How Will Hazer’s KBR Alliance Transform Global Hydrogen Markets?
Hazer Group has forged a strategic alliance with engineering giant KBR to fast-track commercial deployment of its methane pyrolysis technology, supported by a $10.7 million capital raise and promising project developments in Japan.
- Binding six-year alliance with KBR to commercialise methane pyrolysis technology
- Successful $10.7 million capital raise plus non-dilutive grant funding secured
- Focus shifted to large-scale hydrogen production exceeding 50,000 tonnes per annum
- Pre-feasibility study confirms strong economics for Nagoya, Japan hydrogen project
- Graphite co-product marketing strategy advancing amid global supply chain concerns
Strategic Alliance with KBR Sets Stage for Scale
Hazer Group Limited (ASX, HZR) has taken a decisive step towards commercialising its innovative methane pyrolysis technology through a binding six-year alliance with global engineering leader KBR. This partnership positions Hazer to leverage KBR’s extensive market reach and engineering expertise to accelerate deployment of clean hydrogen and graphite production facilities worldwide, particularly targeting the ammonia and methanol sectors.
The alliance includes a $3 million contribution from KBR towards development of design packages for large-scale plants exceeding 50,000 tonnes per annum of hydrogen production. This scale-up reflects growing market demand and a strategic pivot away from smaller-scale projects, aligning Hazer’s technology with industrial-scale applications.
Capital Raise and Funding Strengthen Commercialisation Drive
Complementing the alliance, Hazer successfully raised $10.7 million through a placement and share purchase plan, bolstered by additional non-dilutive grant funding. These funds will underpin the accelerated scale-up of reactor technology, licensing activities, and graphite product development. The company’s cash position now exceeds $16 million, providing a solid runway for near-term commercial milestones.
CEO Glenn Corrie highlighted the transformational nature of the quarter, emphasizing the combined strength of Hazer’s technology and KBR’s global footprint. He noted that the alliance comes at a critical time when many green hydrogen projects face cost and complexity challenges, positioning Hazer’s process as a competitive, low-emissions alternative.
Advancing Key Projects and Market Opportunities
Hazer’s pre-feasibility study for a hydrogen production facility in Nagoya, Japan, developed with Chubu Electric Power and Chiyoda Corporation, confirmed favourable project economics and identified a preferred site. The facility is designed to produce 2,500 tonnes per annum of clean hydrogen alongside high-quality graphite, leveraging existing LNG infrastructure for cost efficiency and rapid deployment.
On the graphite front, Hazer is capitalising on tightening global supply chains and increasing demand driven by energy transition sectors such as electric vehicles and battery manufacturing. The company’s low-emissions graphite co-product is being positioned as a strategic mineral with diverse industrial applications, supported by ongoing collaborations with the University of Sydney and Japanese trading house Mitsui.
Technology Scale-Up and Market Engagement
Hazer is advancing reactor scale-up and optimisation through collaboration with Particulate Solids Research Inc., focusing on fluidisation technology to de-risk commercial deployment. The company is actively engaging over 40 potential customers and partners across hard-to-abate sectors including steelmaking, refining, and petrochemicals, with a growing pipeline targeting facilities producing 50,000 to 100,000+ tonnes of hydrogen annually.
Looking ahead, Hazer expects cash burn to decline as the commercial demonstration plant remains on low-cost standby, while KBR’s $3 million contribution helps offset operating expenses. The company’s strategic focus remains on securing binding licensing agreements and advancing graphite market development to drive early revenue generation.
Bottom Line?
With KBR’s backing and a strengthened balance sheet, Hazer is poised to scale rapidly, but the pace of licensing deals and project funding will be critical to watch.
Questions in the middle?
- How quickly will Hazer convert its growing pipeline into binding licensing agreements?
- What impact will global supply chain shifts have on graphite pricing and demand for Hazer’s product?
- Can Hazer’s technology scale efficiently to meet the ambitious 50,000+ tonnes per annum targets?
