New funding is needed to help stimulate domestic green hydrogen capability as Tasmania progresses towards establishing commercial-scale production of green hydrogen in Tasmania by 2025.

Tasmanian Energy Minister Guy Barnett said building a domestic renewable hydrogen capability will strengthen the state’s net zero emissions status and competitive advantage.

“This second round of our Renewable Hydrogen Industry Development Fund will specifically look to fund domestic production and use of green hydrogen at a scale in the order of 5-10MW to stimulate local demand and kick-start this new industry. The development of a domestic market for the use of locally produced renewable hydrogen will play a critical role in establishing a viable renewable hydrogen industry in Tasmania,” said Barnett.

The Tasmanian Government is highly supportive of the continued development of a renewable hydrogen industry in Tasmania, both for domestic and export applications, as outlined in the Tasmanian Renewable Hydrogen Action Plan.

The Tasmanian Government is actively preparing to make the state an ideal location for the development of renewable hydrogen projects as it has access to abundant fresh water, industrial precincts with available land and access to high quality infrastructure and contributes high levels of renewable energy from low-cost reliable hydropower and wind.

“To secure funding, proponents will need to be able to commit to commencing production in 2025, provide evidence of their market for the green hydrogen produced and demonstrate a pathway to commercial sustainability.

“It will be the latest step in the Rockliff Liberal Government’s plan to become a leader in green hydrogen production and for locally produced renewable hydrogen to be a significant form of energy used in Tasmania by 2030.

“The first round of the program supported feasibility studies by Grange Resources, Origin Energy and ABEL Energy, all of which have found strong potential for the industry in Tasmania.

“I encourage interested parties to work together to develop local proposals that will realise the goals of the Tasmanian Renewable Hydrogen Action Plan and further position Tasmania as a leader in the emerging hydrogen industry,” said Barnett.

A call for registrations of interest is expected in October 2023.