Tasmania announces funding push for green hydrogen

Rendered image of a hydrogen molecule (tasmania)
Image: Shutterstock

Tasmanian Minister for Energy and Renewables Guy Barnett has announced new funding to help stimulate domestic green hydrogen capability as the state progresses towards establishing commercial-scale production of green hydrogen in Tasmania by 2025.

“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,” Barnett said.

Related article: Australia must accelerate hydrogen-powered transport future

“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.

“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.

Australian renewable hydrogen project developer Countrywide Hydrogen welcomed the announcement, with managing director Geoffrey Drucker saying, “Our projects are focused on supplying Tasmanian customers with access to green hydrogen to significantly reduce emissions in road transport, natural gas use, and to displace diesel where it is used for power generation.

“In making this announcement, the government is honouring its commitment in the 2020 Tasmanian Renewable Hydrogen Action Plan to support hydrogen production projects.

“Critical to enabling customers to transition from fossil fuels to zero emission hydrogen will be the price of our green hydrogen and the government’s support aligns with announced initiatives offered in other countries.

“With two-thirds of the cost of hydrogen production being the cost of electricity, we are doing all we can to minimise the power price for all projects.”

Related article: Countrywide to supply hydrogen direct to customers

Countrywide Hydrogen has three distributed hydrogen projects in Tasmania, at Brighton, Western Junction and Burnie, collectively known as the company’s first “Hydrogen HyWay”.

They are strategically located to provide a network of refuelling stations to give the road transport sector comfort that there will be sufficient supply on key transport corridors to eliminate range anxiety. Fuel cell trucks can travel at least 600km on one fill and each fill only takes a maximum of 15 minutes, similar to a diesel refuel.

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