Tasmania’s Boyer mill secures a new power deal with Aurora Energy
The long-running negotiations between the Boyer pulp and paper mill at New Norfolk and Tasmania’s state-owned energy retailer, Aurora Energy, have culminated in a new power supply agreement. The agreement ends months of public dispute over credit security and marks a turning point for the state’s iconic industrial operation as it plans a major shift away from coal toward electrification.
From conflict to compromise: the security deposit dispute
The stalemate centered on a proposed security arrangement to cover Boyer’s future energy costs. Aurora Energy sought a $7 million bank guarantee, a figure that Boyer owner David Marriner described as “obscene.” In response, Marriner proposed a $2.5 million security measure, which the energy retailer rejected. The public airing of the dispute underscored the tension between a major industrial user and Tasmania’s energy framework as both parties sought a workable solution.
Electrification on the horizon for Boyer
Beyond securing stable supply, the deal aligns with Marriner’s broader goal to electrify Boyer’s operations. The mill, a long-time powerhouse in southern Tasmania, has been pursuing a transition from coal-fired boilers to electricity. The agreement is anticipated to facilitate this shift, reducing emissions and modernizing the mill’s energy profile as part of the business transformation Marriner is pursuing after acquiring the mill earlier this year.
The details and public response
State Energy Minister Nick Duigan announced that the agreement balances Aurora’s fiduciary duties with a practical arrangement for Boyer. While the precise terms have not been released publicly, the parties described the outcome as a “mutually acceptable” solution that preserves vital energy security for a key industrial user without compromising Aurora’s commercial obligations.
Both sides welcomed the resolution. Marriner acknowledged the importance of stakeholder cooperation and highlighted the ongoing push to electrify the boilers. Aurora Energy also welcomed the new credit security framework, emphasizing that it maintains a reliable relationship with an integral Tasmanian customer while adhering to commercial standards.
Impact on jobs and the Tasmanian energy landscape
The Boyer mill is among Tasmania’s largest electricity consumers. Industry leaders stress that maintaining major industrial users is essential to keeping energy costs in check for households and smaller businesses. The Tasmanian Chamber of Commerce and Industry notes that losing big industrial players could shift the transmission burden to ordinary consumers, potentially driving up power bills across the state. The agreement, therefore, is framed as a win for jobs, energy reliability, and broader economic stability in an otherwise intricate energy market.
What comes next
With the deal in place, Boyer can advance its electrification timetable while continuing to operate as a major employer in the region. The 310 workers employed on site will benefit from greater predictability and a more sustainable energy path. For Tasmania, the agreement reinforces the importance of balancing industrial energy needs with the state’s broader energy policy goals and grid reliability as the state pursues a greener industrial future.
Quotes in context
Mr Marriner thanked stakeholders for achieving a “mutually acceptable outcome” and reiterated the importance of electrification for the mill’s future. Aurora Energy chair Trevor Danos underscored that the new security arrangements align with the company’s obligations while supporting a key customer in the Tasmanian community. Local business leaders and policymakers have welcomed the certainty for workers and the broader economy.
