The ACT Government will lease 20 Hyundai Nexo hydrogen cars next year to be refuelled by two new stations in Canberra, while the Queensland Government will lease five of the cars.

The South Australian Government is also scoping locations for hydrogen refuelling stations for the cars.

Hydrogen as energy is still in its early phases of practical development, but Australian states appear in a race to develop an export industry for growing demand for clean transport energy in Asian markets. The Tasmanian Government this week released a draft action plan for an export hub at Bell Bay.

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Northern Tasmania Development Corporation chief executive officer Maree Tetlow said developing an export hub at Bell Bay could also result in a domestic market for green hydrogen - and the government could take the lead in demonstrating the uses of hydrogen vehicles.

"The issue around hydrogen versus electric is an ongoing conversation, but they both have potential uses domestically," she said.

"Hydrogen has the potential for longer journey capabilities, and is also more suitable for heavier vehicles.

"We would encourage the government to support the introduction of hydrogen vehicles into its fleet. This would show a proponent looking to establish itself at Bell Bay that Tasmania would be able to supply a local market, as well as domestic and international markets."

On Friday, the federal government announced it would direct $370 million to a new fund to develop Australia's hydrogen industry. Tasmania is pitching itself as a green market, believing the state could use excess renewable energy and water to carry out the electrolysis process.

While Queensland and Western Australia are also using renewable sources - namely solar - to generate hydrogen, Tasmania's access to water could place it at a competitive advantage, Bass MHR Bridget Archer said.

Questions still remain about the practical way in which hydrogen as energy could be exported long distances from Tasmania to Asian markets, such as Japan and South Korea, given it needs to be stored under high pressure and is highly flammable. The Australia Institute also claimed global hydrogen demand had been overstated, and warned against rushing into an export industry.

An explosion at a hydrogen facility in California in September cut off supply for fuelling stations, highlighting the potential risks.

With research ongoing, Ms Tetlow said it was pleasing to see the Tasmanian Government release its draft Renewable Hydrogen Action Plan this week, with hopes it could add manufacturing jobs in the state's north.

"We're impressed that the Tasmanian Government has taken this position and we now want to see it fully rolled out and supported, and adopted by potential proponents that are looking at Bell Bay, of which we know there are several," she said.

Minister for Environment, Parks and Heritage Peter Gutwein said electric and hydrogen-powered cars would play a "significant role" in the government's fleet planning in the future.

"Electric vehicles powered by Tasmanian renewable energy have significant potential to improve the efficiency of state's vehicle fleet through reduced costs and greenhouse gas emissions," he said.

"We acknowledge the key leadership roll the government fleet can play in this space and alternate fuel and EV's will be considered at an appropriate time."