"The response to our Renewable Energy Auction Scheme has been overwhelming, and it’s proof that when you provide the market with policy certainty – the market is ready to respond," Ms D'Ambrosio said, adding that 15 proposals for a total of 3500-megawatts had been submitted.

While the federal government is expected to trumpet the potential for a new multibillion-dollar industry emerging in the Latrobe region, creating an estimated 400 jobs, Ms D'Ambrosio will be announcing her government's auction will attract as much as $1.3 billion of investment, create 1250 construction jobs over two years, and 90 ongoing jobs – mainly in regional Victoria.

The competing visions come as debate over national energy policy heats up ahead of the COAG meeting of energy ministers in Melbourne on April 20.

Josh Frydenberg, the federal environment and energy minister, used a speech to the National Press Club on Wednesday to press states and the ACT to accept his government's proposed National Energy Guarantee aimed at boosting reliability, lowering prices and cutting emissions in the power sector.

Ms D'Ambrosio, though, said the states had not received the basic details of the NEG and may not do so until just days before the COAG meeting.

"The Turnbull government’s National Energy Guarantee is supposed to provide industry with certainty – and we’re yet to see anything like that," she told Fairfax Media.

Mr Frydenberg, meanwhile, is expected to attend the coal-to-hydrogen launch in the Latrobe Valley.

Media interest will likely focus on Andy Vesey, AGL's chief executive, who is also scheduled to attend, alongside Japanese industry representatives.

Mr Vesey has been under intense pressure from the PM, Mr Frydenberg and other government ministers seeking to reverse AGL's decision to close the ailing Liddell black coal-fired power station in the NSW Hunter Valley in 2022.

Fairfax Media understands the project will use the coal mine that serves AGL's Loy Yang A power plant, with the company planning to provide in-kind support for the project including land and staff.

The venture, though, faces major hurdles before exports of hydrogen can begin despite high-level support, including funds from Canberra and Tokyo.

AGL is understood to be concerned about ensuring the carbon emissions from processing the fossil fuel into hydrogen will be sequestered before the project can proceed.

This will be the second time the federal and state governments have looked to invest in clean brown coal.

Five years ago, the Victorian government axed a $50 million grant for brown coal-to-gas technology, a year after the federal government cancelled a separate $100 million grant for the same project, after the company involved, HRL, failed to meet milestones.

AGL's Mr Vesey is also expected to come under renewed pressure from the federal government over the plans to close the ailing Liddell power station.