Tasmania positioned as potential green hydrogen powerhouse
Published Jul 05, 2023 16:35 Updated Jul 05, 2023 17:30
© Reuters. Tasmania positioned as potential green hydrogen powerhouseTasmania is poised to become a significant player in the green hydrogen industry by the year 2030, according to a joint feasibility study conducted by the Tasmanian Government and the Rotterdam Port Authority.
The study highlights Tasmania's globally competitive conditions, which are conducive to the production, domestic use and export of green hydrogen.
As part of the deal, Tasmania's hydrogen would be exported to the Port of Rotterdam, the most prominent energy importer in Europe.
The move will benefit companies like ReNu Energy Ltd (ASX:RNE), which is advancing multiple green hydrogen projects in Tasmania, supported by HESTA – one of the largest superannuation funds in the sector.
As Europe ramps up its efforts to achieve independence from Russian fossil fuels, the continent is projected to need up to 10 million tonnes of green hydrogen annually.
This period presents a crucial opportunity for Australian energy companies to penetrate the European and the wider global market.
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Reduce barriers and uncertainties
Tasmania's Minister for Energy and Renewables Guy Barnett said: "The study highlights that the government is focusing its attention on areas that will help to reduce barriers and uncertainties for the Tasmanian hydrogen industry.
"This includes creating domestic market demand, pursuing export goals, and progressing work on regulatory reform and guarantee of origin certification."
Study summary
The study assures that the shipping distance between Bell Bay, Tasmania and Rotterdam does not pose a logistical challenge.
This would allow Tasmanian green hydrogen to compete effectively on the future Rotterdam HyXchange trading platform.
In addition to the export strategy, the study emphasised that local use of green hydrogen should remain a priority to maximise the benefits for the state's residents and climate.
Presently, there are five export-sized hydrogen projects in progress within the Bell Bay region.
However, the Tasmanian Government has underscored the necessity for a swift scale-up of projects and supporting infrastructure.
Additionally, the government has also revealed plans to enhance offshore wind power production in the Bass Strait as part of the study.
In sync with national efforts
Tasmania's ambition for green hydrogen aligns with wider national efforts.
Earlier this year, the Western Australian Government allocated $70 million worth of land for renewable energy projects, the majority of which are primarily hydrogen-related.
Meanwhile, Prime Minister Anthony Albanese's Labor Government launched a $2 billion 'Hydrogen Headstart' program with the aim of accelerating the production and export of the fuel.
The investment would be used to provide revenue support for large-scale renewable hydrogen projects through competitive production contracts.
"Competitive hydrogen production contracts are a much-needed market mechanism to provide revenue support for flagship projects, and will help get more and more large hydrogen projects off the ground so we can scale up to gigawatt scale capacity as soon as possible," Australian Hydrogen Council CEO Fiona Simon said in a statement
"Tasmania’s low production costs offer a competitive edge, promising to make Tasmania one of the most cost-effective sources of green hydrogen in the world.
"As we look towards a more sustainable future, this advantage positions Tasmania to play a pivotal role in the global shift towards green energy."
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