The Tasmanian government has opened the expression of interest for a $50 million support package to build a renewable hydrogen industry. This industry development support package is expected to stimulate investment in the renewable hydrogen industry, creating hundreds of jobs. The government will invest $20 million through a Tasmanian Renewable Hydrogen Fund, provide up to $20 million in concessional loans and up to $10 million in support services which include competitive electricity supply arrangements and payroll tax relief.

Hydrogen is an excellent carrier of energy and can be used for a broad range of energy applications. It can be used as a transport fuel, a substitute for natural gas and for electricity generation. Hydrogen can be produced from water using electrolysis. The Tasmanian government has been working with proponents and has hosted national and international delegations to Tasmania in recent months to investigate the unique opportunity for harnessing Hydrogen. Tasmania has an advantage of a strong transmission infrastructure, significant water availability and access to deepwater ports.

While other Australian states are relying on coal-fired energy to produce hydrogen, Tasmania can produce reliable, cost-effective, large-scale emissions-free hydrogen. In March 2020, the Tasmanian government released the Tasmanian Renewable Hydrogen Action Plan, which maps the vision for Tasmania to be generating clean renewable hydrogen by 2022-2024, and to be commercially exporting hydrogen by 2030.