HazerGroup signs binding agreement with FortisBC for Canadian hydrogen facility

Hazer Group Ltd (ASX: $HZR) has signed a binding Project Development Agreement with FortisBC Energy Inc. to pursue the development of a hydrogen production facility in Canada. The facility, to be based in British Columbia, will have a design capacity of up to 2,500 tonnes per annum of clean hydrogen and approximately 9,500 tonnes per annum of Hazer graphite, marking a significant scale-up from the Company's Commercial Demonstration Plant in Western Australia.

Executive commentary on the agreement

Hazer's CEO and MD Glenn Corrie expressed, 'We are delighted to cement our relationship with FortisBC in this world-first project. Canada is a strategic location for the deployment of Hazer technology with abundant, low-cost gas, low-carbon intensity electricity and strong government support. The planned construction of the plant in Canada marks an important milestone for our company and it provides validation of our proposed business model. With the successful start-up and operation of our Commercial Demonstration Plant, this announcement is the next step in Hazer's commercialisation strategy. Assuming our position as the core technology provider for the project substantially de-risks Hazer's position and consolidates our capex-lite business model. FortisBC is the ideal partner to help us on our mission to drive the decarbonisation of hard-to-abate industries utilizing our unique climate-technology.'

Summary of HazerGroup's Canadian hydrogen facility development

Hazer Group Ltd has entered into a binding Project Development Agreement with FortisBC Energy Inc. to pursue the development of a hydrogen production facility in Canada. The facility, with a design capacity of up to 2,500 tonnes per annum of clean hydrogen and approximately 9,500 tonnes per annum of Hazer graphite, will be the Company's first commercial-scale plant to produce low-cost, low-emissions hydrogen and graphite. FortisBC will assume 100% equity ownership and lead the project development, while Hazer will license its low-carbon, low emissions technology. The agreement includes a technology licence agreement, technology commercialisation agreement, and engineering services agreement, with completion of the definitive agreements targeted for the end of 2024. The project development decision is targeted for 2025, following site selection, FEED integration, and completion of definitive agreements. Hazer's CEO and MD Glenn Corrie highlighted the strategic importance of Canada for deploying Hazer technology and the significance of the planned construction of the plant in Canada as a milestone for the company's commercialisation strategy. The announcement marks a step forward in Hazer's mission to drive the decarbonisation of hard-to-abate industries utilizing their unique climate-technology.