Bell Bay secured $70 million for the development of a green hydrogen hub on Thursday, with federal Energy Minister Chris Bowen flying in to announce the funding package.

The project will begin this year and create 740 jobs.

Once completed in early 2028, the hub will be capable of producing 45,000 tonnes of renewable hydrogen annually.

"Our government wants Australia to be a green hydrogen superpower," Mr Bowen said.

"Hydrogen is a way of storing renewable energy, transporting it around Australia and ultimately exporting it to rest of the world.

"Tasmania has a very important role to play in that future."

The hub will provide shared infrastructure - including ports, firming power and water - to assist in the production of hydrogen.

It is expected the hub will act as a catalyst for hydrogen investment in Bell Bay

Energy and Renewables Minister Nick Duigan said the government was in ongoing talks with a number of proponents who had flagged interest in the site.

"We certainly hope to have more to say about the securing of tenants in terms of anchor tenants for the hub site in the not too distant future," he said.

Tasmania does not have the capacity to offer power to new hydrogen companies, meaning proponents will have to source their own renewable energy.

However, the state will provide 440mW of firming through Hydro Tasmania to ensure ongoing production.

"Proponents that come to this hub will source their own generation - they'll do deals with on-island generators, new wind and solar generators," Mr Duigan said.

"That renewable energy will be firmed by hydro and there is capacity in the system to do that.

"We don't see power being an issue for this site."

Green hydrogen is produced by splitting water molecules into hydrogen and oxygen using renewable electricity.

The Bell Bay commitment forms part of $500 million of federal government funding allocated to building hydrogen hubs in areas across regional Australia.