Australian Gas Networks Limited's plans to build a "hydrogen park" at the North-East Water wastewater treatment plant were initially revealed in September last year.

The federal government has confirmed $32.1 million towards a 10 megawatt electrolyser for gas blending at the company's Murray Valley facility.

The Coalition initially announced $70 million was available under its ARENA renewable hydrogen deployment funding round, but increased to $103.3 million to fund three projects including the one in Wodonga.

Federal Energy and Emissions Reduction Minister Angus Taylor said the funding would fast-track construction.

"The Morrison Government is committed to building a clean and competitive hydrogen industry in Australia, and these projects are a huge step towards Australia cementing its place as a world leader," Mr Taylor said.

"These projects show how our existing ammonia industry and gas pipeline network will be crucial to the future clean hydrogen sector.

"Not only will these projects allow for new export opportunities, but they will build-up domestic demand so we are able to reduce emissions both here at home and overseas."

The facility will create up to 40 jobs in its design and construction with several ongoing jobs.

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Senator Jane Hume said, when built, the plant would be the equal largest electrolyser in the world.

"This means Albury Wodonga and surrounding areas will have access to renewable, lower cost gas supply for homes, businesses and industry,' she said.

"This will attract new industry, create new jobs, and cement the North-East as an attractive place to do business in regional Australia.

"It will position Albury-Wodonga as a hydrogen hub between Melbourne and Sydney."

Renewable hydrogen natural gas blend will supply homes, businesses and industry in Albury-Wodonga and beyond through the existing gas distribution network.

The government had a goal of getting the cost of hydrogen under $2 per kilogram, which is the point where it becomes competitive with alternatives in large-scale deployment across energy systems.

Renewable hydrogen natural gas blend will supply homes, businesses and industry in Albury-Wodonga and beyond through the existing gas distribution network.

The government had a goal of getting the cost of hydrogen under $2 per kilogram, which is the point where it becomes competitive with alternatives in large-scale deployment across energy systems.

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