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Home News

Tasmania releases hydrogen vision

by Imogen Hartmann
March 4, 2020
in Hydro Power, Hydrogen, News, Projects, Renewable Energy, Spotlight
Reading Time: 3 mins read
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The Tasmanian Government has released its Renewable Hydrogen Action Plan – a $50 million vision to build a hydrogen industry in the state over ten years.

Tasmanian 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 the 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,” Mr Gutwein said.

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

The Plan identified that a 1000MW renewable hydrogen facility (approximately enough power for one million households) was feasible and would create an estimated 1000-1200 local jobs, and support a further 2000MW of renewable energy investment the state.

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

Hydro Tasmania CEO, Steve Davy, said that hydrogen’s potential as an energy source had long been known, but that the associated technological and economic challenges are quickly reaching a tipping point.

“Unlocking hydrogen from water is an energy intensive process and Tasmania can provide renewable energy to power the creation of ‘green’ hydrogen, a product that we know will be in high demand internationally as markets seek to decarbonise.

“With our natural and established advantages of abundant water and renewable energy generation, Tasmania has a competitive advantage in this sector that could deliver economic benefits for all Tasmanians.”

Tasmanian 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,” Mr Barnett 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 full Tasmanian Renewable Hydrogen Action Plan is available here.

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