Hazer Completes 1,250+ Hours of Demo Plant Operation, Secures $15.5M Funding

Commercial Demonstration Plant Success

Hazer Group Limited (ASX: HZR) has marked a pivotal moment in its development with the early and successful completion of its Commercial Demonstration Plant (CDP) and reactor test program. Surpassing expectations, the CDP achieved over 1,250 hours of cumulative continuous operation in 2024, including a standout 450-hour stable run with 99.6% uptime. These operational milestones significantly de-risk the company’s scale-up and commercialisation strategy for its methane pyrolysis technology, which produces clean hydrogen and high-quality graphite.

The performance data collected validates the commercial scalability and reliability of Hazer’s proprietary process. Notably, the process boasts a lower levelized cost of hydrogen (LCOH) compared to green hydrogen via electrolysis and blue hydrogen with carbon capture, positioning Hazer as a competitive player in the clean energy transition.

Graphite Production and Strategic Partnerships

Alongside hydrogen, the CDP has generated significant quantities of graphite, a valuable co-product with diverse industrial applications. Hazer is actively distributing graphite samples to strategic partners and potential buyers, including Mitsui & Co., Ltd, Chubu Electric, POSCO, and ENGIE, to explore market opportunities. Encouragingly, initial agglomeration testing of graphite has yielded promising results, broadening its potential uses.

Hazer extended its non-binding Memorandum of Understanding with Mitsui for graphite marketing through to November 2025, reinforcing a key commercialisation pathway. This partnership, combined with direct engagement with other potential offtakers, underpins a robust strategy to monetise graphite alongside hydrogen production.

International Expansion and Technology Validation

In Canada, Hazer’s collaboration with FortisBC is progressing well, with a pilot reactor test rig successfully operating under provincial funding. This supports the design of a 2,500 tonnes per annum hydrogen plant, a critical step toward international commercial deployment. Preliminary front-end engineering design (FEED) has been completed, with site selection and provincial approvals underway.

Intellectual Property and Funding Strength

Hazer’s technology protection advanced with key patents accepted by the European Patent Office and the Japanese Patent Office, covering its methane pyrolysis process and graphite production. These patents complement existing protections in major markets including the US, Korea, Australia, and New Zealand, securing Hazer’s competitive moat.

Financially, the company strengthened its position with $15.5 million in available funding at quarter-end, including $9.3 million in cash and a $6.2 million grant from the Western Australian Government’s Lower Carbon Grant Program. The receipt of a $5.1 million R&D tax incentive refund further bolstered liquidity, enabling continued investment in next-generation reactor development and commercial scale-up.

Looking Ahead

With a de-risked technology platform, growing commercial pipeline, and solid financial footing, Hazer is well-positioned to accelerate its commercialisation efforts in 2025. The upcoming installation and testing of a next-generation reactor at the CDP will provide critical data for large-scale projects exceeding 20,000 tonnes per annum hydrogen production per train. The company’s focus on hard-to-abate sectors across Australia, North America, and Asia aligns with global decarbonisation trends and demand for affordable clean hydrogen and graphite.