Georgetown will be the site of a green hydrogen production facility in early 2023

Chief executive officer of LINE Hydrogen Brendan James said it's a first for Australia to work with a refueling company for the rollout of refueling.

Bonney Energy operates throughout Tasmania, as well as Victoria and is the exclusive distributor of Ampol fuel throughout these regions.

"I think it's the first of a number of rollouts of the actual implementation of hydrogen. We talk about renewable energy a lot, and this is a big step in the actual rollout of green energy across the state," Mr James said.

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Located in Georgetown, it will be the first commercial-scale green hydrogen project in Australia.

Chief executive officer of LINE Hydrogen Brendan James said while Tasmania is small in its population, it had a large heavy hauling sector.

"It allows a quick rollout of green hydrogen distribution for diesel replacement, particularly in the heavy transport and mining industry," Mr James said.

"Strategically, Georgetown suits us well in terms of the renewable energy supply. We're working with Climate Capital, a Tasmanian based company, to supply the solar power into our hydrogen production facility.

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The project comes directly from the Labor government's promise to commit $5.5 million to LINE Hydrogen.

Mr James said Tasmania holds potential to be a leading green energy supplier for the country, but the best models for supply are local.

"All of the hydrogen we produce in Tasmania will be for Tasmanian consumption, and to replace imported diesel."

He said at the moment, Australia imports about 84 million litres of diesel a day.

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"That has quite a heavy effect on our trade, our carbon dioxide emissions and a significant issue with energy security going forward."

Mr James said hydrogen refueling is essentially the same as liquified natural gas, except the carbon component is replaced with hydrogen.

"It's refueling with a gas product as opposed to a liquid product," he said.

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