Tasmania is in a unique position to lead the nation in the production of green hydrogen to meet both domestic and global demand. Tasmania has a strong competitive advantage to deliver a green hydrogen production industry alongside our Battery of the Nation plans and increase our renewable capacity, keep prices low and deliver more jobs for Tasmanian communities.

What is hydrogen?

Hydrogen is gaining unprecedented global attention as being a key enabler of a clean, secure and affordable energy future. Hydrogen is a molecule that is usually in a gas form (though can also be a liquid) and is quite abundant, for example it’s found in water in the form of H2O, along with oxygen. Hydrogen can be used as traditional natural gas is used, usually combusted or can be used to create electricity, for example converting hydrogen gas into electricity on board a truck to drive the electric motors.

How is hydrogen produced?

A water molecule (H2O) is two atoms of hydrogen bonded to one atom of oxygen. Through a process called electrolysis the water can be split into oxygen and hydrogen. The hydrogen can then be used locally or it can be compressed and shipped anywhere in the world.

Hydrogen production infographic

Why is Tasmania a good place to produce hydrogen?

Tasmania will be the first Australian state to be self-sufficient in renewable power generation, this means that if Hydrogen were to be produced here it would utilise hydropower or wind power to create ‘green’ hydrogen. This green hydrogen is in high demand as markets around the world are looking to transition to low carbon energy sources.

Tasmania also has strong competitive advantages, because not only would the hydrogen produced here be ‘green’, but it can be produced for approximately 10 to 15 per cent less cost than other Australian power grid. Tasmania’s water resources, skilled workers and strong electricity grid are other benefits to producing hydrogen in Tasmania. A hydrogen industry would create additional Tasmanian industry and provide skilled job opportunities. 

Our analysis – contained in the white paper Tasmania’s ‘green hydrogen’ opportunity – what makes Tasmania a unique, green hydrogen zone? shows the state has strong competitive advantages to meet domestic and global demand and become Australia’s first green hydrogen production zone.

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Tasmania’s ‘green hydrogen’ opportunity – what makes Tasmania a unique, green hydrogen zone?

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© Hydro-Electric Corporation 2019