The state government has opened up public consultation on a draft bill that will allow water to be supplied to the Tasmanian hydrogen hub at Bell Bay.
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The Water Miscellaneous (Delegation and Industrial Water Supply) Bill 2023 will amend legislation and enable state-owned water agency Tasmanian Irrigation to supply water to the hub via its proposed third tranche of the Tamar Valley Irrigation Scheme.
Primary Industries and Water Minister Jo Palmer said the bill was a "win-win" for Tamar farmers, who stand to benefit from the 24,500 megalitre scheme.
It would deliver water to the Beaconsfield, Selbourne, Westwood, Hillwood, Lilydale, Pipers Brook and Pipers River areas and help facilitate production of berries, dairy, vineyards and other crops.
But the $209 million project was put into doubt after initial water sales last year totalled less than half the amount needed to make the project economically viable.
"The reality is the Tamar Valley Irrigation Scheme did not meet the water sales threshold needed to underpin the business case," she said.
After lingering on the verge of cancellation, the project was rescued by a plan to extend water sales to industrial users in Bell Bay, including the proposed green hydrogen hub there.
"Adding water demand for Green hydrogen production is a game changer for the Tamar Valley farmers," Ms Palmer said.
Energy and Renewables Minister Guy Barnett said any water supplied to green hydrogen producers would be sourced from the existing Hydro Tasmania water allocation, ensuring that no additional pressure is placed on Tasmania's water supplies.
"This shared water infrastructure solution is a key part of enabling green hydrogen production at Bell Bay," he said.
Susie Bower, chief executive officer of the Bell Bay Advanced Manufacturing Zone, said the water amendment bill provided more surety to any other hydrogen proponents looking to come to Tasmania.
"They might have a plan for how they get water, but this provides a backup plan in case that doesn't work and it gives them surety that they actually have water availability here, whereas that might not occur in other states," Ms Bower said.
Consultation on the draft bill is open until August 8, 2023.
