Tasmania

Tasmania – Hydrogen Industry Policy Initiatives

Tasmanian Renewable Hydrogen Action Plan

In November 2019, Hydro Tasmania, a Tasmanian Government business enterprise, released a paper on Tasmania’s ‘green hydrogen’ opportunity, which noted the opportunities for renewable hydrogen production utilising Tasmania’s high-capacity factor wind energy supported by hydropower supply.

Following on from this report, in March 2020, the Tasmanian Government released the Tasmanian Renewable Hydrogen Action Plan (‘Action Plan’). The Vision is that ‘Tasmania will use our existing and expandable renewable energy resources to become a leader in large-scale renewable hydrogen production. From 2030 we will be a significant global supplier of renewable hydrogen for export and domestic use.’

Tas hydrogen report

The Goals of the Action Plan are:

By 2022 to 2024

  • Tasmania has commenced production of renewable hydrogen.
  • Locally produced renewable hydrogen is being used in Tasmania.
  • Export based renewable hydrogen production projects are well advanced.

By 2025 to 2027

  • Tasmania has commenced export of renewable hydrogen.

From 2030

  • Tasmania is a significant global producer and exporter of renewable hydrogen
  • Locally produced renewable hydrogen is a significant form of energy used in Tasmania.

The Action Plan identifies four key pillars to underpin the Vision and Goals:

  1. Explore the opportunities for using locally produced renewable hydrogen in Tasmania and for export.
  2. Provide financial support for renewable hydrogen projects for export and domestic use, and continue investment attraction activities including with international trade partners.
  3. Ensure a robust and supportive regulatory framework and assess supporting infrastructure.
  4. Build community and industry awareness, develop skills, and support research and education.

Tasmanian Renewable Hydrogen Industry Development Funding Program

In May 2020, the Tasmanian Government established the Tasmanian Renewable Hydrogen Industry Development Funding Program (‘Funding Program’), an AUD$50 million competitive program designed to provide key support measures for hydrogen-related initiatives, including:

  • an AUD$20 million Tasmanian Renewable Hydrogen Fund (TRHF)
  • up to AUD$10 million in support services including financial assistance for renewable electricity supply
  • AUD$20 million in concessional loans.

The Funding Program was available for projects and feasibility studies related to renewable hydrogen production, storage, distribution, export and domestic use within Tasmania.

Successful feasibility studies were announced in November 2020: AUD$2.6 million was provided under the Renewable Hydrogen Fund to support three feasibility studies that investigated large-scale renewable hydrogen projects in Tasmania.  The findings of the feasibility studies can be found here.

As at mid-May 2024, the AUD$20 million TRHF and the AUD$10 million support services funding are fully allocated.

Green Hydrogen Price Reduction Scheme

Under the Tasmanian Renewable Hydrogen Industry Fund, the Tasmanian Government announced an AUD$8 million Green Hydrogen Price Reduction scheme in October 2023, intended to help create both supply and demand for locally made green hydrogen. Successful applicants would receive funding on a per kilogram basis of green hydrogen sold to end-users; eligible projects must produce and supply green hydrogen in Tasmania targeting 2025 commencement with all hydrogen to be sold locally. In May 2024, the Tasmanian Government announced Countrywide Hydrogen, part of ReNu Energy, as the successful applicant under the AUD$8 million scheme.

Industry Activation Study

In 2021, the Tasmanian Government released an overview of its Industry Activation Study (IAS) that identified near and medium-term opportunities that could be used as technology demonstration trials. The key near-term opportunity was in the heavy vehicle segment which includes buses and trucks.

The Tasmanian Government has conditionally approved up to AUD$12.3 million from its Tasmanian Renewable Hydrogen Industry Development Funding Program to progress recommendations from the IAS, including for the trial of green hydrogen buses.

