Hazer Group Limited reported a 19% reduction in its half-year loss to $5.05 million, driven by lower operating costs and strategic commercial progress. The company is advancing its clean hydrogen and graphite technology through key partnerships and licensing efforts.
- Half-year loss reduced 19% to $5.05 million
- Revenues down 37% to $1.47 million due to lower R&D rebates
- Strategic alliance with KBR advancing commercial scale-up
- Binding MOUs with M Resources and POSCO Steel for clean hydrogen integration
- Cash reserves boosted to $14.8 million following successful capital raises
Financial Performance and Operational Overview
Hazer Group Limited has reported a narrowing of its half-year loss to $5.05 million for the six months ending 31 December 2025, down 19% from $6.19 million in the previous corresponding period. This improvement reflects a disciplined approach to operating costs, with total expenditure falling 27% to $5.49 million, largely due to reduced activity at its Commercial Demonstration Plant (CDP) and lower consulting and research expenses.
Revenues declined 37% to $1.47 million, primarily impacted by a decrease in research and development (R&D) rebates and the intermittent nature of project engineering services. Despite this, the company’s cash position strengthened to $14.8 million, bolstered by a $3.68 million capital raise through a Share Purchase Plan and related party funding, providing a solid runway for ongoing commercialisation efforts.
Advancing Commercialisation Through Strategic Partnerships
Central to Hazer’s progress is its strategic alliance with engineering giant KBR, formalised in May 2025. This partnership has accelerated the development of a Process Design Package (PDP) critical for scaling the Hazer Process; a novel methane pyrolysis technology producing low-emission hydrogen and high-purity graphite. The PDP milestone, on track for completion in early 2026, will underpin feasibility studies and customer engagements, positioning Hazer for licensing and industrial-scale deployment.
Complementing this, Hazer has secured binding Memoranda of Understanding (MOUs) with major industry players. Notably, an exclusive agreement with M Resources aims to supply clean hydrogen for the revitalisation of the Whyalla steelworks in South Australia, a project with significant national importance. Additionally, Hazer extended its collaboration with South Korea’s POSCO Steel, one of the world’s largest steel producers, to integrate Hazer’s low-emission graphite into POSCO’s carbon-neutral steelmaking initiatives.
Expanding Market Footprint and Graphite Commercialisation
Hazer’s commercial pipeline is gaining international traction, with ongoing discussions across sectors including ammonia, methanol, refining, and steelmaking. The company is also progressing a revenue-generating engineering study with UK-based EnergyPathways plc, part of the Marram Energy Storage Hub project, marking its first commercial project under the KBR alliance.
On the graphite front, Hazer is actively collaborating with partners such as Mitsui, Veolia, First Graphene, and Kemira to validate its graphite as a drop-in replacement in high-volume applications like steelmaking, cement, and industrial chemicals. Early testing results are promising, indicating strong potential for large-scale adoption in sectors critical to decarbonisation.
Outlook and Strategic Focus
While the CDP remains in standby mode, Hazer’s strategic focus has shifted towards commercial scale-up, licensing, and expanding its industrial footprint. The company’s technology offers a compelling alternative to electrolyser-based hydrogen production, addressing cost, scalability, and infrastructure challenges. With global demand for low-carbon hydrogen forecast to surge, Hazer is well positioned to capitalise on emerging opportunities, particularly in hard-to-abate sectors.
Bottom Line?
Hazer’s disciplined cost management and strategic partnerships set the stage for commercial breakthroughs as it transitions from demonstration to market scale.
Questions in the middle?
- When will Hazer secure its first major licensing agreement to commercialise the Hazer Process?
- How will the evolving global hydrogen market dynamics impact Hazer’s competitive positioning?
- What are the timelines and milestones for scaling graphite production and securing industrial off-take agreements?