State Energy Minister Guy Barnett affirmed what was one of the government's election promises - that they would tip in an extra $100,000 to the "Advanced Manufacturing Zone".

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The latest allotment of funds added to another $200,000 of incentives from the government and National Energy Resources Australia.

The NERA gave $100,000 to the project from its seed funding program geared towards helping businesses establish hydrogen technology clusters.

Mr Barnett said the funding would help the region become a "cluster", something the federal government was warming to as it decided on the location of four regional hydrogen hubs in Australia.

He said federal Energy Minister Angus Taylor recognised the strengths of Bell Bay and that the state government was "absolutely committed to ensuring Bell Bay becomes a hydrogen hub".

Mr Barnett reiterated the commitment alongside federal Liberal candidate, former state Liberal candidate and current Bell Bay chief executive Susie Bower.

Ms Bower said a buzz continued to build around the potential for the hydrogen cluster.

"We are getting quite a bit of interest nationally, and there is also interest internationally to bring a demonstration project to Tasmania," she said.

She said if Bell Bay was able to achieve its potential it would become the "largest [hydrogen facility] in the world", and one of only a handful of fully green projects.

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Hydrogen production at Bell Bay has been a pet project of the state government since it introduced a Renewable Hydrogen Action Plan in 2019.

Western Australian company Woodside in January was the recipient of a Memorandum of Understanding with the state government as it battled it out to secure part of a $70 million grant from the federal government's Renewable Energy Agency.

Woodside was unsuccessful in their bid, with two projects in Western Australia and one in Victoria chosen ahead of the sole Tasmanian proposition.

Confidence remained high with Bell Bay and Woodside sustainable energy executive vice-president Shaun Gregory said the company would push on in Tasmania regardless of the grants.

Woodside proposed a 10-megawatt pilot, dwarfed by a subsequent 250-megawatt facility put forward by Fortescue Future Industries after reaching a land agreement with TasPorts.

Two days later the potential for Bell Bay doubled again with a 500-megawatt proposition from energy giant Origin put forth.

Representatives from both Fortescue and Origin were bullish about the potential of Bell Bay, confident whatever was eventually established at the location would be Australia-leading.

A month before the Fortescue and Origin pitches, the federal government tipped it would roll out a budget that offered $275.5 million to encourage the development of four regional hydrogen hubs.

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