The two parties announced the agreement on Tuesday regarding a 20-hectare section of land for a potential 250-megawatt green hydrogen and ammonia production site, while FFI continues talks with Hydro Tas, TasNetworks and TasWater.

Origin Futures Fuel is also completing a feasibility report for a similar-scale facility, while ABEL Energy was looking into the feasibility of a hydrogen and methanol plant, and Woodside was undergoing an EPA assessment for a chemical works facility.

Bell Bay Advanced Manufacturing Zone chief executive officer Susie Bower said the FFI announcement was a significant development, and showed the "clear potential" for Bell Bay to accommodate the rapidly developing green hydrogen industry.

"The Bell Bay Advanced Manufacturing Zone has been working for some time with industry to lay the framework for the hydrogen industry at Bell Bay and this positive announcement will deliver a boost in confidence to the region," she said.

The Fortescue and Origin proposals were the first and largest of their types in Australia.

IN OTHER NEWS:

A focus on green ammonia - created at hydrogen production facilities using Tasmania's renewable energy resources - was considered central to agricultural industries de-carbonising.

Northern Tasmania Development Corporation chief executive Mark Baker said the ongoing development of the various proposals made the region a nation-leader.

"Now more than ever we need new investments that match Tasmania's competitive advantages and the production of hydrogen from Tasmania's clean and green energy supply will put the state at the forefront of an industry forecast to grow exponentially over the coming decade," he said.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: