Hazer Group has completed a key Process Design Package with KBR, unlocking large-scale commercial potential for its methane pyrolysis technology. The company also signed a non-binding graphite offtake LOI with Green Steel WA and qualified its graphite for concrete and asphalt applications, all while maintaining a solid cash position and reducing cash burn.
- Process Design Package finalised enabling standardised 30ktpa hydrogen plant design
- Non-binding graphite offtake LOI signed with Green Steel WA linked to anthracite pricing
- Graphite qualified for concrete and asphalt, opening infrastructure markets
- Operating cash burn cut 16% quarter-on-quarter, cash balance at $15.3 million
- KBR engaged on Canadian FortisBC project and new MOU signed with Kemira
Commercial Design Milestone Unlocks Global Licensing Potential
Hazer Group (ASX:HZR) has taken a significant leap toward commercialising its methane pyrolysis technology with the completion of a Process Design Package (PDP) in partnership with global engineering firm KBR. This standardised design supports a 30,000 tonnes per annum hydrogen facility capable of producing 120,000 tonnes of graphite annually, marking the technology as an ‘off-the-shelf’ solution ready for large-scale deployment.
The PDP’s completion, announced shortly after the quarter ended, streamlines the pathway for potential customers to assess and integrate the Hazer Process, reducing development risk and aligning with established engineering practices. This development builds on the strong alliance between Hazer and KBR, enhancing credibility and scalability for industrial clients worldwide. The move echoes recent progress reported in the industrial-scale hydrogen plant design and positions Hazer at the forefront of low-emissions hydrogen technology.
Graphite Monetisation Gains Traction with Strategic Offtake and Market Qualification
Graphite, a co-product of Hazer’s hydrogen production, continues to emerge as a critical commercial differentiator. The company signed a non-binding offtake Letter of Intent with Green Steel WA to supply up to 85,000 tonnes of graphite over a decade, starting in 2030. Pricing is linked to anthracite coal benchmarks, currently around A$400 per tonne, providing early price discovery in this nascent market.
This agreement supports Green Steel WA’s plan to build Australia’s first low-emissions steel mill in Collie, Western Australia, leveraging recycled scrap steel and electric arc furnace technology. The deal underscores graphite’s role in decarbonising steelmaking, a sector responsible for about 7% of global CO2 emissions.
Adding to graphite’s commercial appeal, independent testing by Boral Labs has qualified Hazer graphite for use in concrete and asphalt applications, meeting Australian and international infrastructure standards. These validations open access to large infrastructure markets, where graphite additives can enhance durability and reduce emissions, aligning with industry sustainability goals.
Expanding Commercial Pipeline and International Engagements
Hazer is advancing multiple commercial opportunities across Australia and internationally. The company is actively engaged in projects supporting lower-emissions iron and steelmaking in Whyalla, South Australia, and Western Australia, while exploring applications in thermal energy storage, construction materials, and low-carbon steel manufacturing.
Internationally, Hazer’s technology is gaining recognition among steel manufacturers in India, Japan, and Australia. The company is also exploring emerging markets for lower-emissions liquid fuels like Sustainable Aviation Fuel and ammonia, both reliant on secure, low-cost hydrogen feedstocks.
In Canada, Hazer has engaged KBR to assist with the FortisBC project in British Columbia, a pilot-scale plant aiming for 2,500 tonnes per annum hydrogen production. KBR’s involvement aims to refine engineering and economics, with a more detailed update expected soon.
A new non-binding MOU with global chemicals firm Kemira Oyj expands Hazer’s potential reach into water-intensive industries, including water treatment and industrial processing. This collaboration could lead to technology licensing or product offtake agreements, further diversifying Hazer’s commercial avenues.
Financial Discipline Supports Ongoing Commercialisation
Despite the challenging global environment, Hazer maintained a robust cash position of $15.3 million at quarter-end, including $12.9 million in cash and equivalents and $2.4 million in unearned government grant funding. The company reduced its operating cash burn by approximately 16% quarter-on-quarter to $2.0 million, reflecting disciplined cost management while advancing commercial and technical milestones.
Additional funding is anticipated from upcoming R&D tax refunds and ARENA milestones, enhancing liquidity over the medium term. Payments to related parties totaled $209,000, covering executive and director salaries and fees.
CEO Glenn Corrie highlighted the strategic importance of recent developments and the company’s readiness to capitalise on market demand during a recent industry event in Houston and an upcoming investor webinar.
Bottom Line?
Hazer’s technological and commercial milestones set a strong foundation, but execution risks remain as it moves toward industrial-scale deployments and market expansion.
Questions in the middle?
- Will Hazer convert its non-binding graphite offtake LOI into binding contracts and secure long-term pricing?
- How will the global energy and steel sectors’ volatility affect demand for Hazer’s low-emission hydrogen and graphite?
- What progress will emerge from the FortisBC project and Kemira collaboration in the coming months?