Strong signs for Tasmanian renewable hydrogen industry

Woodside Energy’s H2TAS renewable hydrogen project is a strong sign of the interest and potential in the development of a renewable hydrogen industry in Tasmania.

The proposal by Woodside, partnering with Countrywide Renewable Energy, is one of just seven projects shortlisted for Australian Renewable Energy Agency’s (ARENA) $70 million Renewable Hydrogen Deployment Funding Round.

This would see a 10 MW pilot project, producing 4.5 tonnes of hydrogen per day, established in Tasmania.

“We are pleased to be able to support this ARENA application through a MOU signed between the Tasmanian Government and Woodside that will assist in furthering discussions between the parties regarding a potential collaboration for Woodside to develop and operate a hydrogen production facility located here in Tasmania” Minister for Energy, Guy Barnett said.

The signing of this MOU demonstrates our support for companies, such as Woodside, looking to develop the hydrogen industry in Tasmania.

As one of the world's largest leading producers of liquefied natural gas, Woodside’s interest in establishing a major renewable hydrogen operation at the Bell Bay Industrial Zone could lead to significant local jobs and a major contribution to our economy in the long-term.

“We have already committed to establishing a strong and sustainable renewable hydrogen industry in Tasmania, and this interest shows our plans are viable and attractive for industry to invest and base their hydrogen projects right here” Minister for State Growth, Michael Ferguson said.

With analysis showing renewable hydrogen production costs could be 10 to 15 per cent lower in Tasmania than from other Australian power grids and 20 to 30 per cent lower than from dedicated off-grid renewables, we believe Tasmania is the ideal base for renewable hydrogen in Australia.

We are presently fast tracking work on identifying hydrogen domestic off-take opportunities in Tasmania in areas such as transport, commercial applications or agricultural use that will support progress of hydrogen proposals.

We particularly welcome the agreement between TasGas and Woodside to explore the possibilities of blending green hydrogen into the Tasmanian gas network.  With TasGas networks being relatively new they have the capability to safely convey hydrogen, unlike the older systems in other parts of Australia.

Through projects like this and a range of other small, medium and large projects from a range of potential proponents, Tasmania can become the renewable hydrogen hub of the Asia-Pacific region.