Green hydrogen

As the world transitions to low carbon energy, fossil fuel dependent countries are looking to hydrogen to help decarbonise their economies. The demand for hydrogen is being accelerated by countries around the world committing to becoming large-scale customers for green hydrogen, and by the dramatic reduction in the price of wind and solar power. The International Energy Agency projects that the global demand for hydrogen is expected to increase between now and 2050 and rise significantly beyond 2050. (Net Zero by 2050 – Analysis - IEA)

Most of Australia’s largest trading partners, covering over 90 per cent of Australia’s exports by value, have committed to achieving net zero emissions by around mid-century. Many of these trading partners do not share the same energy attributes, which make Tasmania ideally suited to green hydrogen production, yet their reliance on green hydrogen is likely to be significant given the extent of their decarbonisation ambition.  This presents an opportunity for Tasmania to establish new hydrogen-based trade arrangements with these countries, addressing both our own emissions reduction targets and contributing to the decarbonisation of overseas countries and other Australian states.

Building upon Australia’s proven track record of exporting energy, Tasmania is ideally placed to assist the country in this transitioning energy landscape and become a player in exporting green hydrogen around the globe. Importantly, developing a green hydrogen economy is consistent with Tasmania’s clean and green reputation.

Partnering with importing countries and international consortiums provides mutual benefits. Importing countries and businesses providing access to new markets, technological expertise and production investment, and Tasmania providing low-cost firm renewable energy, access to existing infrastructure and a supportive investment environment. The Tasmanian Government will continue to foster these international partnerships and to strengthen relationships through facilitating and attending trade delegations.

The Tasmanian Government will investigate opportunities for export of renewable hydrogen from identified sites. The Bell Bay Advanced Manufacturing Zone, with its availability of land, access to a deep water port and abundant fresh water, will continue to be promoted as one of the first green hydrogen hub location for large-scale renewable hydrogen production, storage and export in Australia. Other industrial precincts, including in Tasmania’s north west region, are also possible green hydrogen export production sites.

Export-sized production facilities will secure hydrogen supply to help support local businesses to transition to fully green production processes, which will help to retain national and international competitiveness (whether the hydrogen be in the form of 100 per cent hydrogen gas; green ammonia; or green methanol). The Tasmanian Green Hydrogen Hub will provide the necessary infrastructure for hydrogen proponents to establish green hydrogen and hydrogen derivative production facilities at Bell Bay and enable the scaling up of these facilities over time.

Growing demand for Hydrogen

The main use of hydrogen today is to make ammonia. Current projections show that in 2050 the global production of ammonia will need to be around 1.2 billion tonnes to meet demand, or eight times the production in 2020. (Journal of Energy Research, January 2023)

The total global hydrogen demand in 2021 was 94 Mt and increases to projected 180Mt by 2030 (IEA, Sept 2022)

• South Korea 450,000 tonnes 2021 (AusTrade) - increasing to 1.9Mt 2030
• Japan 2 million tonnes per year 2021

The government has made significant progress in implementing its vision for Tasmania to be a leader in renewable hydrogen,. Highlights include:

• In October 2022, the Tasmanian Green Hydrogen Hub project was announced as a successful recipient of $70 million in Commonwealth funding from the Clean Hydrogen Industrial Hubs program. The Grant Agreement was signed in December 2023.
• In 2021, the government undertook a study into the best path to initiate a self-sustaining hydrogen industry in Tasmania. The Industry Activation Study (IAS) 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 $12.3 million from its Tasmanian Renewable Hydrogen Industry Development Fund to progress recommendations from the IAS, including a trial of two or three hydrogen buses by Metro Tasmania which are scheduled to be on the road in early 2024, together with Tasmania’s first green hydrogen refueler.
• The Tasmanian Government has partnered with the Blue Economy Cooperative Research Centre (BECRC), a joint Australian and Tasmanian Government initiative, headquartered in Launceston, that will help to  unlock significant private investment from around the globe in offshore energy and other blue-economy related projects.

Why Tasmania?

Tasmania's abundance of natural renewable energy resources puts us in an ideal position to capitalise on the opportunity to develop a green hydrogen industry across the entire value chain.

Our Government’s Tasmanian Renewable Hydrogen Action Plan sets out a vision for how we can harness the opportunity to develop a world class hydrogen industry. The vision is to become a leader in large-scale green hydrogen production and domestic use and export that will provide benefits to the long-term economic prosperity of Tasmania.

The Tasmanian Government also contributed to the development of the National Hydrogen Strategy, and our commitment is to work with industry, other governments, and the community to develop a renewable hydrogen industry that provides ongoing benefits for Tasmanians.

A specific area of focus is the Bell Bay Advanced Manufacturing Zone (BBAMZ) due to having all the requirements to support Tasmania's Green Hydrogen Hub vision.

In May 2020 the Government announced a $50 million Tasmanian Renewable Hydrogen Industry Development Funding Program to help activate a green hydrogen industry in Tasmania. Details on the first funding round and recipients are available here.

We continue to work on establishing international partnerships to secure export supply chains and open up collaboration pathways for hydrogen research, development, and technology innovation. Read the Hydrogen International Engagement and Export Strategy.