Firmus Technologies says one of its three planned AI data centres in Tasmania's north is not yet funded, while other parts of its operation are still subject to development approval.
Firmus, which stunned the financial world after abandoning its plan to list on the Australian stock exchange earlier this month, is forging ahead with its Tasmanian projects despite the recent setback.
The company, headed by Oliver Curtis and Tim Rosenfield, is building an AI data centre in the Launceston suburb of St Leonards, has approval for another at Long Reach in the state's north, and is seeking approval for a third at Wesley Vale in the north-west.
Firmus general energy manager Paul Grzinic fronted Tasmania's parliamentary energy committee on Tuesday.
Mr Grzinic joined Firmus in June this year, after more than 11 years as the manager of wholesale energy at state-owned retailer Aurora Energy.
Paul Grzinic fronted the Joint Select Committee on Energy Matters in Hobart on Tuesday. (Supplied: Tasmanian parliament)
Greens MP Vica Bayley asked Mr Grzinic about Firmus's ability to fund its Tasmanian projects, given the failure of its recent attempt to attract investors.
"The Launceston site is obviously fully funded, Wesley Vale stage one is also fully funded," Mr Grzinic told the committee.
"And with regards to the other sites, obviously they're still subject to DA [development approval]."
The project at Long Reach, in the Bell Bay Advanced Manufacturing Zone, is the largest of the three at 288 megawatts.
George Town Council has approved the development, though Firmus is appealing a condition that limits the use of its backup diesel generators.
Meanwhile, Latrobe Council has asked Planning Minister Kerry Vincent to consider assessing the Wesley Vale proposal as a major project.
"DA is an important trigger for us to progress the funding components,"
Mr Grzinic said.
The project at Long Reach, in the Bell Bay Advanced Manufacturing Zone, is the largest of Firmus's three Tasmanian AI data centres. (Supplied)
After withdrawing its application to list on the ASX, Firmus said it would pursue private funding.
In a statement, a Firmus spokesperson outlined the funding status of each Tasmanian project.
"St Leonards is well advanced in construction and contracted to a customer," they said.
"Stage 1 of Wesley Vale is also contracted to a customer and has funding allocated but is still awaiting development approval.
"Bell Bay has development approval and is under option to a customer. It is a much larger project and will be funded in stages as it progresses."
Firmus would not confirm who the customers were.
Firmus corrects record on Tasmanian energy generation
AI data centres are highly energy intensive, and Firmus has publicly committed to underwriting new renewable energy projects to supply its facilities.
Earlier this month, Firmus's submission to a federal AI inquiry said those projects would not necessarily be in Tasmania.
But Mr Grzinic told the committee that part of the submission, prepared by consultants Oxford Economics Australia, was a mistake.
"That was an error and that was an interpretation from Oxford Economics on their assumption of how our policy would be applied," he said.
"We corrected that with them, saying, 'No, it's a site-specific requirement', and that's clear in our policy.
"All of our energy will be developed and procured on-island in Tasmania. There will be no developments interstate to support our Tasmanian load."
Hydro identifies three wind farms to supply Firmus
State-owned energy supplier Hydro Tasmania is assessing a request from Firmus for 444MW, with a decision expected by the end of the year.
Using right-to-information laws, the ABC obtained a document sent by Hydro Tasmania to Firmus in June, in which Hydro outlined how it might approach powering the AI data centres.
"The period of greatest focus sits between 2028 and 2030, when the full Firmus load is expected to be online but before new wind generation is commissioned," Hydro chief executive Rachel Watson said.
Rachel Watson says the new wind generation will not be available until at least 2030. (Supplied: Hydro Tasmania)
Hydro said that during this time, if its dam levels were normal or optimal, it could supply Firmus, although it would have to supplement supply through the gas-fired Tamar Valley Power Station and by importing energy from interstate via subsea cable Basslink.
Hydro said it was modelling the acceptable threshold to supply Firmus when dam levels were low or if there were limitations on Basslink.
It said it could potentially supply Firmus with half its requested load, while the other half would be conditional on Basslink availability and the status of new renewable generation.
The letter said Hydro had identified three planned Tasmanian wind farm projects that could supply Firmus once operational.
"Individually, each project is well advanced in its development approvals and connection agreements," Hydro said.
The Meredith Range Regional Reserve, where the Whaleback Ridge wind farm project is planned. (ABC News: Mackenzie Heard)
However, Hydro pointed out the projects would be competing for construction resources, meaning they would not all come online at once.
The projects were not identified, but Tasmania has multiple in the pipeline — including the Whaleback Ridge, Robbins Island and North East wind farms.
Mr Grzinic told the committee Firmus's preference was to, through Hydro, underwrite about 1,000MW of new wind energy.
"A wind farm has a capacity factor of around 40 per cent, so a 1,000-megawatt wind farm only produces on average 400 megawatts.
"We need to underwrite around 1,000 megawatts of wind."