The state's water utilities have confirmed discussions about linking Bell Bay into the stalled Tamar Irrigation Scheme are under way.
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Andrew Kneebone, chief executive officer of Tasmanian Irrigation, said that the government is currently looking at what role Tasmanian Irrigation could play in the delivery of industrial water to Bell Bay.
"Early indicators are that the integration of the projects could be beneficial to both the Tamar Irrigation Scheme and hydrogen proponents," he said.
The TIS envisaged harvesting water from the Trevallyn Dam and delivering it via 240 kilometres of pipeline and five pump stations to farms along the East Tamar, in areas including Lilydale, Hillwood, Pipers River and Pipers Brooks.
But the 24,500 mega-litre scheme stalled earlier this year, after farmers showed less interest in buying water than expected - just 5,500 mega-litres were sold, which was insufficient to make the $288 million project viable.
Mr Kneebone has now confirmed discussion of a plan to extend the scheme to Bell Bay, which could save the project.
For Hydrogen proponents, the possibility of an extension of Tas Irrigation's water infrastructure into Bell Bay could provide an attractive alternative to Taswater, which lacks the infrastructure to feed water to all of the proposed hydrogen projects.
A spokesperson for the utility said: "TasWater can meet the hydrogen industry's needs in the short-term using existing infrastructure. Longer term, if there are significant increases in the volume of water required in Bell Bay to produce hydrogen, this may require new infrastructure."
Susie Bower, chief executive officer of the Bell Bay Advanced Manufacturing Zone (BBAMZ), said: "We know the government is working on a water solution for the hydrogen proponents, and we hope that will be announced soon."
One hydrogen project proponent said there was a lack of clarity around infrastructure, including electricity and water, as well as the timing of the release of the Master Plan by the Office of the Coordinator-General.
A spokesperson confirmed much of the masterplan work has been substantially completed.
"[But] work is still being undertaken to investigate the supply chain services and potential land requirements for supporting future opportunities. We expect this to be finalised in the coming months," the spokesperson said.
"Several proponents have been keen to secure land for their potential projects, some of which are in advanced stages of negotiation on possible parcels with the relevant landowners."
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