The future of hydrogen as an alternate energy source continues to develop under the Liberal National Government.

The Liberal National Government, with the Australian Renewable Energy Agency (ARENA), is supporting gas company BOC to produce hydrogen from renewable energy at its Bulwer Island gas facility in Brisbane.

The pilot project will involve the installation of a 220 kW electrolyser and a 100 kW solar array to produce up to 2400 kilograms of renewable hydrogen via electrolysis per month. The project will utilise the existing industrial gas equipment and infrastructure onsite.

The project also includes a vehicle refuelling station in Brisbane. In addition to supplying BOC's existing industrial customers, 50kg per day of renewable hydrogen will be produced by BOC for the refuelling station.

The Government through ARENA has provided $950,000 in grant funding towards the $3.1 million project.

By some estimates, 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.

The development of large-scale hydrogen production, storage and export facilities could deliver economic benefits to Australian businesses and communities and provide reliable, affordable and low emissions energy to overseas trading partners.

In December 2018, the COAG Energy Council, led by the Australian Government, commissioned officials and the Chief Scientist to develop a comprehensive and ambitious national strategy for the development of an Australian hydrogen industry, to be delivered by the end of 2019.

The National Hydrogen Strategy will examine the use of hydrogen in exports, transport, and the gas distribution network, for industrial users and to support electricity systems.

Hydrogen technology will help lower the cost of reducing emissions, so that we can meet Australia's global climate commitments without sending industries and jobs offshore.

Today's announcement builds on the more than $100 million the Government has already invested in hydrogen projects around Australia.