Tasmania's Antarctic icebreaker refuelling plan rejected by federal government

The Tasmanian government wants to use road tankers to temporarily resolve a costly refuelling saga affecting Australia's Antarctic icebreaker, but the federal government says the proposal is "far from" acceptable, a Senate estimates hearing has been told.

The RSV Nuyina, which uses Hobart's Macquarie Wharf as its home port, is unable to access the city's marine fuel depot because it is barred from travelling under the Tasman Bridge due to safety concerns.

Instead, since 2023, the ship has had to travel 674 kilometres to refuel at Burnie in the state's north-west, adding about $875,000 to its annual fuel bill in previous years.

In 2024, the Tasmanian government promised to find a refuelling solution, such as a fuel barge or pipeline, as part of a $188 million deal with the Commonwealth to upgrade Macquarie Wharf.

Under the deal, the state government will get a "milestone" payment of $2 million if the Commonwealth accepts its proposed solution by July 31 this year.

Earlier this month, the ABC revealed the majority of options that have been assessed so far involve permanent infrastructure that could take up to three years to develop.

At the time, the Department of State Growth told the ABC it was continuing to work with the Australian government to find a mutually agreeable solution.

But at a Senate estimates hearing last night, the federal environment department's deputy secretary, Sean Sullivan, said no agreement had been reached.

"I'm not sure about how long it's going to take to resolve the issue," Mr Sullivan said.

"Tasmania gave us an interim solution and we are still pursuing a longer term solution that will allow us to refuel the Nuyina in Hobart."

Greens Senator Peter Whish-Wilson asked him to clarify what Tasmania's proposed interim solution was.

"I don't think it's a secret," Mr Sullivan said.

A 2023 report commissioned by the state government noted that 64 road tankers would be needed to fully refuel the Nuyina, with the process taking more than five days to complete.

Australian Antarctic Division (AAD) head Emma Campbell acknowledged the Nuyina has previously used road tankers for "top-ups" prior to shorter voyages.

But for a "major refuel", Ms Campbell told the hearing: "It would be quicker to go to Burnie."

Asked by Senator Whish-Wilson whether the road tanker proposal was acceptable, Federal Environment Minister Murray Watt said it was not.

"Far from it," Mr Watt said.

"And at every possible level, we have made the point to the Tasmanian government that they made a commitment to find a workable solution as a condition of receiving a large amount of money from the Australian government, and they have not yet delivered."

Ship to continue refuelling in Burnie

Ms Cambell told the hearing the Tasmanian government had confirmed it would not meet the impending deadline for the "milestone" payment.

"Tasmania has written to us saying that they won't meet the July time frame for the refuelling, and it has to push that back," she said.

"The [federal] minister's written in principle, saying … we understand that's the case.

"We encourage Tasmania to focus on a long-term solution and note that effectively the funding deal, including the final payments, are reliant on that fuelling infrastructure."

Mr Sullivan told the hearing the Tasmanian government had received some "unsolicited offers" for longer term solutions to the issue.

He added:

Ms Campbell said the AAD was planning to continue refuelling the ship in Burnie next year.

She said this year's cost of refuelling in Burnie was lower than previous years, at $600,000, because the ship had only gone there three times, instead of four.

The ABC has contacted the Tasmanian government for comment.