Tasmania’s first solar project to fuel green hydrogen plant to replace diesel use

Brisbane-based Line Hydrogen has announced plans to build its first commercial-scale green hydrogen plant in Tasmania, after securing a supply agreement from a small solar project that will power the production of green hydrogen to be used as a diesel fuel replacement in heavy haulage and mining activities.

Line Hydrogen says it has signed an agreement with Victorian renewable investment firm Climate Capital to support the construction of the 5MW Bell Bay Solar Farm, which will be the first utility scale solar facility in the island state and will supply behind-the-meter renewable energy to Line Hydrogen’s hydrogen electrolyser.

The Bell Bay Solar Farm, which was originally proposed back in mid-2020, is set to be built in George Town, in Northern Tasmania, and is expected to begin construction by the middle of 2022.

“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,” said Brendan James, Line Hydrogen’s founder and executive chairman.

“Every single day, Australians consume around 84 million litres of diesel, increasing our CO2 emissions, negatively affecting Australia’s terms of trade, and making us reliant on imports.”

James said Tasmania was attractive because of the combination of relatively cheap solar and hydro power, and was just one of a number of projects being considered around the country in conjunction with Climate Capital, including a similar sized project near Toowoomba in south-east Queensland.

The project will start at a proposed production rate of 1.49 tonnes of hydrogen a day, but grow to 14.9 tonnes of green hydrogen a day over 9 years, and expand the solar capacity at the same time. It expects its clients to be heavy haulage fleets, light vehicle fleets, and mobile power providers.

James said his company has a background in heavy haulage in its previous guise as a mining company, and was confident the industry could switch to green hydrogen from diesel, at a cost competitive rate.

“We’ve got out of mining and are completely focused on hydrogen production,” he said, adding that Line expected to deliver hydrogen trucks to Tasmania customers at a comparative rate. He declined to identify the makers of the trucks. The alkaline electrolyser will be sourced from China.

“We think this will be the country’s first commercial green hydrogen project. And by that I mean on a commercial scale and making money.” James says he has a background in electrolysis studies.

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

“We are extremely proud that our Bell Bay Solar Farm will support 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.”