In another milestone, the Tasmanian Government has executed a funding agreement with Countrywide Hydrogen under the $8 million Green Hydrogen Price Reduction Scheme.
Countrywide Hydrogen’s plan is a key part of the Government’s Tasmania 2030 Strong Plan for Tasmania’s Future, which supports the move to zero-emission alternatives.
Minister for Energy and Renewables Nick Duigan said this was one of a suite of initiatives the Tasmanian Government is progressing to create a sustainable hydrogen sector that will power Tasmania for generations to come.
“The agreement is the latest step in making Tasmania’s hydrogen sector a reality and positioning Tasmania as a key player in this expanding market,” Duigan said.
Under the agreement, Countrywide Hydrogen will receive funding on a per kilogram basis for green hydrogen sold to end-users to cover the gap between the cost to produce green hydrogen and what end-users can afford. This will help make green hydrogen more competitive with existing fuels as the industry develops.
“Our long-term vision is for Tasmania to become a global leader in green hydrogen production, and this partnership with Countrywide Hydrogen is a crucial step towards this goal.”
Countrywide Hydrogen will produce hydrogen at multiple locations around the state. It will supply hydrogen for a diverse group of users, with the heavy transport sector as the initial target.
Countrywide Hydrogen Managing Director Geoffrey Drucker said the company was proud to be the first recipient of GHPRS funding.
“We congratulate the Tasmanian Government on its initiative to tangibly support the development of a hydrogen industry under the Tasmanian Renewable Hydrogen Action Plan,” he said. “Tasmania will be the showcase state for green hydrogen production using its renewable energy resources to decarbonise transport, industry, and power generation, and in doing so, demonstrate leadership nationally and internationally, while delivering energy security by reducing reliance on imported fuels.”
Countrywide Hydrogen aims to commence hydrogen production by 2026, focusing on supplying the local Tasmanian market.
Duigan said the initiative is part of the Government’s ambitious Renewable Hydrogen Action Plan.
“This important step shows we’re getting on with the job and delivering on the things that matter as part of our 2030 Strong Plan for Tasmania’s future,” Minister Duigan said. “Through this partnership, we are advancing the Tasmanian Renewable Hydrogen Action Plan by incentivising the production and sale of locally-produced green hydrogen. Market activation, such as the Green Hydrogen Price Reduction Scheme, is essential for developing this new industry. Like the $300 million Bell Bay Green Hydrogen Hub, this partnership is about growing and fostering this emerging and important industry. We remain committed to further collaboration and investment in the renewable energy sector, creating jobs, stimulating economic growth, and contributing to global decarbonisation efforts.”
This agreement will initially see more than $60 million invested in our state over the next three years as part of the Countrywide Project, money that will flow into regional and local economies and communities.
Related Articles:
- Taking the piss and converting it into hydrogen?
- The green hydrogen economy and water stewardship
- Green hydrogen plucked from the air