Hazer Group Limited reported a 124% surge in revenues to $8.5 million for FY25, driven by government grants, while cutting its net loss by 60%. The company advanced its proprietary methane pyrolysis technology, secured a strategic alliance with KBR, and made progress on key projects in Canada and Japan.
- 124% revenue increase to $8.5 million, led by $4.3 million in government grants
- Net loss after tax reduced 60% to $7.6 million, aided by grant income and lower expenses
- Successful Commercial Demonstration Plant testing confirms technology readiness
- Strategic global licensing alliance formed with engineering giant KBR
- Advancements in Canadian and Japanese projects with ongoing commercial discussions
Financial Performance Highlights
Hazer Group Limited has reported a significant turnaround in its financial results for the year ended 30 June 2025. Revenues from ordinary activities surged 124% to $8.5 million, primarily due to $4.3 million in government grant income, including milestone payments from the Western Australian Department of Jobs, Tourism, Science and Innovation and ARENA. This influx of non-dilutive funding helped reduce the net loss after tax by 60%, down to $7.6 million from $19 million the previous year.
The company also benefited from a 17% reduction in operating expenses, reflecting lower consulting and research costs and a leaner workforce. Notably, there was no impairment charge on the Commercial Demonstration Plant (CDP) this year, compared to a $3.57 million impairment in FY24, underscoring improved asset utilisation and operational progress.
Technology Validation and Commercial Readiness
Hazer’s proprietary methane pyrolysis technology, which produces clean hydrogen and graphite from methane with negligible carbon emissions, reached a critical milestone. The Commercial Demonstration Plant at Woodman Point, Western Australia, successfully completed over 1,250 hours of continuous operation, confirming the process's scalability, reliability, and economic viability.
Independent assessment by LRQA validated the plant’s operational stability and process performance, including consistent methane conversion rates and product purity. These results strengthen Hazer’s position as a competitive alternative to traditional hydrogen production methods, especially amid delays and cancellations in green hydrogen projects reliant on electrolysis.
Strategic Partnerships and Global Expansion
A pivotal development was the formation of a six-year exclusive global licensing and engineering alliance with Kellogg Brown & Root LLC (KBR), a leader in engineering solutions. KBR will spearhead marketing and licensing efforts for Hazer’s technology in key hydrogen markets such as ammonia and methanol production, leveraging its extensive global footprint in North America, Asia, Europe, and the Middle East.
In Canada, the FortisBC project advanced with successful pilot rig testing and identification of a preferred site, although site selection took longer than anticipated. Commercial offtake discussions are underway, reflecting growing market interest. Similarly, in Japan, collaboration with Chubu Electric and Chiyoda Corporation progressed with a preferred site identified and initial design work completed, supported by positive pre-feasibility outcomes.
Graphite Market Development and Intellectual Property
Hazer is also capitalising on the growing demand for low-emissions graphite, a critical mineral for battery anodes and industrial applications. Joint efforts with Mitsui and research partnerships, including with the University of Sydney, are advancing graphite valorisation and market development. The company’s graphite product offers unique properties suitable for diverse sectors such as steelmaking, thermal energy storage, and water purification.
Hazer maintains a robust intellectual property portfolio with over 70 patents awarded or pending across more than 30 jurisdictions, including recent validation by the World Intellectual Property Organisation. This strong IP position underpins the company’s competitive edge and licensing strategy.
Financial Position and Outlook
At year-end, Hazer held $12.5 million in cash and cash equivalents, supported by successful capital raises totaling over $8 million during the year and a subsequent $2.6 million Share Purchase Plan. The company’s net assets increased slightly to $13.7 million, reflecting a solid balance sheet to support ongoing commercialisation efforts.
Looking ahead, Hazer signed a non-binding memorandum of understanding with UK-based EnergyPathways to explore a hydrogen production facility integrated with a major energy storage hub, signalling ambitions to expand into European markets.
Bottom Line?
Hazer’s FY25 results and strategic partnerships set the stage for a critical commercialisation phase, but execution risks remain as projects advance.
Questions in the middle?
- How quickly will licensing deals with KBR translate into revenue streams?
- What are the timelines and risks associated with final investment decisions on the Canadian and Japanese projects?
- How will Hazer navigate competitive pressures and supply chain challenges in the graphite market?