ASX-listed ReNu Energy says it has secured a site for a green hydrogen production facility in Tasmania, as the company seeks to establish itself as an early leader in the supply of the zero emissions gas.

In a statement to the ASX, ReNu Energy says it has secured access to land at a location in Brighton, north of Hobart, adjacent to the Brighton Transport Hub. ReNu Energy is developing the project through its subsidiary, Countrywide Renewables Hydrogen (CRH).

The company says the South Tasmania Green Hydrogen project will involve the commissioning of 1 to 2MW of electrolyser capacity, able to produce between 430 and 900kg of hydrogen each day.

Hydrogen will be produced using supplies of renewable electricity, with the company also exploring the potential for an on-site, behind-the-meter solar facility to directly supply zero emissions power to the project.

The zero emissions gas will be made available for blending into the Tasmanian mains gas network or to supply transport or industrial energy users.

ReNu says the project is expected to be in operation by early 2024, with the potential to supply hydrogen for buses and trucks and directly to industrial energy users.

In May, the Tasmanian government announced that it would trial three hydrogen fuelled buses as part of Hobart’s public transport fleet. At the time, state energy minister Guy Barnett called for expressions of interest from potential suppliers to participate in the three-year trial.

ReNu Energy hopes the project can serve as a stepping stone to a much larger development at the Bell Bay industrial precinct, where it is considering the construction of a 5 to 10MW hydrogen electrolyser for use in manufacturing.

“With all the capabilities this project can provide, corporates can have access to a zero-emission alternative for supply chain logistics,” ReNu Energy CEO Greg Watson said.

“The Project complements advanced discussions with potential off-takers and partners to progress the planned 5-10MW Tasmanian green hydrogen project located in the Bell Bay Advanced Manufacturing Zone.”

CRH Managing Director Geoffrey Drucker says the project will help demonstrate the feasibility of zero emissions transport and support the Tasmanian state government in maintaining the state’s status as a net zero emissions jurisdiction.