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Renewables Tasmania

Tasmanian Renewable Hydrogen Industry Development Funding Program

Overview

The Tasmanian Government is highly supportive of the development of a renewable hydrogen industry in Tasmania, both for domestic and export applications, as outlined in the Tasmanian Renewable Hydrogen Action Plan.

The $50 million Tasmanian Renewable Hydrogen Industry Development Funding Program was launched in May 2020 to help activate renewable hydrogen industry development in Tasmania.

The program guidelines are available here.

Status of the funding program

The Tasmanian Renewable Hydrogen Development Funding Program has now closed.

There was strong interest, with 23 submissions received through this process, with a mix of proposals from feasibility studies and infrastructure projects. The applications covered the production, distribution and use of renewable hydrogen, with a wide-variety of potential end uses, including transportation.

Based on the recommendations of the Independent Assessment Panel, the Tasmanian Government announced it is providing $2.6 million to support three feasibility studies investigating large-scale renewable hydrogen projects in Tasmania arising from this first round of the Program.

These studies are:

Applicant

Feasibility Study

Origin Energy

Origin’s feasibility study is looking at developing a large-scale green hydrogen and ammonia plant at Bell Bay with an initial production rate of 420,000 tonnes of green ammonia per annum.

The study proposes a plant designed to enable flexible operation, with an estimated electrical load of more than 500 MW.  Some green hydrogen and green ammonia will be available for domestic use, however the main focus of the project is to produce green ammonia for export to Asia.  Subject to the feasibility study results, Origin are targeting delivery of its first green ammonia shipment in the mid-2020s.

More information on Origin Energy

ABEL Energy

ABEL Energy’s feasibility study will examine the feasibility of deploying a nominal 100 MW electrolyser plant to produce green hydrogen and green methanol at Bell Bay for domestic and export use.

ABEL estimates that the methanol synthesis plant will consume 38 tonnes H2/day, with up to a further 6 tonnes H2/day available to local offtakers. Carbon Dioxide (CO2) for the methanol production process is to be derived from local wood waste, or from direct capture of CO2 from the atmosphere.

More information on ABEL Energy

Grange Resources

Grange Resources’s feasibility study will explore the potential to use hydrogen to replace natural gas for industrial heating within their pelletising facility located at Port Latta.

If this proves to be technically and commercially feasible Grange Resources estimates that it will require a 90-100 MW renewable hydrogen production facility.

More information on Grange Resources

The Tasmanian Government also announced Fortescue Metals Group's potential development of a 250 MW hydrogen and green ammonia production facility at Bell Bay, which is targeted for an investment decision in 2021.

Subject to this decision, the project has the potential to create more than 350 construction jobs and 100 operational roles for the initial phase utilising Tasmania's renewable energy resources, there is opportunity for further expansion.

More information on Fortescue Metals Group.

Fortescue was not seeking any direct support from the Funding Program, and the Government has now asked the office of the Co-ordinator General to work with Fortescue from here.

Additional funding program outcome

During the assessment of first round funding, the Assessment Panel identified that applicants found it challenging to articulate a viable hydrogen offtake strategy that could be supported within the funding available. Based on this, it was recommended that more work be done to clarify market opportunities and government support for hydrogen offtake in Tasmania.

Renewables Tasmania is undertaking this work through a Hydrogen Demand Study, which will investigate end-use opportunities, such as hydrogen buses, that could be incorporated into domestic-sized renewable hydrogen projects in Tasmania.

The Government remains open to engagement with proponents to fund viable hydrogen projects in Tasmania and ask that any interested parties contact the Office of the Coordinator General in the first instance.

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View the latest Renewable Hydrogen Status Report.