In July 2023, the Tasmanian Government announced that Metro Tasmania would conduct trials of four battery electric buses in Launceston and three hydrogen fuel cell electric buses in Hobart for up to three years. It is expected that the Blue Economy CRC will supply renewables-based hydrogen to fuel the buses from its proposed Hydrogen Microgrid project. The hydrogen fuel cell electric buses are due to be operational in late 2024.

Bell Bay Advanced Manufacturing Zone Technology Cluster

In February 2021, the Minister for Energy announced that the Tasmanian Government had matched the AUD$100,000 awarded by National Energy Resources Australia (NERA) to the Bell Bay Advanced Manufacturing Zone as one of the successful applicants of NERA’s Regional Hydrogen Technology Clusters Seed Funding Program. An additional AUD$100,000 in funding to support the cluster was announced by the Tasmanian Government in August 2021.

Tasmanian Green Hydrogen Hub

In January 2024, in a joint release, the Australian and Tasmanian Governments announced that an agreement had been reached for the Australian Government to invest AUD$70 million to develop the Bell Bay hydrogen hub in northern Tasmania. The release noted a combined total investment in the hub of at least AUD$300 million including Commonwealth and Tasmanian Government funding.

Funding will support the provision of the necessary infrastructure for the establishment of renewables-based hydrogen and hydrogen derivatives production and associated facilities at Bell Bay and enable the scaling up of these facilities. This would include the delivery of common-user infrastructure including upgrades across port, water, and electricity transmission, as well as providing funding for appropriate project governance and market activation opportunities.

In February 2023, The Tasmanian Government foreshadowed a proposed amendment to the Irrigation Company Act 2011 to enable Tasmanian Irrigation to supply bulk raw water to the Tasmanian Green Hydrogen Hub (with the government to undertake extensive consultation in relation to the proposed amendment). Subsequently, the Water Miscellaneous Amendments (Delegation and Industrial Water Supply) Bill 2023 was tabled in October 2023 and passed both Houses of Parliament.  The Water Miscellaneous Amendments (Delegation and Industrial Water Supply) Act 2023 is now in effect, which enables Tasmanian Irrigation to supply industrial water.

In the 2023-24 Tasmanian Budget (presented in May 2023) the Minister for Energy and Renewables indicated that funding of AUD$900,000 over three years had been provided to deliver additional project resources to progress the Tasmanian Green Hydrogen Hub.

Further information on the Tasmanian Green Hydrogen Hub can be found here.

Tasmanian Green Hydrogen International Engagement and Export Strategy

This strategy, released in 2022, sets out Tasmania’s international engagement and export agenda in relation to green hydrogen. Three key objectives are set out in this strategy:

  • Identify international engagement opportunities for the export of green hydrogen and hydrogen derivatives.
  • Implement strategic international engagement activities to facilitate at scale export-focused green hydrogen supply chains.
  • Promote internationally Tasmania’s competitive advantage in renewable energy.

Draft Future Gas Strategy for Tasmania

In October 2022, the Tasmanian Government released the Draft Future Gas Strategy for Tasmania, with the strategy noting that ‘The Government has committed to work with the incumbent natural gas distribution network infrastructure owner to explore opportunities for hydrogen blending at up to 10 per cent and to investigate potential trials of higher hydrogen blends in Tasmania’s hydrogen compatible gas distribution networks.’

Partnerships and Other Initiatives

In January 2021, the Tasmanian Government signed an MoU with Woodside Energy to demonstrate support for the proposed 10 MW H2TAS renewable hydrogen project and commit to working collaboratively on the proposal.

In December 2021, the Tasmanian Government announced it had signed a Memorandum of Understanding with the Port of Rotterdam to work together to investigate the feasibility of future exports of green hydrogen from Bell Bay to the Port of Rotterdam, in the Netherlands. The joint feasibility study was released in June 2023.

In February 2022, the Tasmanian Government announced it had signed a Memorandum of Understanding with the region of Flanders, in Northern Belgium, to support cooperation on green hydrogen development.

 

Updated: May 2024