Queensland-based green hydrogen energy company LINE Hydrogen has announced plans to build a commercial-scale green hydrogen plant in Tasmania.

The company has executed a terms sheet with Climate Capital’s Bell Bay Solar Farm to construct a 5MW ground-mounted solar farm in George Town, in northern Tasmania, that will supply behind-the-meter renewable energy to the hydrogen plant.

Construction of the plant will commence this year, with power expected to be generated by 31 January, 2023.

LINE Hydrogen founder and executive chairman Brendan James says the agreement will deliver Australia’s first commercial-scale green hydrogen as a diesel fuel replacement in heavy haulage, mining activity and back-to-base operations.

“We chose Tasmania as our first production site because of its renewable energy sources, its willingness to progress green hydrogen projects, and the relationship developed with Climate Capital,” he says.

Replacing diesel with hydrogen will help Australia become self-reliant with fuel and contribute towards the nation’s ambition of net-zero emissions by 2050.

From left: Shane Bartel, CEO, Climate Capital, and Brendan James, founder and executive chairman, LINE Hydrogen. Photo: Supplied.

“Every day, Australians consume around 84 million litres of diesel, which increases CO2 emissions and negatively affects Australia’s terms of trade, making us reliant on imports,” says James.

Climate Capital has secured development approval for the site, and LINE Hydrogen has commenced the development approval process for its green hydrogen production plant. Construction of the solar farm is set to begin by mid-2022, followed by construction of the hydrogen production facility.

LINE Hydrogen has executed a memorandum of understanding with Climate Capital to identify, develop and deliver co-located green hydrogen production plants across Australia.

“Climate Capital’s goal of decarbonising the Australian economy has taken a significant step in our partnership with LINE Hydrogen,” says Climate Capital CEO Shane Bartel.

“Our Bell Bay Solar Farm will support this industry-leading hydrogen production facility in Tasmania, and ultimately play a key role in facilitating a cost-competitive, emission-free transition for the heavy transport sector.”