The opposition has accused the government of failing to protect Bell Bay jobs and not doing enough to promote new industries.
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But Northern Tasmanian industry leaders have reassured the public that TEMCO had not yet talked about closure, while discussions were ongoing regarding a green hydrogen export facility.
Bass Labor MHA Michelle O'Byrne told Parliament the owners of Bell Bay's TEMCO smelter, South32, would decide on the facility's future in less than a month.
"There are 300 well-paid, stable jobs that are directly at risk," she said.
"The closure of TEMCO would have a devastating effect in George Town and across the North of the state."
MORE ON TEMCO'S FUTURE AT BELL BAY:
Premier Will Hodgman said he and Treasurer Peter Gutwein met with TEMCO management on May 30 and would continue to engage.
"I categorically refute any suggestion that the government is not constantly and actively engaged with all Tasmanian businesses that may have matters of pertinence to their performance and presence in our state," he said.
Mr Hodgman said he would seek an update on whether State Growth officials had met with management after the May meeting.
Launceston Chamber of Commerce executive officer Neil Grose said talk about the smelter's closure was premature.
"They haven't yet talked about closure," he said.
"To talk about closure prematurely affects business confidence and that is what drives investment."
Government 'flippant' on hydrogen potential: Labor
Labor also questioned discussions around green hydrogen at Bell Bay, and claimed the government had been "flippant" about the negotiations.
Green hydrogen production involves using excess renewable energy to create hydrogen by electrocuting drinking water, splitting hydrogen and oxygen. It can be exported as liquid hydrogen, or combined with nitrogen to create ammonia.
Asian markets have become increasingly hungry for hydrogen as a replacement for fossil fuels.
Bell Bay's access to water, power, labour and a deep sea port made it an attractive option to establish a green hydrogen production facility, with the potential for 300 to 500 jobs.
Labor energy spokesperon David O'Byrne asked why the Premier how Tasmania would be "better represented in the National Hydrogen Strategy".
MORE ON HYDROGEN PRODUCTION AT BELL BAY:
Mr Hodgman spoke about a trade mission to Japan, then asked the question be directed to the Minister for Energy at a later time, before adding "better luck next time".
Northern Tasmania Development Corporation chief executive officer Maree Tetlow said discussions involving the Coordinator-General, TasPorts, state government, George Town Council and others were ongoing.
She said businesses were analysing their customer base and suppliers.
"There are definitely some interested parties looking at this opportunity," Ms Tetlow said.
"Some of the parties are complementary to each other. It's not one proponent versus the other.
"It could be a complementary industry depending on the outcome of the TEMCO review."