The project will create 1200 jobs and cement Tasmania's position as a green energy powerhouse.

But why does it need to be 200 metres tall?

Here's all you need to know about the project.

The Bell Bay facility has been warmly received by governments and local bodies.

Premier Jeremy Rockliff called the project "the most significant [investment into Tasmania] in my lifetime", and said that Bell Bay had fended off 30 other sites across the globe to be named as the project's preferred site.

But why do SunCable want to build it in Tasmania?

"Bell Bay ... has access to a number of critical components," SunCable chief projects officer Chris Tyrrell said.

"It is next to an existing industrial site, there is access to a natural deep water port (of which there are very few in Australia) and there is existing road and rail infrastructure as well as nearby connection to renewable energy."

Bell Bay's status as industrial hub and access to workers were also key factors in the decision.

The facility will have three main components - workshop buildings, a jetty, and a 180-200m tower.

The buildings will house the production line, storage spaces, and offices.

There will also platforms for finished cable, electrical infrastructure and car parks.

The jetty will allow ships to moor and load up with cable.

SunCable expect the facility, which could open as early as 2029, will operate for at least 40 years.

The facility will make between 1200-1600 kilometres of cable every year.

At this rate, it would take SunCable more than five years to produce all the cable required for its Australia-Asia PowerLink (twin 4300km lines between Darwin and Singapore).

It is anticipated that there will be plenty of ongoing demand for the product, given existing supply constraints of high-voltage subsea cable and the lack of similar facilities in the southern hemisphere.

Community consultation is already under way.

It is understood that consultation will include 3D renders of the tower, showing residents how the structure would impact the skyline from their area.

Schools will also be involved in the consultation process.

"Over the coming weeks and months, we will meet with residents, government, industry, businesses and local education providers," Mr Tyrrell said.

"SunCable welcomes feedback and input from the local community before it proceeds with a final decision and development applications."

At 180-200m tall, the tower would be five times bigger than Launceston's Silo Hotel and by far the tallest structure in Tasmania.

The height is needed so gravity can be used in the second stage of a five-step manufacturing process.

In this step, polyethylene is heated and cooled around cable conductor to form an insulation layer.

Mr Tyrrell stressed that the manufacturing tower does not produce emissions.

"The entire cable manufacturing process has a very low overall emission profile," Mr Tyrrell said.

"The fully-enclosed tower enables the critical manufacturing step of conductor insulation to be performed vertically, where the insulation layer is applied and cured in a perfectly circular manner around the conductor.

"This crucial step is undertaken in a cleanroom grade workshop located at the top of the tower.

"By conducting this manufacturing process vertically, it uses the physics of gravity to ensure a finished cable that is of high quality and performance."