One organisation helping to envision the state's hydrogen future is the Tasmanian Hydrogen Alliance, with a focus on establishing a domestic consumer market.
The alliance formed in March and hopes to boost the domestic hydrogen demand to ensure a market is ready once production begins.
Alliance member Geoffrey Drucker welcomed the state government's $50 million package announcement.
"We'll be packaging up ways in which the transport industry, gas industry and others can take advantage of hydrogen now that the state government has issued their guidelines," he said.
"We'll be producing the hydrogen [at Bell Bay] but for our project to have any credibility, we've got to have someone to sell the hydrogen too."
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Mr Ducker said international markets in Asia were not as mature as they seemed and their focus had shifted to a domestic market.
He said market interests included fuel for buses and trucks, a hydrogen transport industry and fuel stations.
"The interest in Tasmania in hydrogen is far greater than we thought it would be, initially, and we only thought that it may not be initially high because hydrogen is a very, very new fuel," he said.
"It really hasn't be socialised a great deal but because it's emission free and because it's a fuel that we can produce in Tasmania people have embraced it we believe... with gusto.
"It's really going to enable what we've started as a hydrogen production plan to be something that a number of different industries can piggy back on."
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