Green Hydrogen Price Reduction Scheme

What is the Scheme?

The Tasmanian Government has announced a further round of funding under the Tasmanian Renewable Hydrogen Industry Development Fund (TRHIDF) to assist the local renewable hydrogen industry to develop.

The Green Hydrogen Price Reduction Scheme (GHPRS) is an $8 million program to incentivise production, sale, and the use of green hydrogen in Tasmania.

The GHPRS aims to bring the sale price of green hydrogen down to a level that is competitive with other energy or fuel sources to become an attractive zero emissions substitute for end users. This will help to lower the sale price for green hydrogen while the industry develops.

GHPRS was targeted to best support small to medium scale green hydrogen production projects within the range of 5-10MW.

How does it work?

Applicants were asked to nominate their proposed sale price of green hydrogen and their cost of production. Payments to a successful recipient will be targeted to cover the difference between the cost of production and a competitive sale price for green hydrogen to encourage broad use and industry uptake.

Who was successful?

The Minister for Energy and Renewables announced on 13 May 2024 that Countrywide Hydrogen, part of ReNu Energy, was the successful applicant and will receive the available funding. Learn more about the successful applicant.

The funding will be paid on a per kilogram basis, on the sale of hydrogen. Therefore, money will not be paid until the applicant is producing and selling hydrogen.

The first phase of Countrywide’s project is to construct a hydrogen production and heavy vehicle refuelling facility at the industrial hub in Brighton, which will produce up to 800 tonnes per annum of green hydrogen.

What was the application process used?

GHPRS was available to businesses proposing green hydrogen production projects located in Tasmania.

The application process required applicants to submit responses that meet the eligibility criteria and addressed the merit criteria. Submissions were to include relevant detail to reinforce assumptions and list prospective customers and their confidence in the offtake agreement.

Download the program guidelines (PDF 390.7 KB) that provided greater detail on the scheme and the selection criteria.

To access the application portal which outlines the specific application requirements and contains templates for your submission please click here stategrowthtas.smartygrants.com.au/DHA23

Frequently asked questions can be viewed here (PDF 264.6 KB) and will be updated regularly.

Successful recipients were required to enter into a funding agreement with the Department of State Growth.

How were the applications assessed?

Applications for GHPRS were competitively assessed by an independent panel, the recommendations were then passed to the Minister for Energy and Renewables for approval.