Building Tasmania’s hydrogen energy industry

Peter Gutwein,Premier

Guy Barnett,Minister for Energy

With global markets actively looking at ways to decarbonise their economies, the Tasmanian majority Liberal Government is investing $50 million over ten years to build a renewable hydrogen industry here in Tasmania.

Premier Peter Gutwein said Tasmania’s Renewable Hydrogen Action Plan outlines real actions that will kick-start the renewable hydrogen industry in Tasmania, creating hundreds of jobs and injecting billions into our economy, particularly in regional areas.

“We will invest $20 million through a Tasmanian Renewable Hydrogen Fund, provide up to $20 million in concessional loans and up to $10 million in support services which include competitive electricity supply arrangements and payroll tax relief, to drive industry development,” he said.

“Our vision is that Tasmania will be commercially exporting hydrogen by 2030.”

The Plan identified that a 1,000 megawatt renewable hydrogen facility (approximately enough power for 1 million households) was feasible and would create an estimated 1,000 – 1,200 local jobs, and support a further 2,000 megawatts of renewable energy investment in our State.

Hydrogen, which can be used for a broad range of energy applications, is produced from water using electrolysis. Using Tasmania’s abundant renewable energy, we can produce hydrogen with zero emissions, making it very attractive to both domestic and international markets including Japan, South Korea, Singapore and China.

Minister for Energy, Guy Barnett, said the plan outlines that Tasmania’s natural and established advantages means we can produce renewable hydrogen up to 15 per cent cheaper than from the mainland power grid, and up to 30 per cent lower than from dedicated off-grid renewable resources.

“Government funding will be delivered through a competitive Expression of Interest process, due to open in the coming weeks, which will align with the Australian Renewable Energy Agency’s (ARENA’s) $70 million hydrogen funding round,” he said.

“A major renewable hydrogen industry in Tasmania plays to our strengths and competitive advantages, complements our nationally significant Marinus Link and Battery of the Nation projects, and our commitment to taking real action on climate change and reducing emissions.”

The Plan also outlines opportunities across government to increase hydrogen uptake including rolling out hydrogen buses, fleet vehicles and ferries. It is expected that private operators, such as Navigators, may also take up the option to use renewable hydrogen once it’s commercially available.

The Tasmanian Renewable Hydrogen Action Plan is available from the Department of State Growth at www.stategrowth.tas.gov.au

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