Tasmania's ability to produce hydrogen from 100 per cent renewable energy should be all the green ticks the federal government needs to set up a hydrogen hub at Bell Bay.
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That's according to Bell Bay Hydrogen Cluster Manager Neil Grose, who was responding to news announced by the federal government, that Bell Bay was being eyed as a potential hydrogen hub under a $539.2 million funding package.
Prime Minister Scott Morrison will announce the funding in the upcoming federal budget, which includes $275.5 million to develop four additional clean hydrogen hubs in regional Australia.
"Tasmania has a clear advantage in that we can produce hydrogen from 100 per cent renewable energy," Mr Grose said.
"Few other places in the world can do this at the scale Tasmania can - this is our competitive advantage."
The funding commitment was also welcomed by Member for Bass Bridget Archer, who has long been lobbying for a hydrogen production facility at Bell Bay.
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"I believe our region will have a good cause to answer in this competitive process."
Bell Bay, if successful for the hub funding, will be one of four regional hubs across Australia. It's expected each hub will bring in more than 1000 jobs at each site.
Other locations being considered are Pilbara (Western Australia), Gladstone (Queensland), La Trobe Valley (Victoria), Eyre Peninsula (South Australia), Hunter Valley (New South Wales and Darwin (Northern Territory).
Energy Minister Guy Barnett said the government would pull out all the stops to ensure Bell Bay was selected as a regional hydrogen hub site.
However, that will be dependent on the outcome of the Tasmanian election on May 1.
"Bell Bay is a perfect investment choice, with its advanced manufacturing zone, abundant availability of renewable energy, state of the art infrastructure, water availability and port access. Bell Bay is 'hydrogen ready'," he said.
Bell Bay Advanced Manufacturing Zone chairman Leigh Darcy said the funding was further proof of the importance of hydrogen to the future development of Tasmania and the country.
"Bell Bay's long and innovative history of manufacturing excellence, its proximity to a deep-water port and Tasmania's 100 per cent renewable energy and plentiful water means that it is perfectly placed to be one of Australia's hydrogen hubs," he said.
"This will flow into the community in terms of new employment and the creation of new trades skill sets and tertiary education opportunities."