Tasmania is vying to become the face of renewable hydrogen in Australia, with hopes to have an industry up and running by 2022-2024.
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A $50 million support package to attract investors to the state was announced on Tuesday, a week after the government revealed its draft renewable energy action plan.
Bell Bay and Burnie were identified as the state's future hydrogen production hubs due to their infrastructure, proximity to water and electricity capabilities.
Energy Minister Guy Barnett said the goal was to ensure the state was a global producer of hydrogen by 2030 and to start production by 2022-2024.
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"We have what every other country and business and consumer in the world really wants, and that's low cost, reliable, clean electricity," he said.
"Tasmania has a unique selling point and that is that by 2022, we'll be 100 per cent fully self-sufficient in renewable energy. There are probably just three jurisdictions in the world that are in that space and now we're targeting 200 per cent by 2040.
"We are way ahead of the game when it comes to clean electricity."
Mr Barnett said the state could produce green hydrogen at a lower cost, between 10 to 15 per cent less, than the mainland could.
Green hydrogen uses renewable energy, such as wind and hydro power, to split water into hydrogen and oxygen to power things.
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A renewable hydrogen facility at Bell Bay could create up to 1200 jobs and Northern Tasmania Development Corporation chief executive Mark Baker welcomed the news.
As did Hydro Tasmania's chief executive officer Stephen Davy, who said the company would play a pivotal role in working with future investors energy needs.
Programs using the end product will be piloted and Metro buses may be one, with State Growth Minister Michael Ferguson confirming he had been in talks with the company.
It can also be used in manufacturing, infrastructure and transport to replace diesel and other fossil fuels.
"Other states and countries will say that they, too, are able to produce hydrogen, but... no other jurisdiction is able to provide the assurance of green hydrogen," Mr Ferguson said.
"Other states are powering potential hydrogen industries with coal."
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To attract investors the support package includes $20 million in renewable hydrogen funding, $20 million in concessional loans and up to $10 million in support services.
Mr Barnett said the hydrogen would be used domestically, with programs being piloted first, and as a commodity overseas.
"There is a demand there, we know that that demand is in place from 2030 onwards," he said.
"It will certainly be an export opportunity because Singapore, South Korea, China, parts of Asia and indeed parts of Europe, they already have plans in place to be using hydrogen and wherever possible, renewable hydrogen."
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A number of initiatives were identified along with hydrogen in the state's draft renewable energy action plan, including the Battery of the Nation and the construction of a second interconnector, the Marinus Link, to export power.
Mr Barnett said hydrogen manufacturing could go ahead even if the Marinus Link was not in place.
Applications for the loans and other support services close on August 18.
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