Hazer Group Ltd signs MOU to commercialise hydrogen creation technology

(MENAFN- ProactiveInvestors - Australia) Hazer Group Ltd (ASX:HZR) has signed a non-binding memorandum of understand (MoU) with Pan American Hydrogen Inc to jointly develop and commercially deploy the Hazer Process.

The Hazer Process enables the effective conversion of natural gas and similar feedstocks, into hydrogen and high quality graphite, using iron ore as a process catalyst.

Pan American is a Texas-based global supplier of modular hydrogen generation plants.

The focus of the collaboration initially will be on small, pilot plant scale, projects capable of producing ~100 kilograms of hydrogen per day, with the scope for further development of larger scale opportunities.

The anticipated arrangement would accelerate the commercial development of the Hazer technology substantially.

MoU details

Under the terms of the MoU, Pan American and Hazer will jointly develop a technical roadmap for integration of the Hazer technology into standard hydrogen generation units as designed by Pan American.

A commercial roadmap for how the combined technology would then be commercially deployed will also be developed.

The completion of these discussions will then see the two companies enter into a binding Framework Agreement that will form the basis of the partnership moving forward.

Analysis

It is a great validation for the Hazer technology to have signed this agreement with a significant international hydrogen production partner.

Pan American has impressive capabilities and experience in the hydrogen production industry, providing significant potential to accelerate the commercial development of the Hazer process.

Shares are up 15% intra-day and up 115% year to date, currently priced at $0.585.

Pan American has provided commercial plant designs based on using natural gas, LPG, methanol and naphtha feedstocks.

It has specific expertise in downstream hydrogen processing and purification based on pressure swing adsorption (PSA) technology, which is an ideal fit for the Hazer Process.

Furthermore, these expertise make Pan American an ideal co-partner for Hazer along with Kemplant, Hazer's strategic chemical engineering partner.

The global hydrogen market is worth over US$100 billion.