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Renewable hydrogen production a step closer in Tasmania after state government announcement

The Tasmanian government has announced a new initiative it says will “kickstart” a brand new industry and see a renewable fuel produced in the state for the first time.

Energy Minister Guy Barnett. Picture: RICHARD JUPE
Energy Minister Guy Barnett. Picture: RICHARD JUPE

Tasmania is a step closer to establishing a renewable hydrogen industry, with the state government set to pump millions of dollars into domestic production of the green fuel.

The second round of the government’s $50m Renewable Hydrogen Industry Development Fund will invest in projects with a capacity of 5-10MW.

Energy and Renewables Minister Guy Barnett said the funding would “specifically look to fund domestic production” of renewable hydrogen and “stimulate local demand and kickstart 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,” he said.

Energy Minister Guy Barnett. Picture: RICHARD JUPE
Energy Minister Guy Barnett. Picture: RICHARD JUPE

“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.”

For a proponent to secure funding, they need to be able to commit to starting production in 2025 and show evidence of a market for the renewable hydrogen they plan to produce. They will also be required to “demonstrate a pathway to commercial sustainability”, Mr Barnett said.

The first round of funding for the program supported feasibility studies from Grange Resources, Origin Energy and ABEL Energy, which the minister said had “found strong potential for the industry in Tasmania”.

Registrations of interest for the new round of the fund are expected to open in October.

Countrywide Hydrogen, which has projects in the works in Launceston, Bell Bay and Brighton, welcomed Mr Barnett’s announcement, with the company’s managing director, Geoff Drucker, saying it “demonstrates the state is following through with its commitment to support a hydrogen industry as promised in the Tasmanian Renewable Hydrogen Action Plan”.

Bell Bay in Tasmania's north.
Bell Bay in Tasmania's north.

“It was on the basis of this action plan that Countrywide Hydrogen progressed the development of its three green hydrogen production and refuelling facilities to provide statewide access to green hydrogen in order to decarbonise the state’s road transport,” he said.

“Our company’s distributed hydrogen projects are all 5MW in capacity which aligns with the project scale announced for support in the government’s announcement.”

Labor says the action plan is “in tatters” due to energy companies such as Fortescue Future Industries not having sufficient access to the power and water they need to produce renewable hydrogen on the island.

robert.inglis@news.com.au

Originally published as Renewable hydrogen production a step closer in Tasmania after state government announcement

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Original URL: https://www.couriermail.com.au/news/tasmania/renewable-hydrogen-production-a-step-closer-in-tasmania-after-state-government-announcement/news-story/d1b1a173b5f5528f8d6de42be5180277