The state government will conduct feasibility studies on three hydrogen projects in Tasmania, including two at Bell Bay.
Energy Minister Guy Barnett on Tuesday announced the government would assess the feasibility of a hydrogen plant for Grange Resources to provide heat to its Port Latta facility.
The other projects will look at an export-scale hydrogen and ammonia plant, from Origin Energy, and a hydrogen and methanol plant, from ABEL Energy - both expected to be located at Bell Bay.
Mr Barnett said the projects would be funded by $2.6 million from the government's $50 million Tasmanian Renewable Hydrogen Industry Development Funding Program.
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He said a hydrogen industry in Tasmania could potentially inject billions into the state's economy and create thousands of jobs, particularly in regional areas.
The studies will be done through the Office of the Coordinator-General.
Mr Barnett announced Fortescue Metals had plans to develop a 250-megawatt hydrogen and green ammonia production facility at Bell Bay.
The company will make a decision on whether to progress this project next year.
"The project has the potential to create more than 350 construction jobs and 100 operational roles for the initial phase," Mr Barnett said.
Origin Energy's plant is expected to produce 420,000 tonnes of green ammonia each year.
ABEL Energy chief executive Michael van Baarle said the company planned to produce 60,000 tonnes of green methanol at Bell Bay each year, in addition to hydrogen.
He said the plant's location in Tasmania gave the company an advantage in the global marketplace compared to other producers of synthetic carbon-neutral fuels.
"There are many countries looking to Australia as a source of e-fuels over the next decades because we have the land and solar and wind resources necessary to produce meaningful quantities," Mr van Baarle said.
"With its outstanding hydro and wind power resources, Tasmania can lead the way because it is ready to go now."
Northern Tasmania Development Corporation chief executive Mark Baker said Bell Bay was well-placed to maximise employment, export and access to power and water opportunities.
"The precinct is well-known for its industry and innovation and has a supportive business culture," he said.
"With Bell Bay's workforce largely split three ways between George Town, West Tamar and Launceston municipalities, it is significant news for the greater Tamar Valley region."
Bell Bay Advanced Manufacturing Zone chairman Leigh Darcy said the group had been preparing for the region's future in hydrogen production.
"These announcements are the foundation for creating new jobs that will from a Northern Tasmanian perspective be long term, highly skilled and well-paid jobs in manufacturing," he said.
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