Tasmania, known for its breathtaking landscapes and pristine environment, is now gearing up to become a powerhouse in renewable energy. The Tasmanian Government, in a bold move, has unveiled the Green Hydrogen Price Reduction Scheme, a pivotal part of the $50 million Tasmanian Renewable Hydrogen Industry Development Fund.
The Green Hydrogen Price Reduction Scheme is the second phase of funding, following the initial round in 2021, which supported large feasibility studies by major energy companies. However, this phase is geared towards incentivizing smaller-scale projects that can have a more immediate impact on Tasmania’s sustainable future.
Nick Duigan, Tasmania’s Energy and Renewables Minister, highlights the scheme’s dual goal: “The price-reduction scheme will stimulate demand for green hydrogen as an alternative to fossil fuels while also assisting with the cost of local production.” This two-pronged approach is crucial for making renewable hydrogen a competitive choice for industries and a cornerstone of Tasmania’s clean energy landscape.
The heart of the scheme lies in reducing the cost of green hydrogen production, making it more appealing to industries as an eco-friendly alternative to conventional fuels. Successful applicants will receive funding over approximately five years, with financial support bridging the gap between production costs and the selling price of green hydrogen on a per-kilogram basis.
Importantly, this initiative creates opportunities for small to medium-sized businesses to partner with local hydrogen producers, fostering collaboration within Tasmania’s green hydrogen ecosystem.
Eligible projects under the Green Hydrogen Price Reduction Scheme must focus on producing and supplying green hydrogen within Tasmania, targeting a 2025 start date. All hydrogen produced will be consumed locally, thus creating a thriving local market for renewable hydrogen. This approach is fundamental to establishing a viable renewable hydrogen industry in Tasmania.
The Tasmanian Renewable Hydrogen Industry Development Fund, which was initiated in 2020, has consistently supported Tasmania’s drive towards renewable energy. The Green Hydrogen Price Reduction Scheme is another milestone in this journey, playing a significant role in ensuring the stability of green hydrogen prices in the region.
By embracing green hydrogen and supporting local production, Tasmania aims to become a leader in green hydrogen production, creating renewable energy jobs for the future while ensuring a stable and sustainable energy landscape.