The Morrison Government is supporting Toyota Motor Corporation Australia Limited to transition its decommissioned car manufacturing site in Altona Victoria into a renewable energy hub to produce hydrogen for transport.

The $7.4 million Toyota Australia Hydrogen Centre project will see existing manufacturing infrastructure repurposed into Victoria's first integrated hydrogen site, complete with electrolyser, commercial grade hydrogen refuelling station and an education centre.

The Australian Government, through the Australian Renewable Energy Agency (ARENA) has provided $3.1 million in funding to the project, and builds on the $31 million the Government has already committed in RD&D grants and demonstration projects for hydrogen through ARENA.

The Hydrogen Centre will demonstrate the key processes to produce renewable hydrogen and integrate the production of renewable hydrogen through electrolysis, compression and storage, fuel cells to generate electricity and refuelling infrastructure for hydrogen vehicles.

Toyota's plans for a Hydrogen Education Centre form part of the company's larger plan to transform the former Altona site into a Centre of Excellence.

Toyota's Centre of Excellence will co-ordinate research activities between developers, academia and government that address technology development for the safe and costeffective generation and use of hydrogen.

The Hydrogen Centre will produce at least 60 kg of hydrogen each day, with on-site solar PV and battery storage providing electricity to support the energy requirements of the project.

Global annual demand for hydrogen as an energy source is expected to grow from around 1 million tonnes at the present day, to around 35 million tonnes by 2040.

Australia has the potential to be world leader in hydrogen because of our abundant energy resources and proximity to emerging export markets in North Asia.

While Bill Shorten and Labor's plan for hydrogen lacks detail, the Morrison Government has already invested more than $100 million into hydrogen projects and commissioned the development of a comprehensive and ambitious national strategy.