Bell Bay and Burnie will become hydrogen hubs under a new $50 million support package announced by the state government.
The deal was announced on Tuesday, a week after the government revealed its draft renewable energy action plan, which identified a goal to establish hydrogen in Tasmania by 2030.
RELATED STORY:Tasmania to double production of renewables
Energy Minister Guy Barnett and State Growth Minister Michael Ferguson detailed the support package on Tuesday morning.
"While other states are relying on coal-fired energy to produce hydrogen, Tasmania has the unique opportunity to use hydro and wind energy to produce emissions-free hydrogen - known as 'green hydrogen' - up to 15 per cent more competitively than other parts of Australia,'' Mr Barnett said.
IN OTHER NEWS:
Tasmania's renewable energy initiatives include the hydrogen development, Battery of the Nation and the construction of a second interconnector, the Marinus Link, to export power.
Mr Barnett said the goal was to ensure Tasmania was a global producer of hydrogen by 2030 and start production of hydrogen by 2022-2024.
"The action plan indicates a 1000 megawatt renewable hydrogen facility, which could produce enough power for one million homes, would create an estimated 1000-1200 jobs," Mr Barnett said.
Bell Bay and Burnie will be developed as hydrogen hubs and negotiations will commence between the state and federal governments regarding how to leverage existing resources.
Mr Ferguson said businesses can now apply for a share of the comprehensive $50 million package of support measures.
He said a $20 million Tasmanian Renewable Hydrogen Fund will provide concessional loans and provide support services.
"To further support the industry the Tasmanian Government is looking at opportunities across government to increase hydrogen uptake including rolling out hydrogen buses, fleet vehicles, ferries and barges," he said.
Applications for the loans and other support services are now open.