62.5 per cent in the finished product, but did not confirm who would be responsible for the cost of the project.

"Ultimately, this is a commercial project," Mr Morrison said.

"The ultimate ownership structure varies, it depends on the project and how it ultimately plays out.

"What is important is that the project happens. The Tasmanian public are double beneficiaries - they will be shareholders in a successful business, and one that is actually producing lower power prices and jobs.

"That will support the investment from whatever sector it comes from."

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Mr O'Byrne said that the announcement failed to deliver any new information on a pathway forward for the Marinus Link project, including clarity on how the billion-dollar bill will be paid.

"Today the Prime Minister has failed to say how it will be paid for, he failed to provide a timeline for when it will go ahead," Mr O'Byrne said

"It's shrouded in uncertainty and the Prime Minister's re-announcement today shows it is no closer to coming to fruition.

"Every project this government touches it fumbles and this is yet another example.

"Tasmanians require a real commitment and we are just not seeing that."

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