A draft Tasmanian Renewable Hydrogen Action Plan was released for comment this week, demonstrating that the industry could be developed in the state over the coming decade, making use of dispatchable renewable energy, ample water supply and Bell Bay's deep sea port.

Tasmanian Chamber of Commerce and Industry chief executive officer Michael Bailey said Tasmania had the potential to be a "world leader in hydrogen production", provided the right settings were in place.

"A second interconnector will herald an infrastructure and job booms throughout the state, particularly in the North," he said.

MORE ON GREEN HYDROGEN IN TASMANIA:

"But the potential for a new industry - hydrogen production - will require considerable coordination between entities such as the University of Tasmania and TasTAFE."

But Labor remained concerned that Tasmania had fallen behind mainland states - in particular Western Australia and Queensland, which were further advanced in using renewable solar energy to produce green hydrogen.

Liberal Bass MHR Bridget Archer disputed this however, and said it was prudent for Tasmania to put in as much work behind the scenes as possible before committing to the industry.

"I don't think we've fallen behind, this is really an emerging technology," she said.

"There's a long way to go in this space before the economics are right to see large-scale commercial hydrogen production.

"What we've seen through the last several months, and probably years, is that we've got to do that work behind the scenes and that's the work that was culminated yesterday with the hydrogen strategy.

"As a federal government, we've been having those ongoing conversations around the hydrogen industry here in Tasmania, and Angus Taylor was here just a couple of weeks ago talking with the Co-ordinator General about where hydrogen is at in Tasmania."

Australia's chief scientist Alan Finkel will deliver the national strategy for hydrogen on Friday.