A reliable water source for the Bell Bay Green Hydrogen Hub will now be secure under proposed legislative changes that will see the hub tapping into the state's irrigation water supplies.
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The move will see hydrogen producers able to access water from the proposed Tamar Irrigation Scheme, with estimated water volumes representing less than 1 per cent of what would normally flow through the Trevallyn Power Station annually.
Energy Minister Guy Barnett said the solution would be a key part of enabling green hydrogen production at Bell Bay.
"This proposed legislative change would ensure that Tasmanian Irrigation can assist the Government to progress with the most cost effective and appropriate solution to provide a sustainable and reliable water supply to the Bell Bay Green Hydrogen Hub,'' he said.
Primary Industries Minister Jo Palmer said the proposal was supported by the Tasmanian Farmers and Graziers Association, and would help get the Tamar Irrigation Scheme over the line.
She said the Scheme would benefit both farmers and green hydrogen producers, and would not impact the availability or price of water paid by farmers.
"The Government will undertake extensive consultation in relation to the proposed amendments and further information about this will be made available in the coming weeks on the Renewables, Climate and Future Industries Tasmania website,'' she said.
Bell Bay Advance Manufacturing Zone chief executive Susie Bower said under this new solution drinking water would be used for residential purposes instead of being used for industrial purposes.
She said reliable access to water would benefit future hydrogen projects, but was also a win for agriculture.
"A lot of the hydrogen proponents in 2023 will need to make those final investment decisions so having this plan for water surety will tick that box and provide certainty to be able to make those decisions," Ms Bower said.
"Rather than looking at what we need right now and today, it is looking at opening up opportunities for future developments," she said.
"It is fantastic that it is going ahead, allowing future investment into the Bell Bay area."
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