Tasmania's Green Hydrogen Hub Vision
The Tasmanian Green Hydrogen Hub Project at Bell Bay will be the cornerstone of Tasmania’s emerging hydrogen economy.
Located at Bell Bay, the hub is strategically positioned to leverage Tasmania’s renewable energy credentials, deep-water port, water infrastructure, and skilled industrial workforce to establish a globally competitive hydrogen industry.
In January 2024, the TGHH secured up to $70 million in funding from the Australian Government’s Regional Hydrogen Hubs Program, alongside an initial $11.9 million commitment from the Tasmanian Government for the 2024–27 financial years. This investment will unlock further private and public sector participation to deliver a world-class renewable energy project.
The TGHH aims to:
- Stimulate demand and enable the production of clean hydrogen for both domestic use and export.
- Create economic, environmental, and social opportunities for regional communities.
- Support Australian industry growth, innovation, and sector coupling across supply chains.
- Build international partnerships, export pathways, and knowledge exchange.
The hub will provide multi-user infrastructure needed to attract and accelerate investment, positioning Bell Bay as a central player in Australia’s green hydrogen economy. It strengthens Tasmania’s renewable energy credentials and lays the groundwork for the state to become a leading producer and exporter of green hydrogen. The TGHH is expected to inject about $1.2 billion into the Tasmanian economy and support hundreds of local jobs over its lifespan.
Following an Expression of Interest (EOI) process, Bell Bay Powerfuels (BBPF) was selected as a Provisional Proponent to deliver a green methanol project at Bell Bay.
The Tasmanian Government is collaborating with additional proponents to grow domestic and export markets for hydrogen and hydrogen derivatives.
The Government is leading a consortium including Tasmanian Irrigation, TasWater, TasNetworks, TasPorts, and the Bell Bay Advanced Manufacturing Zone, to deliver the enabling infrastructure by 2028. Funding supports multi-user infrastructure, including port facilities, water supply and electricity network upgrades, and market activation to help local businesses capitalise on hydrogen opportunities.
TGHH is supported by major initiatives and frameworks, including:
- The proposed Tamar Water Scheme (TWS) for secure water supply;
- George Town Substation upgrades for electricity;
- The Green Hydrogen Price Reduction Scheme to incentivise production, sale, and the use of green hydrogen in Tasmania;
- The Tasmanian Renewable Hydrogen Action Plan (PDF 2.2 MB) setting out a vision for how the State can harness the opportunity to develop a world class hydrogen industry;
- The Future Made in Australia initiative for production tax incentives and improved international market access; and
- The Cleaner Fuels Program for domestic sustainable fuels production like renewable diesel and sustainable aviation fuel.
These align Tasmania’s hydrogen ambitions with national programs including ARENA’s Headstart Round 2, Hydrogen Production Tax Incentive, and the National Water Grid Fund.
Through partnerships and innovation, the TGHH will help Tasmania play a leading role in realising Australia’s green hydrogen future.
For further information, contact TGHH@ReCFIT.tas.gov.au
Photo of Bell Bay | Credit: TasPorts
The TGHH will bring together industry partners to deliver a globally significant renewable energy project, creating affordable, reliable, and accessible clean energy.
A hydrogen hub is a precinct where industries produce and use hydrogen and hydrogen derivatives, such as green methanol and ammonia,across the energy, transport, and industrial sectors. Co-locating production and use in one area provides a cost-effective, scalable approach, leveraging existing infrastructure and shared efficiencies to accelerate Tasmania’s hydrogen industry.
The TGHH will:
- Establish a viable clean hydrogen industry leveraging Tasmania’s renewable energy, water, and industrial capabilities;
- Provide multi-user infrastructure, including water, power, and port facilities, to support hydrogen production and export;
- Stimulate domestic and international markets; and
- Drive regional economic growth through long-term jobs and investment in Northern Tasmania.
