A hydrogen refuelling network will be built along the nation's busiest freight route.
Victoria, NSW and Queensland are spending $20 million to roll out the hydrogen network within four years.
The initial focus is on the Hume, Pacific and Newell highways.
The project will also provide partial funding for trucking companies to buy long-haul hydrogen fuel cell electric freight trucks.
The Victorian government is spending $10 million to build at least four renewable hydrogen refuelling stations between Sydney and Melbourne.
MORE READING: Spotlight on carbon farming and emission reductions.
Transport has been identified as one of the nation's largest sources of greenhouse gas emissions.
Experts say renewable hydrogen has the potential to be cost competitive with diesel.
The highway program is expected to unlock new markets and create new jobs, driving investment through regional and metropolitan areas along Australia's eastern seaboard.
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