Tasmanian Energy and Renewables Minister Nick Duigan said the State Government’s plan was to become a leader in green hydrogen production. Photo: Nick Duigan.
Establishing a local green hydrogen industry and stimulating demand are two key focuses of a new $8 million scheme announced by the Tasmanian Government.
The Green Hydrogen Price Reduction Scheme is the second round of funding announced under the $50m Tasmanian Renewable Hydrogen Industry Development Fund.
While the first round of funding, in 2021, supported large feasibility studies by major energy companies, the second round focuses on incentivising smaller-scale projects.
Tasmanian Energy and Renewables Minister Nick Duigan said the new scheme would help create both supply and demand for locally made renewable hydrogen.
“The price-reduction scheme will stimulate demand for green hydrogen as an alternative to fossil fuels while also assisting with the cost of local production,” Mr Duigan said.
“By bringing the sale price down to a competitive level, industries will be encouraged to consider Tasmanian hydrogen for their fuel and energy needs.”
Successful applicants will receive funding for about five years, based on the difference between the cost of production and the price of green hydrogen sold on a per-kilogram basis.
The Tasmanian Government said the funding round also offered the opportunity for small to medium businesses to develop partnerships with potential local hydrogen producers.
Mr Duigan explained eligible projects must produce and supply green hydrogen in Tasmania targeting a 2025 start date, with all hydrogen to be sold locally.
“A local 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.
“This scheme complements the Government’s $300m commitment to build open-access infrastructure that will support export-scale green hydrogen production at the Tasmanian Green Hydrogen Hub in Bell Bay.
“It will be another step in the Rockliff Liberal Government’s plan to become a leader in green hydrogen production.”
The overarching Tasmanian Renewable Hydrogen Industry Development Fund was announced in 2020 to support the development of a renewable hydrogen industry in the state.
“The Rockliff Liberal Government has a long-term plan to grow our economy and create jobs, and a local green hydrogen industry will stimulate the renewables jobs of the future,” Minister Duigan said.
“This will also ensure that a sale price for green hydrogen is established and maintained for a number of years, bringing more stability for end users.”
For more information about the scheme, visit the Tasmanian Government website. Applications close at 2 pm on Wednesday, 6 December.