Hydrogen will support the decarbonisation of heavy transport, and energy-intensive industries and attract new industries for exports.
Bell Bay offers a unique combination of assets:
- Proximity to around 7GW of renewable energy projects, including competitive wind resources;
- Access to a deep-water port, industrial water supply, and high-voltage transmission;
- Established advanced manufacturing and supply chain ecosystem;
- Industrial land availability and port capacity,
- Direct access to Bass Strait and international shipping routes with strong road, rail, and electricity network connections.
Existing industries are already pursuing clean energy solutions, positioning Bell Bay as a natural anchor for hydrogen production. Tasmanian projects are also participating in recognition under the Australian Government Guarantee of Origin framework.
To achieve the development of export scale hydrogen production, the TGHH requires carefully staged delivery of significant multi-user enabling infrastructure, including water, transmission, and port infrastructure together with ancillary services.
Water
Access to a secure water supply is essential. Although Tasmania represents less than 1% of Australia’s landmass, it holds around 12% of the nation’s freshwater.
As part of the TGHH development, infrastructure is being planned to make water available in Bell Bay for hydrogen production, with an estimated 4,000–5,000 ML required annually to support a 300 MW electrolyser.
The proposed Tamar Water Scheme (TWS) is a key solution, comprising a 150 km pipeline and three pumping stations connecting Trevallyn Dam to Curries River Reservoir Dam. The scheme would deliver 8,500 ML of summer and 3,000 ML of winter water for irrigation across Northern Tasmania and up to 9,000 ML per annum to Bell Bay for hydrogen production.
Demand from irrigators is insufficient to justify the capital cost of a standalone agricultural scheme. Tasmanian Irrigation is working with Renewables, Climate and Future Industries Tasmania (ReCFIT) to investigate opportunities for developing the Tamar scheme as a combined agricultural and industrial project. Funding for a preliminary business case was secured in December 2024, and a preliminary business case was submitted to the Tasmanian Government in October 2025.
Power
Tasmania’s entirely renewable energy grid is among the few globally. Its hydro system provides opportunities for large-scale Variable Renewable Energy projects, with Hydro Tasmania’s approved firming capacity available.
Bell Bay is supplied via the George Town Substation, a major 220 kV node connected to industrial customers and the Basslink interconnector. TGHH and TasNetworks have explored network and transmission options for a green hydrogen facility. Stage 1 of the Regulatory Investment Test for Transmission (RIT–T) identified upgrades needed to support an additional 300 MW load from hydrogen projects, avoiding regulatory non-compliance and system instability.
The final Project Assessment Conclusions Report (PACR) will determine the preferred pathway forward.
Port
The Port of Bell Bay is a 70-hectare deep-water port operating with available capacity, making it unconstrained for growth. It serves as Tasmania’s principal hub for domestic and international freight, accessible by road and rail, and equipped with a multi-user wharf and comprehensive landside infrastructure.
The proposed Bass Strait Renewable Energy Terminal will establish up to 25 hectares of new terminal space for wind turbine components and related operations.
The Renewable Energy Services Hub (RESH) supports local businesses in manufacturing, logistics, and maintenance for renewable energy projects, with $5 million in initial funding to overcome industry barriers, build workforce capability, and strengthen Tasmania’s renewable energy supply chains.
The Bell Bay Powerfuels Project, developed by ABEL Energy, will be located in the Bell Bay industrial precinct on the site of a decommissioned oil-fired power station. The location offers strategic advantages, including deep water port access, a high-capacity grid connection, and ready availability of biomass residues from the state’s sustainable plantation fibre processing and export industry.
The plant will integrate green hydrogen produced via a 300 MW water electrolysis facility with synthesis gas from a biomass gasifier to manufacture green methanol. All energy inputs will come from 100% renewable sources, including hydro and newly developed wind assets, alongside biomass residues sourced from Tasmanian plantation forestry operations.
