Through the China Trade Mission the Hodgman Liberal Government has been building on the success of our relationship with China in order to drive further investment and trade and to create jobs for Tasmanians.
Hydro Tasmania has signed a non-binding Heads of Agreement to pursue a potential joint venture with PowerChina Huadong and HydroChina (both subsidiaries of PowerChina) to facilitate growth opportunities for its power and water consulting business, Entura.
PowerChina is one of the largest companies in the world and a major energy player in the Asia region and the potential joint venture presents an unprecedented opportunity for Tasmania.
This potential joint venture is about protecting Tasmanian jobs, securing Entura’s future and providing further opportunities for current employees by capitalising on our expertise in renewable energy development and operations.
Entura and HydroChina signed a Memorandum of Understanding (MOU) last November during the Chinese President’s visit to Tasmania. The MOU focused on co-operation on the development of opportunities in the energy and water sectors, including hydropower and renewable energy, sustainability and environmental management and power transmission.
We have already seen this relationship delivering real benefits for Tasmania, with Entura and HydroChina partnering to win a multi-million dollar contract on the Kidston Pumped Storage Hydropower Project in North Queensland earlier this year.
The Heads of Agreement signed in Beijing on Friday sets out the intention of the parties to reach a formal agreement by the end of the year to create a stronger business model for Entura, expand market access and drive opportunities to attract investment and create Tasmanian jobs.
It describes the objectives and proposed nature of the joint venture, and some of the steps that still need to be taken to finalise the proposed joint venture. Hydro Tasmania will continue to consult staff and unions throughout this process.
We welcome this agreement and look forward to further progress over the coming months.
Matthew Groom, Minister for Energy