Green methanol production is virtually free of fossil fuel greenhouse gas emissions. The resulting methanol is biodegradable and easy to handle as a clear liquid, suitable for use as a renewable fuel or as a chemical feedstock.
For more information visit www.bellbaypowerfuels.com.au
Countrywide Hydrogen, under its Hydrogen HyWays program, is developing a series of domestic green hydrogen production and refuelling facilities across Tasmania, including key sites at Bell Bay, Brighton and Wesley Vale. These locations have been strategically selected to support Tasmania’s growing heavy transport and logistics sector, with the Bell Bay facility forming part of the state’s first north–south hydrogen refuelling corridor.
The Bell Bay project will utilise renewable electricity to power water electrolysis, producing green hydrogen for local heavy vehicle fleets, industrial users, and future commercial transport applications. Designed to scale over time, the facility will initially support domestic hydrogen demand before growing into a larger production site capable of meeting broader industry needs.
Tasmania’s Hydrogen HyWay #1 will demonstrate how a statewide refuelling network can be delivered, providing a blueprint for national expansion across mainland Australia.
For more information visit www.countrywidehydrogen.com
Developing a hydrogen industry in Tasmania will stimulate economic growth and create jobs, both directly and indirectly, through investment in renewable energy, infrastructure, and expansion of advanced manufacturing. The project is expected to generate around 700 jobs across engineering, project management, and technical roles, with construction providing work for skilled trades such as concreters, plumbers, fitters, and electricians.
The TGHH will pave the way for growth of a scale industry to supply expanding domestic and export markets.
The National Hydrogen Strategy outlines that there is strong global demand for green hydrogen and the need to capture this demand through development of export markets. A Tasmanian Green Hydrogen Hub is an ideal way to tap into this growing market and open international trade channels to the rest of Australia.
Adding hydrogen to Tasmania's energy mix will further increase the system's resilience and reliability. Increased demand for hydrogen production will stimulate the demand for further renewable energy.
Hydrogen use in existing emission-intensive industries including transport, agriculture, aquaculture and manufacturing has the potential to further reduce Tasmania's carbon footprint and greenhouse gas emissions while allowing them to remain competitive as global markets decarbonise.
The TGHH is being developed with a strong focus on local benefit, cultural respect, and meaningful engagement. Early consultation is underway across the Tamar Valley and Northern Tasmania, incorporating community aspirations, concerns, and participation opportunities as the TGHH progresses through planning, construction, and operation.
The project acknowledges the Palawa people as Traditional Owners and ongoing custodians of the land and waters. Culturally respectful engagement pathways have been developed to reflect Aboriginal values and ensure long-term partnerships, transparency, and trust. This work is being undertaken in coordination with existing Government Business frameworks and protocols.
Opportunities for local employment, skills development and training are central to engagement. TGHH is committed to supporting Tasmanian Aboriginal people, youth, and underrepresented groups in hydrogen and infrastructure sectors through partnerships with community organisations, training providers, and programs such as Skills Tasmania.
As this work continues, TGHH will provide regular updates on its community and Aboriginal engagement activities and opportunities.
Port Dalrymple School pupils at the August 2025 field day.
TGHH is demonstrating hydrogen technology in real-world applications. The TGHH collaborated with Countrywide Hydrogen for a Hydrogen Transport & Power Field Day in August 2025 showcased hydrogen-powered vehicles, fuel-cell generators, hybrid hydrogen/diesel trucks, and mobile refuellers, highlighting hydrogen’s role in decarbonising transport and industry.
The event offered science, technology, engineering and mathematics (STEM) students hands-on learning, engagement with industry experts, and insight into careers and training in Tasmania’s emerging hydrogen sector. By connecting infrastructure, education, and industry, TGHH is building the skills, partnerships, and public understanding required for Tasmania’s clean energy future.
If you would like to collaborate or be notified about a future field day, email tghhenquiries@recfit.tas.gov.au.